How much do Pennsylvania SRECs pay?

Spot market pricing has recently been around $19 to $22 per SREC. The PUC's published weighted average of $33.20 for the 2024/25 reporting year includes long-term contracts and overstates what a homeowner selling today would get.

Do I pay sales tax on solar panels in Pennsylvania?

Yes. Unlike most neighbouring states, Pennsylvania applies its 6% sales tax to residential solar. The manufacturing exemption covers commercial generation selling electricity, not a home system offsetting your own use.

Pennsylvania Solar Incentives, Rebates & Tax Credits (2026)

Pennsylvania has no state rebate, no tax credit and no property tax exemption — SREC income and full retail net metering are the whole case.

Every figure on this page verified against a primary source on August 5, 2026.

The 30% federal tax credit is gone for systems you buy

Section 25D — the Residential Clean Energy Credit — was terminated for expenditures made after December 31, 2025. The IRS treats an expenditure as made when the original installation is completed, not when you paid. That means a system you put a deposit on in 2025 but that was switched on in 2026 gets no federal credit at all. Systems installed under a lease or power purchase agreement are owned by a third party, and that owner claims business-side credits instead — ask any installer quoting you a lease exactly how that value is passed through in your rate.

IRS — OBBB FAQ on section 25D

What Pennsylvania offers in 2026

Pennsylvania SREC Market

Available now

Roughly $19–$22 per SREC on the spot market

Your system earns one Alternative Energy Credit per megawatt-hour, tradable into Pennsylvania's solar carve-out market. Two very different numbers circulate: the PUC's weighted average for the 2024/25 reporting year was $33.20, but that includes long-term contracts. A homeowner selling on the spot market today is realistically looking at $19 to $22. On a typical 8 kW system that's roughly $170 to $200 a year — real, but not transformative, and it floats with the market.

Source: PA PUC — Alternative Energy Credit Pricing

Net Metering at Full Retail

Available now

Full retail credit, including delivery

Pennsylvania's regulations credit exported solar at the full retail rate including generation, transmission and distribution — one of the more favourable formulas in the region. Residential systems up to 50 kW qualify. Monthly excess carries forward at full retail; anything left at the May 31 year end is cashed out at the price-to-compare rate. You also keep ownership of your AECs unless a contract explicitly assigns them away, so read your installer's paperwork.

Source: 52 Pa. Code §75.13

Net metering in Pennsylvania

Full retail — but PPL customers should verify

The statewide rule credits exports at full retail including delivery charges, with an annual true-up each May 31. One live caveat: the PUC approved a PPL rate settlement on June 4, 2026, effective July 1, that changes how customer-generators are compensated. Coverage suggests it targets large merchant net-metering facilities rather than home rooftops, but the treatment of ordinary residential customers in PPL territory is not clearly settled. A FirstEnergy filing raising similar questions is expected to be decided in fall 2026. If you're in PPL or FirstEnergy territory, confirm your current tariff terms before signing.

Source: PA PUC — PPL rate decision

Sales tax

Not exempt — residential solar is subject to Pennsylvania's 6% sales tax. The manufacturing exemption applies to commercial generation, not home systems.

Property tax

No statewide exemption. Assessment treatment varies by county — ask your county assessor before assuming your bill won't change.

See what these incentives are worth on your roof

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Pennsylvania incentives that no longer exist

These still appear on installer sites and even on some government pages. If a quote depends on one of them, the numbers are wrong.

Pennsylvania Sunshine Solar Program

Closed and no longer accepting applications. It was a 2008-era rebate funded through federal stimulus. The original program guidelines are still hosted on a state server, which is why it keeps resurfacing in search.

Solar for All

Not operational. PA DEP's own page states the program is not running and explicitly warns residents to disregard communications from installers claiming to be active partners in it. The federal award is in litigation.

Source: PA DEP — Solar for All

The 200% sizing cap

Not in the current regulation. Installer sites still cite a rule limiting systems to 200% of prior consumption; it does not appear in 52 Pa. Code §75.12 or §75.13 as written today.

Frequently asked questions

No. Pennsylvania offers no state income tax credit and no active rebate program for residential solar. The economics rest on net metering savings and SREC income.

Solar incentives in other states

New Jersey Solar Incentives Massachusetts Solar Incentives Maryland Solar Incentives Connecticut Solar Incentives New York Solar Incentives Maine Solar Incentives New Hampshire Solar Incentives Rhode Island Solar Incentives

Full Pennsylvania solar guide What solar panels cost in 2026 Solar savings calculator

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