Solar & Net Metering Policy
Net metering is available in Pennsylvania, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Investor-owned utilities must offer full retail net metering for residential systems up to 50 kW. Pennsylvania does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Pennsylvania has an active SREC (Solar Renewable Energy Certificate) market, allowing solar owners to earn additional income by selling certificates for the electricity they generate.
Net Metering Notes
Investor-owned utilities must offer full retail net metering for residential systems up to 50 kW.
SREC Market Details
Active SREC market under the Alternative Energy Portfolio Standard (AEPS).
Does Pennsylvania have net metering?
Yes. Pennsylvania has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Investor-owned utilities must offer full retail net metering for residential systems up to 50 kW.
What solar tax credits are available in Pennsylvania?
Pennsylvania does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Pennsylvania?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Pennsylvania for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Pennsylvania?
Pennsylvania does not have a statewide solar property tax exemption. The added value from a solar installation may be included in your property assessment. Check with your county assessor for local rules.
Is there a sales tax exemption for solar in Pennsylvania?
Pennsylvania does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does Pennsylvania have an SREC market?
Yes. Pennsylvania has an active Solar Renewable Energy Certificate (SREC) market. Solar owners earn one SREC for every megawatt-hour (MWh) of electricity generated, which can be sold to utilities or brokers. Active SREC market under the Alternative Energy Portfolio Standard (AEPS).
Are there utility rebates for solar in Pennsylvania?
Statewide utility rebates are not currently available in Pennsylvania. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
Pennsylvania Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.