Is solar worth it in Pennsylvania in 2026?

How Pennsylvania pays for your solar power

Net metering at the retail rate. Pennsylvania utilities credit exported solar at the full retail rate under the AEPS Act rules, with surplus left at year end paid at the utility's price to compare.

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 100% of retail (our default for this kind of rule), so each solar kWh is worth 100% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
Solar Alternative Energy Credits (SRECs) under the AEPS Act	One credit per 1,000 kWh generated; sold on an in-state market, typically $35 to $40 per credit in recent years (Penn State Extension)

How exports are credited

Pennsylvania net metering comes from the Alternative Energy Portfolio Standards (AEPS) Act, which took effect on February 28, 2005. The Public Utility Commission (PUC) wrote the working rules in 52 Pa. Code Chapter 75. Electric distribution companies, such as PECO, PPL, Duquesne Light and the FirstEnergy Pennsylvania utilities, must offer net metering to customers who generate with Tier I or Tier II alternative energy on their side of the meter, on a first come, first served basis.

Under § 75.13, credit for the electricity a customer-generator exports is given at the full retail kilowatt-hour rate, including generation, transmission and distribution charges. Surplus kilowatt-hours roll forward from one billing period to the next until the end of the year. At that point, a customer on the utility’s default service is paid for leftover credits at the “price to compare” (the generation supply rate). A customer who buys power from a competitive supplier has the leftover distribution credits zeroed out with no payment. The customer-generator also keeps the alternative energy credits the system earns, unless a contract assigns them to someone else.

The regulation sets a nameplate limit of 50 kW for residential locations. In Hommrich v. PUC (May 12, 2020), the Commonwealth Court held that several PUC definitions were not authorized by the AEPS Act. These included the capacity limits and the independent-load requirement. The text of § 75.13 still lists them, so confirm the current size limit with your utility before sizing a system. An ordinary home system sits well below 50 kW either way.

No PUC or legislative change to the full-retail credit was found in the sources opened for this page as of October 7, 2026.

State incentives in 2026

Pennsylvania has no state income tax credit or rebate for home solar that could be confirmed from a primary source. What does exist is the solar credit market created by the AEPS Act.

• SRECs. One credit is created for every 1,000 kWh a system generates. Pennsylvania only accepts credits from in-state systems, and investor-owned utilities must buy enough to cover one half of one percent of the electricity they sell from solar, according to Penn State Extension. The extension service cites prices of about $35 to $40 per credit in recent years. A home system produces only a handful of credits a year, so most owners sell through an aggregator that keeps a share. SREC income counts as taxable income.

The federal 30% credit is not available for systems installed after December 31, 2025. Local programs, such as city rebates, may exist but were not verified here.

What it means for payback

Full retail credit for exports is the most favorable rule a state can offer, so Pennsylvania homeowners can export during the day and draw the credit down at night without losing value. Timing of use and batteries matter less than they do under net billing. The weak spot is the end of the year: oversizing a system to produce well beyond annual use is rewarded only at the price to compare, which is lower than the full retail rate, and not at all for customers on a competitive supplier. Sizing close to annual consumption fits the rule best. SRECs add a small, variable payment on top.

Other rules worth knowing

Customers should check how their electricity supply is set up before installing, since the year-end payout differs between default service and a competitive supplier. Utilities handle interconnection under the PUC’s Chapter 75 rules, and systems of 500 kW or more need separate Commission approval, which does not affect homes.

Berkeley Lab does not publish a Pennsylvania median from enough systems, so the calculator starts from the U.S. median of $3.60/W. Put your own quote in.