Solar incentives in Pennsylvania
Federal tax credits, Pennsylvania rebates, utility programs, and Net metering at retail rate (AEPS Act, PUC-regulated, investor-owned utilities) net metering - everything that lowers your solar payback.
Incentives & rebates
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Federal solar tax credit (Section 25D, ended for 2026 purchases)
The 30 percent federal residential tax credit (Section 25D) applied through December 31, 2025 and is not available for a purchased home system placed in service after that date, so most 2026 homeowner purchases cannot claim it. If you go solar through a lease or a power purchase agreement, the provider may still claim the business version of the credit (Section 48E) and pass part of the value through in your rate. Confirm your eligibility with your installer and a tax advisor.
Pennsylvania AEPS Alternative Energy Credits (AECs / SRECs)
Under the Pennsylvania Alternative Energy Portfolio Standards Act (Act 213 of 2004), owners of certified solar photovoltaic systems earn one Alternative Energy Credit (AEC) for every 1,000 kWh generated. AECs can be sold to electric utilities and suppliers that need them for AEPS compliance, generating ongoing revenue separate from net-metering bill savings. To participate, owners register their system and connect to the PJM Generation Attribute Tracking System (GATS) through the PA AEPS portal, either directly or through an aggregator or broker. Credit prices fluctuate with market demand, so sellers typically contact an aggregator to confirm current rates before registration.
Pennsylvania Net Metering (AEPS Act, Act 213 of 2004)
Pennsylvania's Alternative Energy Portfolio Standards Act requires the major investor-owned electric distribution companies to offer net metering for qualifying residential solar systems. Excess energy your panels send to the grid is credited to your account at the retail rate, offsetting future draws from PECO, PPL Electric, Duquesne Light, and the FirstEnergy companies (Met-Ed, Penelec, and West Penn Power). Net-metering credits carry forward month to month and settle annually. Your installer confirms the current net-metering tariff for your specific utility before the project is quoted.
Net metering: Net metering at retail rate (AEPS Act, PUC-regulated, investor-owned utilities)
Pennsylvania requires its investor-owned electric distribution companies to offer net metering under the Alternative Energy Portfolio Standards Act (Act 213 of 2004) and PUC regulations. Excess solar energy your system exports to the grid is credited to your account at the retail rate: the same rate you pay when you draw power from PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, or West Penn Power. Credits carry forward month to month and are settled annually. On top of net metering, PA's AEPS program lets you earn and sell Alternative Energy Credits for every 1,000 kWh your system generates, providing a second revenue stream. Your installer reviews the current net-metering tariff and AEC program details for your specific utility before quoting.
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