Solar Incentives in Pennsylvania (2026)
The 30% federal tax credit for purchased home solar ended Dec 31, 2025. Here's exactly what solar incentives are left in Pennsylvania in 2026 — and how much they're worth.
| State tax credit | None |
|---|---|
| SREC market | Yes — sellable solar certificates |
| Net metering | Retail net metering (1:1) — see Pennsylvania net metering → |
| Other incentives | No income-tax credit, but an active (lower-priced) SREC market adds income and full retail net metering drives most of the value. |
Incentive details reflect programs active in 2026. Programs change and often have caps or waitlists — always confirm current status on DSIRE and with your installer.
Federal credit status (2026): the 30% residential clean-energy credit (Section 25D) was repealed for systems purchased and placed in service after Dec 31, 2025 — cash and financed buyers can no longer claim it. A leased or PPA system can still access the commercial credit (Section 48E), which its owner can claim through 2027 and may pass on as a lower price. That makes Pennsylvania's state and utility incentives, not the federal credit, the main lever on your 2026 payback.
How much can you actually save in Pennsylvania?
A typical 8 kW install in Pennsylvania costs about $21,200 before incentives. Pennsylvania has no state income-tax credit, so your savings come from retail net metering (1:1), an active SREC market, and the specifics below: No income-tax credit, but an active (lower-priced) SREC market adds income and full retail net metering drives most of the value. With the 30% federal credit gone for purchases, these state and utility programs — plus your avoided electricity cost at ~21¢/kWh — are what now determine payback.
See full solar costs & payback for Pennsylvania
Solar panel cost in Pennsylvania →Pennsylvania solar incentives FAQ
Does Pennsylvania have a solar tax credit?
No. Pennsylvania has no state solar income-tax credit in 2026. No income-tax credit, but an active (lower-priced) SREC market adds income and full retail net metering drives most of the value.
Does Pennsylvania have an SREC market?
Yes. Pennsylvania has an active SREC market, so your system earns Solar Renewable Energy Certificates you can sell for income on top of your electricity-bill savings — a meaningful extra return that many states don't offer.
Can I still get the 30% federal solar tax credit in Pennsylvania?
Not if you buy the system. The federal residential (25D) credit was repealed for purchases placed in service after Dec 31, 2025. A leased or PPA system can still tap the commercial (48E) credit its owner claims through 2027, which may show up as a lower rate — but you won't file for 30% yourself on a cash or financed purchase.
What incentives are left in Pennsylvania in 2026?
retail net metering (1:1), an active SREC market, and: No income-tax credit, but an active (lower-priced) SREC market adds income and full retail net metering drives most of the value. Always confirm current program status on DSIRE before signing.