2026 · No Federal Tax Credit · NREL + EIA Data
Solar Panels in Pennsylvania: Cost, Payback & ROI (2026)
Is solar still worth it in Pennsylvania after the 30% federal tax credit expired? These pre-computed estimates use NREL PVWatts production data and current 16.8¢/kWh Pennsylvania electricity rates for a typical home using 900 kWh/month.
Section 25D (30% federal solar tax credit) expired December 31, 2025
All numbers below reflect 2026 math with no federal residential credit. State incentives, where applicable, are noted in the section below.
Pennsylvania Solar at a Glance
Based on a 900 kWh/month home ($151/mo electric bill at 16.8¢/kWh), 100% offset, no state rebate applied.
8.8 kW
For 900 kWh/month home
$25,902
At $2.95/W (LBNL 2024 avg)
12.7 years
Without state rebate
$1,814
Estimated annual savings
$58,023
Cumulative before rebate
$32,121
Savings minus system cost
16.8¢/kWh
above average vs. 16.0¢ U.S. avg · EIA 2025
1,230 kWh/kW/yr
limited · 3.8 peak sun hrs/day · NREL PVWatts
Is Solar Worth It in Pennsylvania in 2026?
Pennsylvania's 16.8¢/kWh average rate is elevated by comparison to its neighboring mid-Atlantic states, and the state's AEPS (Alternative Energy Portfolio Standard) has supported an active SREC market for over a decade. Pennsylvania's solar resource is moderate — similar to neighboring states — but net metering rules vary by utility, so check specifics with your provider.
For a typical Pennsylvania home consuming 900 kWh per month, our calculation shows a 8.8 kW system needed for 100% offset. At the current national average installed cost of $2.95/W (LBNL Tracking the Sun 2024), that's $25,902 gross before any state rebates. Year-one savings of $1,814 grow each year as electricity rates escalate — the model assumes 2.5%/year (EIA AEO 2024).
The 12.7 years payback period is moderate — within the national average range of 8–12 years. Over 25 years — the standard warranty period for most premium panels — a Pennsylvania homeowner following this profile would save an estimated $58,023 total, for a net benefit of $32,121 after recovering the system cost.
Year-by-Year Savings Snapshot: First 10 Years
Based on 8.8 kW system, 0.5%/yr degradation, 2.5%/yr rate escalation, no state rebate.
| Year | Production (kWh) | Annual Savings | Cumulative |
|---|---|---|---|
| Year 1 | 10,800 | $1,814 | $1,814 |
| Year 2 | 10,746 | $1,850 | $3,665 |
| Year 3 | 10,692 | $1,887 | $5,552 |
| Year 4 | 10,639 | $1,925 | $7,477 |
| Year 5 | 10,586 | $1,963 | $9,440 |
| Year 6 | 10,533 | $2,002 | $11,442 |
| Year 7 | 10,480 | $2,042 | $13,484 |
| Year 8 | 10,428 | $2,082 | $15,566 |
| Year 9 | 10,375 | $2,124 | $17,690 |
| Year 10 | 10,324 | $2,166 | $19,856 |
System cost to recover: $25,902. Table shows savings without state rebate applied. Use the interactive calculator to enter your actual bill and any rebate.
Solar Incentives in Pennsylvania (2026)
Pennsylvania SREC prices are among the lower in the mid-Atlantic due to the AEPS requirements being less aggressive, but they provide an additional revenue stream.
- Pennsylvania SREC market
- Retail-rate net metering (Act 35 of 2007)
- Property tax exemption on solar (varies by municipality)
- Pennsylvania Sunshine Solar Program (when funded)
Incentive programs change frequently. Verify current offerings at dsireusa.org or directly with your utility before making any purchasing decision.
How We Calculate Pennsylvania Solar ROI
These estimates use the same methodology as our interactive solar ROI calculator, applied to Pennsylvania-specific data:
System cost
$2.95/W installed
LBNL Tracking the Sun 2024
Solar production
1,230 kWh/kW/yr
NREL PVWatts v8
Electricity rate
16.8¢/kWh
EIA Residential Rates 2025
Rate escalation
2.5%/year
EIA Annual Energy Outlook 2024
Panel degradation
0.5%/year
NREL (Jordan & Kurtz, median)
System lifetime
25 years
Standard warranty period
No Section 25D (federal residential solar credit) is included — it expired December 31, 2025. State incentives are not reflected in these pre-computed figures; use the interactive calculator to enter specific rebate amounts.
Calculate With Your Actual Numbers
The figures above use statewide averages. Enter your actual monthly bill, any Pennsylvania rebate amounts, and your offset target in our interactive calculator for a personalized estimate.
Frequently Asked Questions — Solar in Pennsylvania
Compare Other States
Estimates are based on NREL PVWatts v8 production data, EIA 2025 electricity rates, and LBNL 2024 installed cost benchmarks. Actual savings vary by roof pitch, shading, utility rate structure, and local permit costs. This is not financial advice. Consult a licensed solar installer before making any purchasing decision.