Solar energy is an increasingly popular choice for homeowners, renters, and businesses in Pennsylvania. Community solar, or solar farms, can supply clean, renewable energy to a large group of subscribers in the area while saving them a guaranteed 10% on their utility bills. As the state looks to increase solar power generation from 1% to 10% by 2030, various incentives are helping to make the transition to solar power more accessible and financially beneficial for everyone.
What are Pennsylvania Solar Incentives?
Pennsylvania offers a range of solar incentives designed to make solar power more affordable and appealing. These incentives come in various forms, including tax credits, rebates, and performance-based incentives. They are part of a broader effort by the state to encourage renewable energy adoption, reduce carbon emissions, and promote sustainable energy solutions.
PA Solar Power Incentives
Pennsylvania provides several solar incentives to reduce the upfront costs and improve the return on investment for solar power systems. Here are the primary incentives available:
Solar Renewable Energy Certificates (SRECs)
SRECs are a significant incentive in Pennsylvania. For every megawatt-hour (1,000 kWh) of electricity your solar system produces, you earn one SREC. These certificates can be sold on the market to utilities required to meet renewable energy targets, providing a steady income stream for solar system owners.
For community solar subscribers, the benefit is reflected in two bills. The first bill comes from the utility company applying the solar credits, typically resulting in a very low balance. A second bill from the subscriber’s community solar provider will show the value of the credits for that particular month, along with the 10% discount.
Federal Solar Investment Tax Credit (ITC)
While not unique to Pennsylvania, the federal ITC is a substantial incentive for solar installations. This tax credit allows solar energy system owners to deduct up to 30% of their solar installation costs from their federal taxes. The credit can be claimed in the first year of installation. If the full credit cannot be claimed in the first year, the remaining balance can be rolled over for five years. Thanks to the Inflation Reduction Act (IRF), the ITC benefit has been extended to 2034.
Net Metering
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. In Pennsylvania, if your solar system produces more electricity than you consume, the excess power is sent to the grid, and you receive credits on your electricity bill equal to the full retail price. Any surplus credits can be rolled over to the next month. Nonresidential solar systems can participate in net metering up to 3,000 kW.
PA Solar Incentives – FAQs
Does PA have a solar tax credit?
Pennsylvania does not have a state-specific solar tax credit.
Is solar worth it in PA?
Absolutely! The development of solar projects is increasing in Pennsylvania. Solar systems produce clean, renewable energy without hurting the environment. Solar energy generation reduces our dependence on fossil fuels, which produce harmful greenhouse gas emissions. When you subscribe to community solar, you lower your monthly bill while fighting climate change.
How much does it cost to go solar in PA?
For those interested in community solar projects in PA, there are no upfront costs! You won’t need to install any equipment on your home or business to participate. All you need is a utility account. As a subscriber to community solar, you can save a guaranteed 10% on your electricity bill. There are no subscription fees or long-term contracts to sign.
Is Pennsylvania a good state for solar power?
Of course! Pennsylvania’s commitment to reducing carbon emissions and promoting renewable energy supports the adoption of solar power. With supportive policies and incentives and falling costs of solar technology, PA is primed for the development and expansion of solar energy solutions.
Explore Pennsylvania Solar Options with US Light Energy
U.S. Light Energy is a New York-based distributed generation energy development company specializing in community solar facilities and renewable energy solutions in Pennsylvania. Whether you rent or own your home, it’s easy to sign up for community solar. All you need is an account with a utility company. If service isn’t available in your area, don’t worry! We’re developing projects across Pennsylvania and will work to connect you as fast as possible. Meeting PA’s ambitious goal of 10% solar power generation by 2030 will require approximately 124 square miles of land. If you’re a landowner, there has never been a better time to lease your land for solar development. With our unique feasibility process, we can analyze multiple aspects of your property to drive the most value per acre. Apply today to learn if your land qualifies for solar development! U.S. Light Energy is leading the charge for a new generation.