Federal solar credit ended Dec 31, 2025
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Solar costs · Pennsylvania

Solar Panel Cost in Pennsylvania

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

A typical Pennsylvania home uses 817 kWh a month[1] of electricity. Covering that with solar takes a system of about 7.2 kW est.[1,2], which costs roughly $22,000 to $30,000 est.[1,2,3] before incentives at the state's median installed price. With Pennsylvania's average residential price of 21.13¢ per kWh[4], our model puts payback at about 11 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

On this page [ 7 ]

Pennsylvania solar at a glance

Average electricity price21.13¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use817 kWh/mo[1]2024 average
Solar output per kW1,356 kWh/yr[2]PVWatts estimate for Philadelphia
Median installed price$3.60/W[3]Estimate, before incentives
Typical system7.2 kWSized to cover 100% of use
Typical price$25,900Estimate, before incentives
Year-1 savings$2,060Estimate
Payback11 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Pennsylvania net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Pennsylvania by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Pennsylvania.

SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4005,420$1,15011
6 kW$21,600$21,6008,140$1,72011
8 kW$28,800$28,80010,850$2,07012
10 kW$36,000$36,00013,560$2,07015
12 kW$43,200$43,20016,270$2,07017

Incentives that lower the price in Pennsylvania

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026

All Pennsylvania incentives, including utility and local programs →

How Pennsylvania utilities credit your solar

Pennsylvania's Alternative Energy Portfolio Standards Act itself requires that excess generation from net-metered customer-generators (residential systems up to 50 kW) receive full retail value for all energy produced on an annual basis, and directs the PUC to write the technical and net metering rules. How utilities pay out year-end surplus (the PUC uses the price-to-compare) comes from PUC rules and practice, not the statute.[5]

We have not added every Pennsylvania utility yet, so the estimates on this page use the state-level rule: Pennsylvania net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).

Full Pennsylvania net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in Pennsylvania?

At the state median installed price of $3.60 per watt est.[3], a 7.2 kW est.[1,2] system that covers a typical home's use costs about $25,900 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Pennsylvania?

For a cash purchase at the state's average electricity price of 21.13¢ per kWh[4], our model estimates about 11 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[7] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

sources

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Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
  2. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. Alternative Energy Portfolio Standards Act, Act of Nov. 30, 2004, P.L. 1672, No. 213, Section 5 (as amended by Act 35 of 2007) - Pennsylvania General Assemblypalegis.us · checked Nov 5, 2026
  6. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  7. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026

State data last re-checked November 5, 2026.

Change log

  1. What the rule says updated to “Excess generation from net-metered customer-generators shall receive full retail value for all energy produced on an annual basis.” (Alternative Energy Portfolio Standards Act, Act of Nov. 30, 2004, P.L. 1672, No. 213, Section 5 (as amended by Act 35 of 2007) - Pennsylvania General Assembly).