Pennsylvania Solar Calculator

Enter your utility and monthly bill — get system size, PA SREC income, PECO/PPL net metering savings, sales tax exemption, and 25-year savings.

Your Pennsylvania solar inputs

Monthly electric bill?

Electric utility?

System size?

Pennsylvania solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 9.2 kW

Monthly usage875 kWh/mo

Annual production (PA 4.0 PSH)9,344 kWh/yr

Net metering savings$1,495/yr

PA SREC income (~9.3 SRECs/yr)$374/yr

Total annual benefit$1,869/yr

Gross system cost$20,880

Sales tax exemption (6%)~$1,253

Federal ITC (30%)-$6,264

Net cost after ITC$14,616

Property tax exemption (est.)$6,264

Payback period7.8 yrs

25-year savings$46,720

PA SRECs trade at ~$40/SREC through GATS. Register with PJM-GATS after installation to earn SREC income. Sales tax exemption applies to solar equipment purchases — confirm with your installer.

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How to Use This Calculator

Enter your bill and select your utility

PECO Energy serves Philadelphia and surrounding counties (Montgomery, Bucks, Chester, Delaware, Burlington). PPL Electric serves central and eastern Pennsylvania — Allentown, Bethlehem, Harrisburg, Scranton, and Wilkes-Barre. Duquesne Light serves Pittsburgh and Allegheny County. All three utilities offer net metering at retail rate for residential solar customers.

Pennsylvania SREC program

Pennsylvania's Alternative Energy Portfolio Standard (AEPS) requires utilities to source a portion of electricity from solar — creating demand for PA Solar Renewable Energy Certificates. Each 1,000 kWh (1 MWh) of solar production earns one SREC worth approximately $40. Register your system with PJM-GATS after installation. Pennsylvania SRECs have historically traded higher than neighboring Virginia due to stronger RPS requirements.

Sales tax exemption

Pennsylvania exempts solar energy equipment from the state's 6% sales tax. On a typical 8-10 kW system, this saves $1,200-1,600 at installation — a benefit that is automatically applied by qualified solar installers. No application is required; your installer handles the exemption at purchase.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.0 PSH × 365 × 0.80 efficiency ÷ 1000 Net Metering Savings = Annual Production × Retail Rate (PA credits at retail) PA SREC Income = (Annual Production ÷ 1000) × $40/SREC Total Annual Benefit = Net Metering Savings + SREC Income Gross Cost = System kW × 1000 × $2.61/W Sales Tax Saving = Gross Cost × 6% (PA exemption — already in price) ITC Credit = Gross Cost × 30% Net Cost = Gross Cost − ITC Credit Payback = Net Cost ÷ Total Annual Benefit

Pennsylvania averages 4.0 peak sun hours (PSH) statewide — Philadelphia gets 4.3 PSH, Pittsburgh gets 3.8, and the Lehigh Valley averages 4.1. Pennsylvania's cloudier climate compared to southern states is offset by higher electricity rates (PECO at 16¢/kWh is among the highest in the region) and strong SREC values (~$40). At $2.61/W, Pennsylvania installation costs are near the national average.

Example

Linda — Philadelphia PECO customer

Linda lives in Philadelphia (PECO territory) paying $140/month at $0.16/kWh. She wants an 8 kW system to offset her high electricity costs.

Monthly bill$140 (PECO, $0.16/kWh)

System8 kW, no battery

LocationPhiladelphia, PA (4.3 PSH)

Result

Annual production~9,344 kWh/yr

Net metering savings~$1,495/yr

PA SREC income (~9 SRECs)~$373/yr

Total annual benefit~$1,868/yr

Gross system cost~$20,880

Sales tax exemption (6%)~$1,253 saved

Federal ITC (30%)-$6,264

Net cost after ITC~$14,616

Payback period~7.8 years

25-year savings~$46,700

Linda's high PECO rate of 16¢/kWh combined with $40 SRECs produces one of the best payback periods in the mid-Atlantic — under 8 years. The sales tax exemption saved her another $1,253 at purchase. Pennsylvania's combination of high rates, strong SRECs, and tax exemptions makes it a top-10 state for solar economics despite its cloudier climate.

FAQ

How do Pennsylvania SRECs work and what are they worth? ▼

Pennsylvania's AEPS (Alternative Energy Portfolio Standard) requires utilities to source solar electricity — creating demand for SRECs. Each 1,000 kWh of solar production earns one SREC, currently worth approximately $40. An 8 kW system in Philadelphia produces ~9 SRECs/year = ~$373/year in additional income. To earn SRECs: (1) Install your system; (2) Register with PJM-GATS after interconnection is approved; (3) SRECs appear in your GATS account monthly; (4) Sell through a SREC broker or aggregator. Pennsylvania SREC prices are higher than neighboring states because PA's RPS solar carve-out is well-enforced. SREC prices fluctuate — $40/SREC is an approximation; actual prices may be higher or lower depending on market conditions.

Does Pennsylvania have a sales tax exemption for solar? ▼

Yes — Pennsylvania exempts solar energy equipment from the 6% state sales tax. This applies to solar panels, inverters, racking, and other system components. The exemption is applied at point of sale by your installer — you do not need to apply separately. For a typical 8 kW system costing ~$21,000, the sales tax exemption saves approximately $1,250. This exemption is automatic and applies to both system hardware and installation labor for solar installations.

How does Pennsylvania net metering work? ▼

Pennsylvania's net metering law (Act 129) requires PECO, PPL, and Duquesne Light to credit solar customers at the full retail rate for exported electricity. Credits accumulate monthly and roll forward. At annual true-up, remaining credits are paid out at the utility's average wholesale rate (typically 30-50% of retail). For maximum savings, try to consume your solar production directly — size your system so production matches annual consumption closely rather than oversizing and exporting large amounts.

Is solar worth it in Pittsburgh despite less sunshine? ▼

Pittsburgh gets approximately 3.8 PSH — one of the lower values for a major US city. However, solar is still viable because: (1) Duquesne Light's rate of 15¢/kWh means every kWh avoided is valuable; (2) PA's $40 SREC program adds income regardless of electricity rate; (3) The 30% ITC significantly reduces upfront cost; (4) Property tax and sales tax exemptions apply equally. Pittsburgh solar typically has a 10-13 year payback vs. 7-9 years in Philadelphia — still profitable over a 25-year system life. Proper roof orientation matters more in cloudy climates — a south-facing 30° pitch in Pittsburgh produces 15-20% more than an east/west split system.

Does Pennsylvania have a property tax exemption for solar? ▼

Pennsylvania's Clean and Green program and related statutes provide property tax benefits for solar installations, though the structure varies by county. Most Pennsylvania counties exempt or partially exempt solar systems from property tax assessment increases. Pennsylvania's average effective property tax rate is approximately 1.5%, making the exemption worth $200-400/year for a typical solar system. Contact your county assessment office to confirm the specific exemption policy in your municipality. Some townships have additional local tax exemptions for renewable energy systems.

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