Is Solar Worth It in Pennsylvania in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Pennsylvania homeowners — without the federal ITC.
Cost Per Watt
$3.20
installed
Electricity Rate
$0.158
per kWh
Payback (No ITC)
16 yr
current reality
Payback (With 30% ITC)
11.2 yr
hypothetical
25-Year ROI
56%
return on investment
Incentive Breakdown — Pennsylvania
Available incentives for a typical 7kW residential solar system in Pennsylvania
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NonePennsylvania does not offer a state tax credit for solar installations.
SREC Market
~$175/yrPennsylvania has an active SREC market with values around $25/SREC.
Property Tax Exemption
No statewide property tax exemption for solar
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: SREC market value ~$175/year.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Pennsylvania
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.20/W
- Gross Cost
- $22,400
- Federal ITC
- $0
- Net Cost
- $22,400
- Annual Savings
- $1,399/yr
- Payback Period
- 16 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.20/W
- Gross Cost
- $22,400
- Federal ITC (30%)
- -$6,720
- Net Cost
- $15,680
- Annual Savings
- $1,399/yr
- Payback Period
- 11.2 years
Impact: Without the federal ITC, Pennsylvania homeowners face a 4.8-year longer payback period — paying $6,720 more out of pocket.
Net Metering Policy — Pennsylvania
How Pennsylvania compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Pennsylvania mandates full retail net metering for systems up to 50 kW for residential customers.
Cost Per Watt Benchmark — Pennsylvania
Pennsylvania Average
$3.20/W
National Average
$3.05/W
Typical 7kW System
$22,400
Pennsylvania's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Pennsylvania breaks even in 16.0 years. With the former 30% ITC, payback would drop to 11.2 years.
Without Federal ITC
16
years to break even
With Former 30% ITC
11.2
years to break even
Production Details
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