✅ Federal Incentives
All federal benefits apply to entities in Pennsylvania.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Solar Renewable Energy Credits (SRECs)
Pennsylvania offers a Solar Renewable Energy Credit (SREC) program, allowing homeowners to earn one SREC for every 1,000 kWh of electricity their solar system generates. These credits can be sold to utilities to meet renewable energy standards. SREC prices vary but typically range from $20 to $60.
⚡ High Performance Building Program (HPB)
The HPB provides grants and loans for the construction or renovation of high-performance building projects. Grants can cover up to 10% of project costs or $500,000, whichever is less. Loans of up to $100,000 are available for eligible projects.
⚡ Homeowners Energy Efficiency Loan Program (HEELP)
HEELP offers loans up to $10,000 at interest rates as low as 1% for energy-efficient home improvements. Eligible applicants must meet certain income requirements.
✅ Utility Incentives
⚡ Net Metering
Pennsylvania's net metering policy allows solar system owners to offset electricity costs by sending excess power back to the grid. Credits are earned at the retail rate of electricity for each kWh produced up to 100% of annual electricity demand. Excess generation is credited at the utility's "price-to-compare" rate.
✅ Local Incentives
⚡ Philadelphia Solar Rebate Program
Philadelphia residents may qualify for a $200 rebate for every kilowatt (kW) of solar power installed. To be eligible, systems must be installed within city limits and meet certain requirements.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Pennsylvania offers a combination of federal incentives, state programs, utility rebates, and local incentives to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.