How Do We Rate Solar Companies?
TL;DR: We rate solar installers from 1 to 5 stars to help you pick the best one. High stars mean they’re really good at what they do and treat their customers right. Low stars? Not so much. We give credit to companies that have been around for a while, know what they are doing, have a high standard of workmanship and equipment, don’t hire subcontractors to keep the bar of solar installation quality high and have good local reviews from real customers (yes, we check if the reviews are actually real or fake). Companies we choose as top-rated know and can help with federal and local solar incentives to help you save, have good financing plans, and guarantee their work. We’re here to point you to the solar companies that truly rock, making going solar easy and worthwhile for you.
Check our detailed review process here.
Is It Worth Going Solar in PA?
Yes, it is worth going solar in Pennsylvania. Here are some reasons why:
- Despite Pennsylvania’s reputation as a leading natural gas, coal, and electricity supplier, the solar energy sector has been gaining momentum. In 2022, solar energy, including both utility-scale and small-scale solar photovoltaic (PV) installations, produced 11% of the state’s total renewable electricity.
- The cost of traditional electricity in Pennsylvania is higher than the national average, making solar power an attractive and cost-effective alternative. The average cost to install solar panels is $15,173 in Pennsylvania after the federal solar investment tax credit ($21,676 before the tax credit). Going solar in the Keystone State is about 9% cheaper than the national average. Over 25 years, the estimated average net savings for going solar in Pennsylvania equals $23,634.
- There are numerous incentives, tax credits, and the decreasing cost of solar panel systems, making going solar in Pennsylvania a worthwhile investment.
How much does solar save homeowners in Pennsylvania?
Solar power can save you quite a lot on energy bills if you do it right. Here are some key points:
- Electricity Bill Savings: The U.S. Energy Information Administration reported an average electric tariff of 17.53 cents/kWh in Pennsylvania in March 2024. At this price, 8,000 kWh of solar generation can achieve $1,450 in annual energy bill savings.
- Solar Renewable Energy Certificates (SRECs): This program enables Pennsylvanians to sell the SRECs that their panels generate. In 2021, the going rate for these credits was between $24 and $41. At the lower end of this range, an 8-kilowatt (kW) system that generates 8 MWh per year could make an extra $192 per year from selling SRECs.
- Federal Solar Tax Credit: Eligible homeowners can deduct up to 30% of their solar power system’s costs from their total tax liability for the year of installation.
These savings, combined with state and federal incentives, make solar power a cost-effective choice for homeowners in Pennsylvania.
*However, the exact savings can vary depending on the specifics of the solar installation and the homeowner’s energy usage.
What is the average cost of going solar in Pennsylvania?
The average cost of installing a solar panel system in Pennsylvania varies depending on the size of the system and other factors. Here are some key points:
- As of March 2024, the average cost of a solar panel system, including installation, is $2.96 per watt. For a 5 kW installation, this comes out to about $14,787 before incentives1. However, prices can range from $12,569 to $17,0051.
- After applying the federal solar investment tax credit, the average price drops by 30%.
- The average cost per watt is $3.05 in Pennsylvania.
- The average payback period for a solar power system is 8 years for Pennsylvania residents who pay in full upfront2.
- Over 25 years, the estimated average net savings for going solar in Pennsylvania equals $23,634.
*Please note that these are average costs and actual costs can vary depending on various factors such as the specific solar installation, the homeowner’s energy usage, and available incentives. It’s always a good idea to get a precise estimate from a solar professional.
Pennsylvania Solar Incentives
- Net Metering: This policy allows you to sell excess solar electricity back to the utility at the same price at which you would buy it. PECO Energy offers the top utility net metering program in Pennsylvania.
- Solar Renewable Energy Certificates (SRECs): This program enables Pennsylvanians to sell the SRECs that their panels generate. In 2021, the going rate for these credits was between $24 and $41.
- Federal Solar Tax Credit: Also known as the Investment Tax Credit (ITC), this federal incentive allows you to deduct up to 30% of your solar power system’s costs from your total tax liability for the year of installation1.
These incentives make solar power a cost-effective choice for homeowners in Pennsylvania.
What are the Eligibility Criteria for SRECs in Pennsylvania?
The eligibility criteria for Solar Renewable Energy Certificates (SRECs) in Pennsylvania are as follows:
- System Type: Only photovoltaic systems are eligible for SRECs in the Pennsylvania market. Solar thermal systems are not eligible.
- System Location: The system must be located within Pennsylvania. In 2017, Pennsylvania passed Act No. 40, which restricted geographical eligibility for the PA SREC market to Pennsylvania-sited solar photovoltaic systems effective October 30, 2017.
- Meter Readings: Facilities less than 15 kW DC capacity, interconnected prior to May 18, 2017, that did not receive funding from the PA Sunshine program, and do not have a Revenue Grade Meter may be eligible to produce SRECs from estimated generation based on PV Watts estimates. Systems interconnected on or after May 18th, 2017, must report their generation from an inverter or dedicated meter.
- Registration: The owner must register the system with the Pennsylvania Department of Environmental Protection. The eligibility start date of a system is based on the month of application to the PennAEPS.
*The exact eligibility criteria can vary. It’s always a good idea to consult with a solar professional or the relevant regulatory body to get precise information.
Are There Any Community Solar Programs in Pennsylvania?
Pennsylvania law currently does not allow community solar, but there is a bill moving through the legislature to change this. But there are discussions going to bring it to the state legislature.
Community solar allows renters and people who can’t afford large upfront costs to go solar. You can purchase or lease a “share” in a community solar project or start a project with your neighbors.
Solar Energy Program (SEP): The Solar Energy Program (SEP) provides financial assistance in the form of grant and loan funds to promote the use of solar energy in Pennsylvania.
*It’s always a good idea to consult with a solar professional or the relevant regulatory body to get precise information.
