Solar Incentives in Philadelphia, PA
Complete guide to solar tax credits, rebates, and incentive programs available to Philadelphia homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Philadelphia homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Philadelphia, PA.
Pennsylvania State Solar Incentives for Philadelphia Homeowners
Pennsylvania Solar Renewable Energy Credits
SRECPennsylvania's Alternative Energy Portfolio Standard creates demand for SRECs from residential solar installations.
Solar Energy Program Grants
RebateSome Pennsylvania utilities offer solar rebate programs for customers in their service territories.
Property Tax Exemption
Property TaxPennsylvania allows local jurisdictions to exempt solar energy systems from property tax increases.
Net Metering in Philadelphia, PA
Pennsylvania requires electric distribution companies to offer net metering for residential solar systems up to 50 kW. Credits are provided at the full retail rate.
Solar Renewable Energy Credits (SRECs) in Philadelphia
Pennsylvania has an SREC market driven by its Alternative Energy Portfolio Standard. Solar system owners earn one SREC per MWh and can sell them to utilities or on the open market.
Average SREC Price: $20-$40 per SREC
Tax Exemptions in Philadelphia
How to Claim Solar Incentives in Philadelphia
- Install your solar system: Work with a qualified Philadelphia solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Pennsylvania energy office or local Philadelphia utility to apply for available incentives.
- Set up net metering: Contact your utility in Philadelphia to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Philadelphia, PA
Philadelphia homeowners can take advantage of the 30% federal solar tax credit, plus 3 state-level incentive programs, net metering, and SRECs. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Philadelphia homeowners approximately $5.3k on a typical system. Combined with Pennsylvania state programs and SREC income, total savings over 25 years can reach $32k or more.
Pennsylvania requires electric distribution companies to offer net metering for residential solar systems up to 50 kW. Credits are provided at the full retail rate.
To claim the 30% federal ITC, Philadelphia homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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