Pennsylvania has made a strong commitment to renewable energy. In total, Pennsylvania has devoted approximately $1.8 billion to solar energy projects in the state, according to the Solar Energy Industries Association. Additionally, Pennsylvania ranked 22nd in the U.S. for installed solar capacity. People looking to make a difference and perhaps save some cash in the long-run should explore solar panels in Pennsylvania.
Pennsylvania’s Solar
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
Electricity Costs in Pennsylvania
The cost of electricity across all sectors in Pennsylvania averages $0.96 per kWh. Although that figure is just slightly higher than the national average, it is a considerable jump from the state’s 2005 average of $0.08 per kWh. Currently, most of the electricity in the Keystone State comes from natural gas-fired and nuclear power plants, but increasing utility prices combined with Pennsylvania’s push for more clean energy may make solar energy more attractive to homeowners.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Pennsylvania Solar
Resources Library
Key Initiatives & Policies
The Pennsylvania Sunshine Solar Program was discontinued at the end of 2013 after providing $100 million in solar rebates, and Pennsylvania’s budget is still uncertain. However, Pennsylvania residents still have opportunities to save on solar energy. Additionally, the price of installing solar photovoltaic systems has continued to drop in Pennsylvania, adding to potential savings.
REBATES/INCENTIVES
According to Pennsylvania law, all electric distribution companies as well as electric generation suppliers must supply about 18 percent of their electricity using renewable energy resources and get some of their sales of electricity from solar PV systems by 2021. Related to this, one solar alternative energy credit means that a MWh of electricity was produced by a PV facility in the state. Incentives for solar energy producers vary based on the market, although the market price in 2015 for Pennsylvania-sourced solar renewable energy certificates (equivalent to a solar alternative energy credit) ranged from $32 to $55/MWh.
High Performance Building Incentives ProgramPennsylvania law supports renewable energy technologies, including solar PV systems. Incentives, including loan guarantees, loans, and grants, are available to small businesses in the state (those with no more than 100 employees) as well as individuals for constructing commercial buildings or homes. Residential loans/loan guarantees have a maximum of $100,000; commercial loans/loan guarantees have a maximum of $2 million; and for grants, the maximum is 10 percent of the cost of the project or $500,000, whichever is lower.
None for residential specifically
None for commercial specifically
POLICIES
There are four levels of interconnection in Pennsylvania that allow solar PV systems to be connected to the electricity grid. Level 1 is for systems that are 10 kW in capacity and lower; Level 2 is for two MW-capacity systems; Level 3 is for up to 5 MW in capacity, and Level 4 is for systems that do not qualify for the other three levels. The application fee is $350 along with $2/kW of nameplate capacity.
Net Metering:Based on Pennsylvania law, net metering must be provided to residential customers who produce energy using solar PV systems. The maximum capacity for residential systems is 50 kW; for commercial systems, it is 3 MW; and the maximum is 5 MW for emergency and micro-grid systems.
Public Benefits ProgramsThe five chief distribution utilities in the state of Pennsylvania created Sustainable Energy Funds to promote the development of solar energy and other types of renewable energy. These funds vary in amount, although the collective revenue of the funds through 2014 totaled about $99 million. Funds are moving toward an investment fund and revolving loan model to sustain the capital.
None for residential specifically
None for commercial specifically
TAX CREDITS
None
None for residential specifically
None for commercial specifically
TAX EXEMPTIONS
None
None for residential specifically
None for commercial specifically
Solar Panel Installers & Contractors in Pennsylvania
For Pennsylvania homeowners interested in solar panel installation, opportunities abound. With more than 669 businesses in the Pennsylvania solar industry, it’s important to vet your options before choosing a company. Interview contractors to determine how long they have been in the solar industry—the more experience the better—and find out the scope of their prior projects. It’s also helpful to inquire as to how they will handle billing with your current utility.
Here is a list of Pennsylvania solar companies to get you started.
Belmont Solar specializes in the design and installation of off-grid, hybrid and grid-tied solar energy systems.
Where it operatesGordonville, PA
Year of opening2001
Daflure offers solar system installation for residential and commercial buildings.
Where it operatesNew Cumberland, PA
Year of opening1979
Energy Professionals Insulation sells and installs a variety of residential solar energy options, from PVs to passive space heaters.
Where it operatesLock Haven, PA
Year of opening1980
Solar electricity, solar water heating, and solar pool heating system installations services are all available to Exact Solar customers.
Where it operatesYardley, PA
Year of opening2005
Granahan helps its customers switch to solar energy by designing and installing solar PV systems, discussing available incentives and securing necessary permits and paperwork.
Where it operatesPhiladelphia, PA
Year of opening1985
This Pennsylvania electric company can install solar panels on commercial buildings.
Where it operatesReading and Harrisburg, PA
Year of opening1995
RER specializes in renewable energy technology, including installation of solar energy, solar hot air and solar hot water systems.
Where it operatesReading, PA
Year of opening2009
With a mission to install solar as well as educate about clean energy, Solar States has completed more than 200 projects and impacted more than 1,000 students in area schools.
Where it operatesPhiladelphia, PA, as well as NJ and NY
Year of opening2008
SunLion Energy Systems specializes in solar panel installation in central Pennsylvania.
Where it operatesLancaster, PA
Year of opening1993
Additional Resources
The following resources will help you research solar energy options in Pennsylvania.
Discover the details of solar policies and solar energy incentives in Pennsylvania and across the country.
This chapter of the nonprofit American Solar Energy Society works to educate residents in the Mid-Atlantic region about renewable energy.
Find information about energy programs, cost-saving strategies, and statistics related to renewable energy in Pennsylvania from this state government office.
Keep updated on pending solar energy legislation, and stay abreast of current legislative issues in Pennsylvania.
Learn about pending solar energy legislation from the governing body in charge of Pennsylvania’s public utility regulation.
Explore U.S. government data and statistics surrounding solar energy in Pennsylvania.