06 Aug Pennsylvania Solar incentives, Tax Credit and Rebates 2022
Pennsylvania Solar Rebates and Incentives
Pennsylvania has a long and proud tradition of producing large amounts of energy, from early oil discoveries and abundant coal deposits to modern solar photovoltaic production. Speaking of energy, this state has a way to complete the task. Thanks to the government’s support policy, solar photovoltaic energy in Pennsylvania is easier than ever.
Pennsylvania has two main plans to back the development of residential solar photovoltaic systems, net metering and solar renewable energy certificates.
Net Metering in Pennsylvania
Like many other states, this is one of Pennsylvania’s most important solar policies because it controls how the residential system interacts with the grid. Net metering allows you to sell the excess solar power back to the utility company at the same price at the time of purchase. The ability to send electricity back to the grid is key because it allows homeowners to “store” their solar energy at the end of production and use it later when needed. PECO Energy provides Pennsylvania’s top utility net metering program.
Solar Renewable Energy Certificates (SRECs) of Pennsylvania
This program enables Pennsylvanians to sell SREC generated by their panels. As of the end of 2019, the current interest rate on these credits is approximately $24. At this rate, a Five-kilowatt (kW) system that generates 5 MWh per 12 months can earn an extra $120 per year with the aid of selling credits on the SREC market.
The Federal Solar Tax Credit of Pennsylvania
Don’t forget the federal solar incentives! With the help of Federal Investment Tax Credits (ITC), you can reduce the cost of photovoltaic solar systems by 26%. Keep in mind that ITC is only available to people who purchase photovoltaic systems directly (through cash purchases or solar loans), and you must have enough income to receive a meaningful tax credit.