Solar energy is on the rise in Pennsylvania, with the state pushing for more sustainable solutions that align with environmental goals. If you’re a homeowner or business owner, Pennsylvania solar incentives play a crucial role in making the switch to solar more affordable.
Did you know solar power is becoming a significant part of Pennsylvania’s energy landscape? As solar adoption rates increase, the impact on the state’s economy grows. In 2024, these incentives, tax credits, and rebates continue to make solar installations more feasible and cost-effective.
In this article, you’ll learn about various federal, state, and local incentives available that can reduce the cost of going solar and their additional benefits. Let’s dive into the details of each incentive, how to apply, and their impact on solar installations.
Key Takeaways
- Solar energy is growing in popularity in Pennsylvania, with incentives playing a key role
- Incentives, tax credits, and rebates continue to make solar more affordable in 2024
- Explore different financing options and incentives to maximize solar installation savings
Federal Solar Tax Credit
Federal Solar Investment Tax Credit (ITC)
The Federal ITC helps cut costs by giving you a sweet 30% tax break on your solar system. Sadly, this rate is set to decrease. So, make the move now!
How to Apply For the Federal ITC?
Claiming the ITC is simple. Just follow these steps:
- Check eligibility: Install your solar system between 2022-2024.
- Keep records: Save all receipts and documents related to your solar project.
- Fill out forms: Complete IRS Form 5695 and submit it with your taxes.
- Meet deadlines: File before the tax season deadline (usually April 15).
And remember, talk to a professional for tax advice, ensuring you cash in on all the benefits!
Pennsylvania Solar Incentives
If you’re looking to go solar in Pennsylvania, it’s important to check out these financial incentives to save on your new solar system.
Pennsylvania Sunshine Program
The Pennsylvania Sunshine Program offers rebates to residential and commercial solar installations. To qualify, you must meet eligible system and installation requirements. Just keep in mind that funding is limited, so apply soon!
Solar Renewable Energy Credits (SRECs)
By generating solar energy, you can create Solar Renewable Energy Certificates (SRECs). Sell them on the market to boost your earnings! In Pennsylvania, SRECs typically bring in around $40 each.
Philadelphia Solar Rebate Program
The Philadelphia Solar Rebate Program offers additional rebates for city residents with solar systems. Save $0.20 per watt on residential installations and $0.10 per watt on commercial ones. To qualify, ensure your project meets the program requirements.
Pennsylvania Net Metering
Did you know that in Pennsylvania, net metering lets you sell your excess solar power back to the grid? It’s a great way to save money on your utility bills. You’ll get credits on your account for every kilowatt-hour (kWh) of solar energy you produce but don’t use. So when your solar panels make more electricity than you need during sunny days, you send it back to the grid and receive credits for it!
As for the details, Pennsylvania’s net metering policy sets the compensation rate for excess solar energy. This means you’ll be paid at a predefined rate for the solar power you export to the grid. So, you’re not only helping the environment but also saving money on your electric bill.
Solar Loans and Financing Options in Pennsylvania
High Performance Building Program (HPB)
The High Performance Building Program (HPB) offers financial help for building or updating to high energy-efficiency standards. Projects can include solar installations and energy-efficient retrofits.
Homeowners Energy Efficiency Loan Program (HEELP)
The Homeowners Energy Efficiency Loan Program (HEELP) provides low-interest loans for energy improvements like solar installs. Pennsylvanians can improve energy efficiency and save money over time.
Solar Loans vs. Solar Leases
Solar loans give you the chance to own a solar system, with several advantages:
- Take advantage of Solar Investment Tax Credit (ITC)
- Boost your property value
But loans also entail upfront costs and maintenance responsibilities.
Solar leases let you use a solar system without buying it:
- Low or no upfront costs
- The leasing company handles maintenance
However, you’ll miss out on tax credits and higher property value.
Choose the option best suited to your needs and start enjoying solar energy in Pennsylvania!
Long-Term Benefits of Going Solar
Solar power can bring long-term rewards for you. Let’s look at some.
Cost savings over time
Over the years, solar energy helps you save big on energy bills. For example, if your monthly bill is $100 and solar cuts it by 80%, that’s an annual saving of $960. Just think of what you’d save in 10 or 20 years! The more the sun shines on your panels, the more you save.
Environmental impact
Switching to solar helps protect our planet. It cuts down your carbon footprint and reduces other harmful emissions. So when you go solar, you’re playing a part in keeping the air clean and preserving our precious resources.
Increase in property values
Homes with solar panels often fetch higher prices. Studies show that buyers find solar-powered homes more attractive. They know that they’ll save on energy costs and contribute to a greener world. So, by going solar, you’re not only saving money now but also making a smart investment for the future.
Conclusion: Is It Worth Going Solar in Pennsylvania?
So, is going solar in Pennsylvania a worthy investment? You’ll enjoy several benefits such as saving money on energy bills, receiving government incentives like tax credits, and reducing your carbon footprint. On top of that, you’ll have more independence from the grid, which can be helpful during power outages or natural disasters.
On the other hand, you’ll want to weigh the costs of solar panel installation. Keep in mind that many people consider homes with solar panels to be more valuable, which could increase your property’s worth.
To know if solar is the right choice for you and your home, explore the available solar power options and incentives. Reach out to solar panel installation companies, like Sunsoaked Solar, for quotes and a no-pressure, transparent consultation.
FAQs About Solar Incentives in Pennsylvania
Can you sell solar power back to the grid in Pennsylvania?
Yes, in Pennsylvania, you can sell solar power back to the grid. It’s called net metering. This helps lower your energy bills.
What is the average cost for solar panels in PA?
In PA, solar panels cost around $3.02 per watt. A standard 5 kW system may cost around $15,100 before incentives.
Do solar panels increase property taxes in PA?
No need to worry! In PA, solar panels don’t increase property taxes due to the state’s solar energy system tax exemption.
Does Pennsylvania have a solar rebate?
Indeed, Pennsylvania has a solar rebate. Philly residents can get $0.20 per watt for residential projects and $0.10 for commercial ones.