Going Solar in Pennsylvania: Unlock Generous Incentives and Rebates
Solar energy production has skyrocketed in the Keystone State over the past five years. As electricity rates continue their yearly climb, investing in solar power systems is becoming an increasingly attractive option for Pennsylvania homeowners. According to the U.S. Energy Information Administration (EIA), the average residential electricity rate in Pennsylvania sits at a steep 17.63 cents per kilowatt-hour (¢/kWh) – a whopping 9% above the national average. It’s no wonder so many are embracing renewable energy sources like solar to slash their utility costs and carbon footprint.
Installing solar panels proves an excellent long-term investment for Pennsylvania homeowners. Not only can they reap massive savings by generating their own clean electricity, but they can also take advantage of lucrative solar incentives, rebates, tax credits, and other financial benefits offered by the state.
Pennsylvania’s Solar Incentives: Unlocking Serious Savings
Renewable Portfolio Standards (RPS)
Pennsylvania is a leader in promoting renewable energy through its robust Renewable Portfolio Standards. These standards require utilities to source a specific percentage of their electricity from renewable sources like solar or face penalties. As a result, Pennsylvania utilities actively incentivize homeowners to go solar.
Solar Carve-Out
A key component of PA’s RPS is the solar carve-out, which mandates that a portion of the state’s renewable energy must come specifically from solar power by set deadlines. State legislators recently raised the solar carve-out target from 0.5% to an ambitious 5.5%.
Net Metering
Pennsylvania’s net metering policy is a huge boon for solar homeowners. Net metering allows you to connect your solar system to the grid and receive credits for any excess electricity you generate. You can then use those credits to offset the cost of power drawn from the utility when your panels underperform.
Interconnection Standards
Standardized interconnection rules across Pennsylvania make it easier and more affordable to connect renewable systems like solar to the grid and participate in net metering.
Solar Rebates
Many Pennsylvania utilities offer attractive upfront rebates to help homeowners cover the cost of going solar. Rebates typically come in the form of a lump sum payment or discount applied to your system’s total installation costs by your solar provider.
Performance-Based Incentives (PBIs)
Through its Solar Power Performance Payments program, Pennsylvania incentivizes solar production by compensating homeowners based on the actual kilowatt-hours (kWh) or BTUs their system generates. You’ll earn valuable Solar Renewable Energy Credits (SRECs) for the clean power your panels produce, which can be sold on an open market.
The Federal Solar Tax Credit
On top of Pennsylvania’s solar incentives, you may qualify for the federal government’s Investment Tax Credit (ITC). The ITC allows you to deduct 30% of your total solar system costs from your federal taxes through 2032 when installing a new residential solar array. (The credit then steps down annually until its expiration in 2035.)
As you can see, Pennsylvania offers a wealth of financial incentives that make investing in solar power more affordable and rewarding than ever for homeowners. With electricity rates on the rise, now is an ideal time to explore your solar options and start generating clean, cheap energy from the sun!
