November 7, 2022

Benefits of Solar Energy for Homeowners in Pennsylvania

Reduce your home energy cost

As a resident of Pennsylvania, you may be eligible for the Solar Energy Program. Solar energy offers many benefits for homeowners in Pennsylvania, including lower energy bills, increased home value, and protection from rising utility rates.

A clean, renewable, and sustainable energy source, solar power is proven to be a smart investment. Improvements in efficiency, technology, and care have resulted in significant cost reductions over the last ten years, making the switch to solar now the smarter choice to make. After paying for the upfront cost of the hardware, it will take about 10 years to recoup your initial investment. After which, you will be saving significantly on your electricity bill.

Get Tax Credits in PA for Renewable Solar Energy Systems

The average family in Pennsylvania spends a lot of money on energy and consumes an average of 10,000 kWh annually. Homeowners can make their homes more efficient to save in the long run. Some projects are more expensive than others. Fortunately, there are financial incentives for renewable energy and energy efficiency. This includes the following tax credits for your residential solar system:

  1. Federal Solar Investment Tax Credit (ITC): 26% federal tax credit is available for purchased home solar systems installed by year-end.
  2. Solar Renewable Energy Credits (SRECs): Compensation per kilowatt-hour (kWh) produced by the system is based on market value. The average price for an SREC in Pennsylvania is ~$40. A solar array in Philadelphia generates 3-5 SRECs annually, which nets homeowners around $225 annually. In Pennsylvania, customers with solar systems must apply to the Public Utility Commission to be qualified. More here from PECO.
  3. Philadelphia Solar Rebate Program: Philadelphia residents may qualify for a $200 rebate for every kilowatt (kW) of solar power installed.

What do solar energy systems typically cost for a PA homeowner?

According to utility company PECO, solar panels for homes tend to run from $30,200 - $36,900 if your typical energy bill is ~$150 per month. This estimated upfront cost is before any financial incentives such as the ones listed above.

You get 26% off via the Federal Solar Investment Tax Credit, which in this example can save you up to $9,600.

You can then save even more through PA programs, as well as local programs such as if you live in Philadelphia. This may be around $225 per year. And if you are lucky enough to live in Philadelphia (or another municipality with a funded solar program), you can get another approximately $1,700 - $2,500 per year depending.

After incentives, you will still have an estimated total cost of $20,000 - $24,800, giving you an approximate payback period of half of the life of the solar energy system, or 12.5 years (the "payback period").

Keep in mind that this all depends on your home, your usage, and the amount of sunlight you get (e.g., Full Sun, Partial Sun, or Mostly Shaded). Feel free to use this calculator from PECO for more specifics, or get connected to a vetted solar provider today.

Install at no upfront cost in 2 ways

You can do this either through a Power Purchase Agreement, where a PA solar energy company installs it on your home and then sells the power back to you.

Another way is through the PA Sunshine Program for low-income homeowners.

Support your community

Imagine if you could attract attention from prospective customers that are genuinely interested in your product or service. Going solar for your home will ensure that the dollars you spend on electricity stay right here in your city. This, in turn, supports the local workforce with jobs that cannot be outsourced.

Combat climate change

Solar is part of a solution to climate change, which significantly contributes to cleaner air and water and reduced rates of asthma. Solar energy cuts carbon emissions, assisting in meeting carbon neutrality goals while lowering your environmental footprint.

Find a solar company near you in PA:

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Posted by Jen Walters
Contributing author and happy homeowner with a solar energy system who cares about the climate and her children's health and comfort at home.

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