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Pennsylvania Solar Incentives: All You Should Know
Are you thinking of going solar in Pennsylvania? Now is the right time! Pennsylvania solar incentives make transitioning to solar energy convenient by reducing high upfront installation costs. The state offers several rebates to help homeowners and businesses save money while embracing clean, renewable energy. There are ways to offset the cost of your solar installation, including tax credits, rebates, and solar renewable energy certificates (SRECs). You will not only save on your energy bills but also help improve the environment by reducing your carbon footprint.
In this article, we’ll look at the various solar incentives in Pennsylvania, how they work, and how you can take full advantage of them. Whether you’re a homeowner looking to save money on electricity or a business looking to go green, understanding these incentives is the first step toward a brighter, more sustainable future.
What are the best solar incentives in Pennsylvania?
As a Pennsylvania homeowner, you have access to some beneficial incentives that can significantly increase your return on investing in solar panels. The solar tax credit and the state’s SRECs program are some of the most effective incentives to bring down your solar installation cost.
Pennsylvania Solar Renewable Energy Certificates (SRECs)
The Pennsylvania Solar Renewable Energy Certificates (SRECs) program motivates homeowners and business owners to invest in solar energy systems by allowing them to earn one SREC for every megawatt-hour (MWh) of power their solar system produces. Since 1 MWh equals 1,000 kilowatt-hours (kWh) and the average family in Pennsylvania utilizes approximately 846 kWh per month, a solar system powering a standard home may generate up to 10 SRECs per year.
Furthermore, owners may earn cash by selling these SRECs on the open market. SRECs are tracked and registered in the PJM Generation Attribute Tracking System (GATS), along with other Alternative Energy Credits.
Moreover, to earn SRECs, solar energy system owners must apply to the Pennsylvania Public Utility Commission’s (PUC) Alternative Energy Credit Program to be certified as a qualifying alternative energy plant. Once approved, they can register their solar system on the GATS trading network, allowing them to earn and sell SRECs to interested purchasers. This scheme makes solar energy investment more appealing by providing an extra revenue source.
Homeowners Energy Efficiency Loan Program (HEELP)
Pennsylvania’s Home Energy Efficiency Loan Program (HEELP) provides an exclusive incentive for energy-efficiency modifications. Eligible homeowners can get loans ranging from $1,000 to $10,000 at a low 1% interest rate over ten years, with no extra fees for early repayment. The loan money can be used for a variety of energy-saving improvements, such as air sealing, insulation, ducting upgrades, energy-efficient windows and doors, heating and cooling system repairs or replacements, and roof replacements.
However, income limits for HEELP eligibility vary by family size, ranging from $53,450 per year for an individual to $100,800 for a household of eight. The program intends to make energy efficiency modifications more affordable for Pennsylvania residents, allowing them to save money on their energy bills while upgrading their residences.
High Performance Building Program (HPB)
Pennsylvania’s High Performance Building Program (HPB) provides loans and incentives to help develop or renovate high-performance buildings. HPB grants cover 10% of total qualified construction or remodeling expenditures up to $500,000. Also, homeowners can qualify for fixed-interest loans of up to $100,000.
Eligible projects must meet or exceed requirements such as the National Green Building requirements (NGBS), Green Building Initiative (GBI) Green Globes Standards, and the United States Green Building Council (USGBC) LEED Gold Standard. This initiative helps businesses and individuals develop more energy-efficient and ecologically friendly structures, making green construction and renovation cheaper and more accessible throughout Pennsylvania.
Is net metering available in Pennsylvania?
One of the best solar panel incentives in Pennsylvania is net metering, which you may take advantage of if you connect your system to the grid. When you send extra energy from your solar panels back into the grid, you get credits under net metering. Your utility will apply the credits to your bill when you need to use the grid to get electricity when the sun isn’t shining. With solar panels, net metering ensures that you owe very little or nothing for electricity.
As long as your system generates 100% of the annual utility electricity demand, you will receive credits under Pennsylvania’s net metering scheme at the retail rate of electricity for each kWh of electricity produced. The “price-to-compare,” which represents the generation and transmission components of the utility’s retail rate but does not account for distribution, will determine how much credit you receive if, over a year, you send more power to the grid than you demand.
How does the federal solar tax credit work in Pennsylvania?
One of the primary incentives available to Pennsylvanians and Americans who buy solar systems is the Solar Investment Tax Credit (ITC). Installing a solar panel system enables you to claim a 30% federal income tax deduction on the project’s total cost. For the year that you install your solar system, you can only claim the credit once. If the credit amount isn’t fully utilized, the remaining amount can be carried forward for a maximum of five years. However, the Trump administration has decided to end the FTC on December 31, 2025. Elimination of tax credit may lead to high installation costs and a long solar payback period.
Is it worth going solar in Pennsylvania?
Investing in solar energy in Pennsylvania can be a smart and sustainable decision. Going solar in Pennsylvania is a wise investment considering the various incentives and tax credits. Furthermore, if you go solar in 2025, you can take advantage of the federal solar tax credit, which lets you offset from federal taxes 30% of the cost of installing a solar energy system.
However, it is essential to remember that the advantages of solar power can differ depending on your roof’s size and orientation, how much electricity you currently use, and the particular solar programs offered in your area. A local solar installer in PA, like Solar SME, can assist you in going solar with maximum savings.
So, get a FREE Quote for your solar savings in Pennsylvania and start your solar journey.
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