The state of Pennsylvania has an impressive history of energy self-sufficiency, dating all the way back to early discoveries of oil deposits and coal deposits. Despite its strong tradition of leading the energy industry in both innovation and supply, Pennsylvania is lagging behind other states as far as solar energy is concerned. That said, it’s not far behind and is rapidly catching up to its peers.
Today, Pennsylvania offers multiple solar incentives to both homeowners and small businesses to increase renewable energy’s contribution to its energy makeup.
So, if you are planning to get a home solar solution, then you must know the following solar incentives available to you:
Investment Tax Credit (ITC)
The federal government offers a flat 26% credit on your income tax when purchasing a home solar solution. Since this is a tax credit and not an upfront discount, your income should be sizeable enough to take full advantage of the rebate.
Also, bear in mind that the 26% tax credit is applicable only for customers who buy solar by the end of 2022. In 2023, the tax credit rate is scheduled to be decreased to 22%.
Solar Renewable Energy Certificates (SRECs)
Renewable energy certificates offer an outstanding rewards program to residential solar customers. This performance-based incentive rewards them based on the amount of solar energy generated by their system, irrespective of whether they use it or divert it to the grid.
You earn an SREC for every 1,000 kWh of solar energy your system generates. And these SRECs are tradeable in the open market and are purchased by utility companies with renewable energy targets. In early 2022, the Pennsylvania SRECs are trading at an average price of $37 apiece.
A 5kW solar installation can generate enough power to earn about 6 SRECs, bringing you an additional $1,850 each year.
Pennsylvania net metering program allows you to sell excess solar power generated by your system to your utility company at the same price at which you buy it. This way, you can send excess solar power generated during the day to the grid, and use the power from the grid during the night when there’s no solar power.
The net metering program is an independent incentive that brings you savings above and beyond what you earn from earning and selling SRECs.