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What solar incentives are available in Pennsylvania?
As a homeowner in Pennsylvania, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools
How to apply : NOTE: Program is closed as of August 2024 In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for wind and geothermal energy technologies. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). The most recent program guidelines were issued in January 2018, available here. Incentives are available to businesses (including non-profits), economic development organizations, political subdivisions (e.g., local governments, schools, etc.), and individuals. The program will offer support for wind and geothermal technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). The definition of geothermal includes, but is not limited to, closed-loop geothermal heat pump systems that use the ground, groundwater, or an underground mine as an energy source. Eligible wind energy-related applications include energy production facilities and manufacturing facilities for wind turbines and other system components. Funds may be used for the following project costs: Acquisition of land and buildings, rights-of-way, and easements necessary for project construction Clearing and preparation of land to build an eligible project Construction or renovation of a building to manufacture wind or geothermal components and systems Equipment purchases for the manufacture of wind or geothermal systems Purchase, installation, and construction of facilities to produce and distribute geothermal or wind energy Project planning and feasibility studies Permit fees Administrative costs associated with an eligible project, not to exceed 2% of funding The individual support mechanisms are described in more detail below. For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. Loans Loans are generally available at a fixed interest rate for terms of up to 10 years (equipment) or 15 years (real estate). Interest rates are set at 250 basis points above the 10 year Treasury bond (5% as of November 2014). Loans for manufacturing facilities are limited to $40,000 per job created within three years of loan approval. Loans for geothermal systems may not exceed $3 per square foot of space to be served by the system, up to $5 million. Loans for wind energy generation or distribution projects are limited to $5 million. Grants Grants for renewable energy manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for wind energy production or distribution facilities are limited to $1 million. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. Grants are not available for the installation of geothermal energy systems. Loan Guarantees Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years. Visit the program web site and review the funding guidelines for additional program details and application procedures.
Who’s eligible : Commercial, Industrial, Agricultural
How to apply : PPL Electric Utilities offers incentives on a variety of energy efficiency projects, including solar and CHP. In 2023, the program design changed to offer energy-based incentives of 8 cents per kWh saved, calculated based on annual performance. The savings must be based on production estimates and annual consumption data or estimates and are subject to verification prior to full approval. New construction projects will be vetted based on the PPL Electric service application. Total Resource Cost and incentives will be calculated based on customer's displaced energy. Pre-approval for solar projects is required. To receive pre-approval, you must have a service and interconnection application submitted, as well as a signed IIR document with PPL Electric. For assistance, reach out to [email protected].
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
How to apply : The Pennsylvania Public Utilities Commission was required to adopt interconnection standards and net-metering rules by the Alternative Energy Portfolio Standards Act of 2004. The PUC subsequently adopted interconnection standards for net-metered distributed generation (DG) systems in August 2006. In July 2007, H.B.1203 required the Pennsylvania Public Utilities Commission (PUC) to develop "technical and net-metering interconnection rules for customer-generators... consistent with rules defined in other states within the service region of the regional transmission organization that manages the transmission system in any part of the [state]." In July 2008 the PUC issued a final rulemaking order (effective November 2008) adopting new net metering regulations, but leaving the state's interconnection standards unchanged. Separately, in February 2009 the PUC issued two additional determinations affecting interconnection. One action adopted a "Policy Statement" defining application fees for different levels of interconnection review (52 Pa. Code § 69.2101 et seq.), a subject that had been left unaddressed in the existing rules. The other issued an opinion and order adopting a set of standardized interconnection applications and agreements for use by electric distribution utilities. Pennsylvania's standards include provisions for four levels of interconnection for generators up to five megawatts (MW) in capacity*. Level 1 interconnection applies to certified, inverter-based systems up to 10 kilowatts (kW) in capacity. Application fee of $100. Level 2 interconnection applies to certified, inverter-based systems up to 2 MW in capacity that do not qualify or were not approved for Level 1 interconnection. Application fee of $250 plus $1.00/kilowatt (kW) of nameplate capacity. Level 3 interconnection applies to systems up to 5 MW in capacity that do not qualify or were not approved for Level 1 or Level 2 interconnection. Application fee of $350 plus $2.00/kilowatt (kW) of nameplate capacity. Level 4 interconnection applies to systems that do not qualify or were not approved for Level 1, Level 2 or Level 3 interconnection, and that do not export power to the grid. Application fee of $350 plus $2.00/kilowatt (kW) of nameplate capacity. The IEEE 1547 and UL 1741 technical standards are used in evaluating interconnection requests under all levels of review. There are technical screens and specified time lines for each level of interconnection. The standards allow a single point of interconnection for a location with multiple generators. Limited interconnection to area networks is permitted. The approved application fee schedule also allows utilities to charge the customer for the cost of grid upgrades necessary to accommodate the system and costs of up to $100/hour associated with system impact, feasibility, or facility studies. Utilities are not permitted to deviate from the fee structure described above without an approval that such a deviation is appropriate from the PUC. Customer-generators must provide an accessible external disconnect switch or access to a disconnect switch through a lock-box system. The customer-generator must pay for the disconnect switch. However, customer-generators are not required to carry liability insurance. The program web site contains draft, standardized forms for Level 1 applications and Level 2, 3 and 4 applications. Actual interconnection forms can be found on the applicable utility web site. Utilities must designate a contact person from whom customer-generators may obtain relevant information regarding a project. A list of these contacts is available on PUC web site. Disputes may be resolved through complaint procedures available through the PUC, or through an alternative process approved by the commission. On October 2016, the PUC issued a final rulemaking order amending interconnection regulation to reflect the increase in limits on customer generation capacity, clarifying the definition of system size limit, and other minor amendments. The documents associated with the case can be accessed at Docket L-2014-2404361. * Electric nameplate capacity is defined as the net maximum or net instantaneous peak output capacity of the generator or the inverters (i.e. AC capacity for solar PV systems).
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
How to apply : NOTE: This model ordinance was designed to provide guidance to local governments that wish to develop their own siting rules for wind turbines. While it was developed as part of a cooperative effort involving several state agencies, the model itself has no legal or regulatory authority. In 2006, Pennsylvania developed a model local ordinance for wind energy facilities through a collaborative effort involving several state departments and stakeholder groups. The purpose of the model is to provide local governments with a general template for permitting wind energy facilities that they may change and adapt to fit their own needs. The initial model ordinance was completed in the spring of 2006 and updated later the same year. The document covers the three ways in which local governments may regulate land use within their borders: zoning ordinances; subdivision and land development ordinances (SLDO); and inherent municipal "police" powers for protecting public welfare. The model zoning ordinance simply defines what constitutes a wind energy facility, then proceeds with example language defining appropriate zones for wind energy as a permitted or conditional use. The SLDO portion of the model ordinance provides a comprehensive set of standards for the construction, operation, and decommissioning of a wind energy facility. The model language is directed at commercial wind energy facilities as opposed to stand-alone systems constructed primarily for residential or farm use. It includes provisions for several wind facility characteristics, including: Design and Installation: This category of standards includes general criteria related to safety and construction codes as well as visual appearance (i.e., color, lighting advertising) of the facility and associated support infrastructure (e.g., power lines). Setbacks: This section defines the minimum required distance between wind turbines and other structures. The model language includes setbacks of 1.1 times the total height (base to tip of blade) from the nearest occupied building, 5 times the hub height to the nearest occupied building of a non-participating landowner, 1.1 times the total height to the nearest property line, and 1.1 times the total height from the nearest public road. A separate section addresses waivers to setbacks. Public Disturbances: This broad term includes several sections relating to possible adverse effects of wind farm operation. Among the possibilities addressed in the ordinance are road damages and repair liability; interference with television, radio, telephone and similar signals; shadow flicker; and noise. The section on noise suggests 55 decibels (dBa) as the upper limit and describes appropriate measurement methods. Additional sections of the model ordinance address local emergency services, insurance requirements, facility decommissioning, site restoration, abandonment, and dispute resolution. The "police" power model covers the same topics as the model SLDO in a slightly different format.
Who’s eligible : State Government
How to apply : On September 21, 2021, the Governor's Office issued Management Directive 720,05 Amended, Energy Management and Conservation in Commonwealth-Owned and Leased Facilities. This Directive supersedes and replaces Management Directive 720.05 dated July 25, 2008. The Directive establishes policy and responsibilities for the management of facilities owned or leased by the Commonwealth of Pennsylvania. It applies to all departments, offices, commissions, and other agencies under the Governor's jurisdiction that occupy space controlled by the Department of General Services in facilities in the Commonwealth. The Objectives of the Directive are compliance with the stipulations of Executive Order 2019-01, which established a 3% annual reduction in energy consumption. It directs agencies to: Utilize program and portfolio management tools including Commonwealth Utility Benchmarking Initiative, GreenGov Program, Real Estate Portfolio Management Tool, and Other tools that may support the objectives of this directive. Identify and procure energy-saving and efficiency projects utilizing project delivery mechanisms such as: Guaranteed Energy Savings Act, Capital projects, Job Order Contracting, Leasehold Improvement, and Other methods to reduce energy consumption and greenhouse gas emissions. The Directive instructs agencies to establish "Agency Sustainability Teams" consisting of internal staff in multiple disciplines. Agency Sustainability Teams must participate in: Commonwealth Utility Benchmarking Initiative by assigning and training agency staff in key roles and providing continued program support for the management, tracking, and assessment of utility data for the achievement of utility efficiency goals and identification of energy-saving projects. GreenGov Program by using the GreenGov Agency Certification Checklist, supporting an Agency Sustainability Team, and collaborating with other agencies through the sharing of energy-saving program information and participation in joint initiatives. Efficient use of space and streamlining of the Commonwealth-leased portfolio by utilizing the Real Estate Portfolio Management Tool, assigning and training agency staff for the management of facilities, and maintaining and storing core facility data including locations, specifications (square footage), technical drawings, occupant use and locations, and other building-specific data. Delivery of energy savings projects through procurement methods including, but not limited to, GESA, JOC, Leasehold Improvements, capital projects, or other tools that may support this directive’s objectives. The Directive requires agencies to implement specific building-specific conservation measures for appliances, interior environmental controls, lighting, and office equipment standards and practices. Responsibilities established by the Directive include Technical assistance for Sustainability Teams by the Department of General Services, Agency Heads ensure employees receive training and support in energy conservation, Managers must support programs and assign, train, and support staff in program roles, Employees must comply with all requirements of the Directive -- In December 2004, the Governor signed Executive Order 2004-12, which made a number of energy efficiency related requirements for state facilities. The Pennsylvania Department of General Services (DGS) is generally responsible for administering the state's energy management and conservation policies as a centralized coordinator. Consistent with this role, the DGS has responsibilities including, but not limited to, the following: Work with state agencies to develop energy conservation methods for new construction and building renovations, including green building practices Implement programs to train personnel in life-cycle cost analysis and apply it to state projects Develop and implement standard procedures for state Energy Service Company (ESCO) projects Develop procedures for energy use reduction in state-leased facilities Procure Energy Star or other energy efficiency products when it is economical and consistent with life-cycle cost analysis. The order also contains an extensive list of behavioral and equipment improvements that should be implemented by all state executive agencies. The Pennsylvania Department of Environment Protection (DEP) is directed to provide assistance and advice to the DGS and other executive agencies in implementing the energy conservation requirements of the order. The 2004 initiative reportedly reduced energy consumption in state buildings by 10% annually during 2006. In June 2008 Governor Rendell directed the DGS to implement further energy efficiency measures with a goal of achieving an additional 10% reduction in energy use in state buildings by 2010. The new directive called for compact fluorescent lighting to replace all incandescent lighting; lighting in the Capitol Complex to incorporate occupancy sensors; peak shedding and smart metering strategies to be deployed in state-owned buildings; and office thermostat settings to be increased from 74 degrees to 75 degrees in state buildings during the summer. Revised Management Directive No. 720.5 issued in July 2008 provides further details on the state's energy efficiency policy for state buildings. Although it appears that a renewed energy conservation target for state buildings has not been set, the 2004 Executive Order and 2008 Management Directive remain in effect.
Can you claim multiple tax incentives in Pennsylvania?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does Pennsylvania offer tax exemptions?
Loan Program
Category : Financial Incentive
Website : https://dced.pa.gov/programs/renewable-energy-program-rep-geothermal-wind-projects/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://dced.pa.gov/programs/solar-energy-program-sep/#.WDSKnLIrJhE
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, Agricultural
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://www.wppsef.org/need-financing.php
Applicable Sectors : Commercial, Industrial
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.metedpenelecsef.org/index.php?option=com_content&view=article&id=86
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Institutional
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.TheSEF.org
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Agricultural
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.dep.pa.gov/Citizens/GrantsLoansRebates/SmallBusinessOmbudsmanOffice/Pages/PPAA%20Loan.aspx#:~:text=The%20Small%20Business%20Pollution%20Prevention,waste%2C%20pollution%20or%20energy%20use.&text=Reduce%20the%20production%20of%20waste%20at%20the
Applicable Sectors : Commercial, Industrial
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/high-performance-building-program-hpb
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://www.reinvestment.com/initiatives/clean_energy/sdf/
Applicable Sectors : Commercial, Industrial, Nonprofit, Schools
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://www.metedpenelecsef.org/index.php
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Institutional
Incentive Amount :
Implementing Sector : Local
Rebate Program
Category : Financial Incentive
Website : https://www.pplelectricbusinesssavings.com/ppl-business/incentives/overview/
Applicable Sectors : Commercial, Industrial, Agricultural
Incentive Amount : $0.08/kWh of energy reduction
Implementing Sector : State
Category : Financial Incentive
Website : https://www.peco.com/SmartEnergy/InnovationTechnology/Pages/ElectricVehiclesL3.aspx
Applicable Sectors : Commercial
Incentive Amount : 50% of make-ready costs, 75% of make ready costs in Environmental Justice Areas
Implementing Sector : Utility
Category : Financial Incentive
Website : http://www.peco.com/WaystoSave/ForYourBusiness/Pages/GasEUOverview.aspx
Applicable Sectors : Commercial, Industrial, Nonprofit, Federal Government, Institutional
Incentive Amount : Natural Gas Boiler: $300 per unit Natural Gas Furnace: $300 per unit
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.firstenergycorp.com/save_energy/save_energy_pennsylvania/for_your_home_pa.html
Applicable Sectors : Construction, Residential, Installers/Contractors, Low Income Residential
Incentive Amount : Appliances Air Purifier: $15 Clothes Dryer: Up to $50 Clothes Washer: $25 Dehumidifier: $15 Dishwasher: $25 Freezer: $25 Refrigerator: Up to $50 Ventilation Bath Fan: $10 Heating and Cooling Smart Thermostat: $50 Air Source Heat Pump: up to $500 Central Air Conditioner: $250 Ductless Mini-Split AC: $200 Ductless Mini-Split HP: $200 Geothermal Heat Pump: $650 Heat Pump Air to Water with Domestic Hot Water: $400 HVAC Tune-Up: $50 Packaged Terminal Air Conditioner: $75 Packaged Terminal Heat Pump: $150 Room Air Conditioner: Up to $30 Water Heating Heat Pump Water Heater: $500 Solar Water Heater: $500 Appliance Recycling Program Refrigerator: $50 Room Air Conditioner: $50 Freezer: $25 Dehumidifier: $25 Mini Refrigerator: $25 Check this website for full details on rebates.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.duqenergyefficiency.com/business-solutions?hsCtaTracking=c4804d28-e40a-4d93-ba28-a722391fbbc3%7Cdb4edea8-f2cd-4d44-8711-d175e436bbe5
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Schools, State Government, Federal Government, Institutional
Incentive Amount : Lighting: Varies by type Controls and Sensors: $15-$20 Variable Frequency Drives: $75/hp Packaged Terminal AC: $60-$70/ton Refrigeration Equipment: Varies Custom projects: 0.08/kWh
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.dep.pa.gov/Business/Energy/OfficeofPollutionPrevention/Energy_Efficiency_and_Conservation/CommercialBuildings/Pages/default.aspx
Applicable Sectors : Commercial, Nonprofit, Schools, Institutional
Incentive Amount : 50% of cost
Implementing Sector : State
Category : Financial Incentive
Website : https://www.phila.gov/programs/solar-rebate-program/
Applicable Sectors : Commercial, Residential, Multifamily Residential, Low Income Residential
Incentive Amount : Residential: $0.20 per watt of solar installed Commercial: $0.10 per watt of solar installed
Implementing Sector : Local
Category : Financial Incentive
Website : https://duquesne.clearesult.com/
Applicable Sectors : Residential, Multifamily Residential, Low Income Residential
Incentive Amount : Programmable Thermostats: $25-$185 Central A/C / Heat Pumps: $100/ton ENERGY STAR Certified Heat Pump Water Heater: $300 Solar Water Heater: $300 Ceiling/Floor/Wall Insulation: $0.23/square foot ENERGY STAR Certified Dehumidifier: $20 ENERGY STAR Certified Refrigerator: $35 ENERGY STAR Certified Freezer: $10 ENERGY STAR Certified Room Air Conditioner: $150 ENERGY STAR Variable Speed Pool Pump: $200 Occupancy Sensor Based Control: $10 Smart Strip Surge Protector: $5 Furnace with High Efficiency Fan Motor: $100 Ductless Mini-Split Heat Pump: $100 Refrigerator/Freezer Recycling: $35
Implementing Sector : Utility
Category : Financial Incentive
Website : https://pgwenergysense.com/residential-rebates/
Applicable Sectors : Commercial, Industrial, Residential, Federal Government, Multifamily Residential, Low Income Residential
Incentive Amount : Standard Residential Rebates Furnace: $400/first unit, $250/additional units Boiler: $1,000/first unit, $700/additional units Combi Boiler: $1,400/first unit, $1,000/additional units Tankless Water Heater: $400/first unit, $350/additional units Affordable EnergySense Incentive* Furnace: $800/first unit, $250/additional units Boiler: $1,400/first unit, $700/additional units Combi Boiler: $2,000/first unit, $1,000/additional units Tankless Water Heater: $700/first unit, $350/additional units *To qualify for Affordable EnergySense incentives, within the last year customers must have enrolled in PGW’s CRP program, received a UESF grant, or received a LIHEAP grant and assigned it to PGW. Affordable EnergySense incentives are available for eligible equipment installed on or after 09/1/2021.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial, Local Government, Schools
Incentive Amount : Vehicle Electric Repower or Replacement Class 4-5 Trucks: up to 60% of cost (100% in priority areas), up to $108,000 ($180,000 in priority areas) Class 6-7 Trucks: up to 60% of cost (100% in priority areas), up to $126,000 ($210,000 in priority areas) Class 8 Trucks: up to 60% of cost (100% in priority areas), up to $180,000 ($300,000 in priority areas) Drayage Truck: up to 60% of cost (100% in priority areas), up to $180,000 ($300,000 in priority areas) School Bus: up to 60% of cost (100% in priority areas), up to $150,000 ($250,000 in priority areas) Shuttle Bus: up to 60% of cost (100% in priort areas), up to $121,000 ($200,000 in priority areas) Short Range Transit Bus: 100% of cost, up to $100,000 Long Range Transit Bus: 50% of cost, up to $250,000 ($500,000 in priority areas) Vehicle and Infrastructure Electric Repower or Replacement Class 4-5 Trucks: up to 60% of cost (100% in priority areas), up to $114,000 ($190,000 in priority areas) Class 6-7 Trucks: up to 60% of cost (100% in priority areas), up to $132,000 ($220,000 in priority areas) Class 8 Trucks: up to 60% of cost (100% in priority areas), up to $186,000 ($310,000 in priority areas) Drayage Truck: up to 60% of cost (100% in priority areas), up to $186,000 ($310,000 in priority areas) School Bus: up to 60% of cost (100% in priority areas), up to $156,000 ($260,000 in priority areas) Shuttle Bus: up to 60% of cost (100% in priort areas), up to $127,200 ($212,000 in priority areas) Short Range Transit Bus: 100% of cost, up to $150,000 Long Range Transit Bus: 50% of cost, up to $250,000 ($500,000 in priority areas)
Implementing Sector : State
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial, Local Government
Incentive Amount : All Projects: Public, Networked Level 2 EVSE in priority counties: 70% of cost, up to $4,000 Public, Networked Level 2 EVSE in other counties: 60% of cost, up to $3,500 Multi-Unit Dwelling Level 2 EVSE: 50% of cost, up to $3,000 All Other Eligible Projects: 40% of cost, up to $2,500.
Implementing Sector : State
Category : Financial Incentive
Website : https://solutions.peco-energy.com/equipment-incentives
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Multifamily Residential, Institutional
Incentive Amount : Lighting Varies widely by equipment type, see program website. HVAC Air Cooled Air Conditioner <5.4 tons: $40/Ton Air Cooled Air Conditioner ≥5.4 and <11.25 tons: $50/Ton Air Cooled Air Conditioner ≥11.25 and <20 tons: $60/Ton Air Cooled Air Conditioner ≥20 and <63.33 tons: $1,400/Unit Air Cooled Air Conditioner ≥63.33 tons: $1,600/Unit Air Cooled Heat Pumps <5.4 tons: $75/Ton Air Cooled Heat Pumps ≥5.4 and <11.25 tons: $85/Ton Air Cooled Heat Pumps ≥11.25 and <20 tons: $85/Ton Air Cooled Heat Pumps ≥20 tons: $1,800/Unit Ductless Mini-Split Heat Pump: $50/Ton Packaged Terminal Systems <0.66 tons: $45/Ton Packaged Terminal Systems ≥0.66 and <0.875 tons: $48/Ton Packaged Terminal Systems ≥0.875 tons: $50/Ton Water Cooled Heat Pump <1.4 tons: $150/Pump Water Cooled Heat Pump 1.4–5.4 tons: $250/Pump ECM Circulation Fan: $30/Fan Economizer Controls <5.4 Tons: $100/Unit Economizer Controls 5.4–20 Tons: $200/Unit Economizer Controls >20 Tons: $300/Unit Hotel Guest Room Occupancy Sensor: $45/Per Room Air Cooled Chiller <75 Tons, HVAC: $1,550/Unit Air Cooled Chiller 75–150 Tons, HVAC: $3,100/Unit Water Cooled Centrifugal Chiller ≥150 tons and greater: $20/Ton Water Cooled Positive Displacement or Reciprocating Chiller ≥75 tons and greater: $20/Ton Motors and Drives Varies widely by equipment type, see program website. Compressed Air Cycling Refrigerated Thermal Mass Dryer: $20 Compressor No-loss Condensate Drain: $50/Drain Storage Tanks for Load/No Load Screw Compressors <50 HP: $800/Unit Storage Tanks for Load/No Load Screw Compressors 50–150 HP: $1,000/Unit Storage Tanks for Load/No Load Screw Compressors >150 HP: $1,500/Unit Variable Speed Air Compressor: ≤50 HP $2,200/Compressor Variable Speed Air Compressor: 51–100 HP $4,400/Compressor Variable Speed Air Compressor: 101–150 HP $6,200/Compressor New Construction Lighting Power Density: ≥5% better than code: $0.10/kWh Saved Whole Building: >5% to 10% better than code: $0.15/kWh Saved Whole Building: 11–20% better than code: $0.16/kWh Saved Whole Building: 21–30% better than code: $0.17/kWh Saved Whole Building—Design Incentive: Up to $25,000 Application Data Centers Computer Room Air Conditioner <5.4 tons: $350/Per CRAC Computer Room Air Conditioner 5.4–20 tons: $550/Per CRAC Computer Room Air Conditioner >20 tons: $750/Per CRAC Computer Room Air Handler, variable speed: $30/Ton PC Power Management System: $6/Pc Controlled Uninterruptible Power Supply: $1,500/Unit Water Cooled Centrifugal Chiller: <150 tons $20/Ton Water Cooled Positive Displacement or Reciprocating Chiller <75 tons: $20/Ton Refrigeration & Food Service Add Doors to Open Refrigerated Cases: $45/Door Air Cooled Refrigeration Condenser: $250/Unit Anti-Sweat Heater Controls: $60/Door Automatic Door Closers for Walk-in Coolers: $40/Door Automatic Door Closers for Walk-in Freezers: $60/Door Door Gaskets: $50/Door Evaporative Fan Controls: $30/Controller Evaporator Coil Defrost Control: $104/Controller Evaporator Fan EC Motor for Reach-in Cases: $25/Motor Evaporator Fan EC Motor for Walk-in Cases: $30/Motor Floating-head Pressure Controls: $1,000/Control LED Refrigeration Case Lighting, Open Case, Refrigerator or Freezer: $0.10/kWh Saved LED Refrigeration Case Lighting, Reach-in Case, Refrigerator or Freezer: $30/Door Night Cover for Display Cases: $20/Case Suction Pipe Insulation for Walk-in Coolers: $150/System Suction Pipe Insulation for Walk-in Freezers: $180/System Variable Speed Refrigeration Compressor: $2,000/Compressor Zero Energy Doors: $40/Door Custom $0.10 kWh Saved
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pplelectricsavings.com/HomeEquipment/Products
Applicable Sectors : Residential, Multifamily Residential, Low Income Residential
Incentive Amount : In-Home Audits In-Home Audit for Electric Heating and Central A/C: $350 In-Home Audit for Electric Heating or Central A/C: $200 Virtual Home Energy Assessment: Free Weatherization Upgrades Attic Insulation (electric heated house): $500 Attic Insulation (central A/C, non-electric heat): $200 Basement Wall Insulation (electric heat): $500 Basement Wall Insulation (central A/C, non-electric heat): $200 Air Sealing: $200 Efficient Equipment Upgrades Smart Thermostat (self-install): $50 Smart Thermostat (professional install): $100 Heat Pump Water Heater: $400 Air Source Heat Pump (ASHP): $350 Air Source Heat Pump (ASHP): $450 Ductless Mini-Split Heat Pump: $400 Central Air Conditioner (CAC): $200 Central Air Conditioner (CAC): $300 Variable-Speed Pool Pump (in-ground only) $350 Bonus Rebates for Multiple Upgrades Comprehensive Retrofit Bonus: Tier 1 $250 Comprehensive Retrofit Bonus: Tier 2 Additional $100 Efficient Appliances Refrigerator: $50 Dehumidifier: $25 Appliance Recycling Refrigerator: $50 Freezer: $50 Window A/C: $10 Dehumidifier: $10 Fuel Switch Water Heater: $200 Central Heating: $200
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.dep.pa.gov/Citizens/GrantsLoansRebates/Alternative-Fuels-Incentive-Grant/Pages/Alternative-Fuel-Vehicles.aspx#.Vl9K83arSUk
Applicable Sectors : Residential, Low Income Residential
Incentive Amount : Battery EVs: $2,000 PHEVs: $1,500 Alternative fuel vehicles & electric motorcycles: $500 An additional $1,000 is available to applicants meeting low-income requirements
Implementing Sector : State
Category : Financial Incentive
Website : https://www.peco.com/WaystoSave/ForYourHome/Pages/NaturalGasRebatesCredits.aspx
Applicable Sectors : Residential, Low Income Residential
Incentive Amount : High efficiency boiler: $350 ENERGY STAR High efficiency furnace: $350 - $600 (95 - 97% AFUE) Natural Gas Combi Boiler: $1,000 Natural Gas Boiler: $350 Natural Gas Storage Tank Water Heater: $125 Natural Gas Clothes Dryer: $15 Natural Gas Furnace Fan Motor: $50 Natural Gas Heating Conversion Rebate: $200
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.peco.com/WaysToSave/ForYourHome/Pages/RebatesDiscounts.aspx
Applicable Sectors : Residential
Incentive Amount : Energy Star Appliances Air Purifier: $25 Bathroom Vent Fan: $20 Clothes Washer: $25 Dehumidifier: $50 Electric/Natural Gas Clothes Dryer: $15 Heat Pump Clothes Dryer: $75 Heat Pump Water Heater: $350 Natural Gas Storage Tank Water Heater: $100 - $125 Refrigerator: $20 Room AC: $10 HVAC Central AC System: $150 - $200 Air Source Heat Pump System: $200 - $300 Air Source Heat Pump Maintenance: $25 ECM Fan Motor: $50 Ductless Heat Pump: $150 - $300 Variable Speed Pool Pump: $200 Instant rebates available for LED lighting, see program site for details
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.peco.com/SmartEnergy/InnovationTechnology/Pages/ElectricVehiclesL3.aspx
Applicable Sectors : Commercial, Residential
Incentive Amount : 50
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pplelectricbusinesssavings.com/?utm_source=foryourbusiness&utm_medium=saveenergy&utm_campaign=pplwebsite
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, State Government, Federal Government, Agricultural, Multifamily Residential, Institutional
Incentive Amount : Incentives vary based on equipment type and characteristics. See website for details.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://pgwenergysense.com/commercial-rebates/
Applicable Sectors : Commercial, Construction, Industrial, Federal Government, Multifamily Residential
Incentive Amount : Natural Gas Boiler: $2,700 to $9,000 based on the equipment size. Low-Intensity Infrared Heater: $300/unit Commercial Hot Water Heater (storage or tankless): $4.25/MBH Showerhead Aerator: $18/unit (minimum 10) Faucet Aerator: $5/unit (minimum 10) Boiler Reset Control: $400 Steam Trap Replacements: $50-$150 based on the steam trap type. High Efficiency food service equipment: Varies, see website for details Building Roof Insulation: $0.60/sf
Implementing Sector : Utility
Category : Financial Incentive
Website : https://pgwenergysense.com/residential-rebates/
Applicable Sectors : Commercial, Residential, Federal Government, Low Income Residential
Incentive Amount : Base Incentive Furnaces: $400 (first unit), $250 (additional units) Boilers: $1,000 (first unit), $700 (additional units) Combi Boiler: $1,400 (first unit), $1,000 (additional units) Tankless Water Heater: $400 (first unit), $350 (additional units) Affordable EnergerSense Incentive* Furnaces: $800 (first unit), $250 (additional units) Boilers: $1,400 (first unit), $700 (additional units) Combi Boiler: $2,000 (first unit), $1,000 (additional units) Tankless Water Heater: $700 (first unit), $350 (additional units) *To qualify for Affordable EnergySense incentives, within the last year customers must have enrolled in PGW’s CRP program, received a UESF grant, or received a LIHEAP grant and assigned it to PGW. Affordable EnergySense incentives are available for eligible equipment installed on or after 09/1/2021.
Implementing Sector : Utility
Category : Financial Incentive
Website : http://www.energysavepa-business.com/
Applicable Sectors : Commercial, Industrial, Local Government, Schools, State Government, Federal Government, Institutional
Incentive Amount : Available Segments: Agriculture Appliances and Electronics Combined Heat and Power Commercial Lighting Custom Equipment HVAC Instant Discounts Solar Food Service Facility Audit Incentives
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.duquesnelight.com/energy-money-savings/electric-vehicles
Applicable Sectors : Commercial, Residential
Incentive Amount : 50
Implementing Sector : Utility
Energy Standards for Public Buildings
Category : Regulatory Policy
Website : https://www.phila.gov/programs/greenworks/
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Category : Regulatory Policy
Website : https://www.oa.pa.gov/Policies/md/Documents/720_5.pdf
Applicable Sectors : State Government
Incentive Amount :
Implementing Sector : State
Interconnection
Category : Regulatory Policy
Website : http://www.puc.pa.gov/consumer_info/electricity/alternative_energy.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Green Building Incentive
Category : Financial Incentive
Website : https://www.phila.gov/documents/ez-permit-applications-permits-without-plans/#ez-permit-standard-solar-photovoltaic-pv-system
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount :
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.phila.gov/green/solarGuidebook.html
Applicable Sectors : Commercial, Residential, Multifamily Residential
Incentive Amount :
Implementing Sector : Local
Solar/Wind Permitting Standards
Category : Regulatory Policy
Website : https://www.dep.pa.gov/Business/Energy/Wind/Pages/default.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Renewables Portfolio Standard
Category : Regulatory Policy
Website : http://www.pennaeps.com/
Applicable Sectors : Investor-Owned Utility, Retail Supplier
Incentive Amount :
Implementing Sector : State
Generation Disclosure
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Building Energy Code
Category : Regulatory Policy
Website : https://www.energycodes.gov/status/states/pennsylvania
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Grant Program
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial
Incentive Amount : Up to 70% reimbursement or $250,000
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/renewable-energy-program-rep-geothermal-wind-projects/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount : There is a matching investment requirement of at least $1 for every $1 of program funds awarded. There is a $100 non-refundable application fee due at the time of submission made payable to the CFA. There is a 1% commitment fee on all approved loans.
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/high-performance-building-program-hpb/
Applicable Sectors : Commercial, Residential
Incentive Amount : Vary by project, but program generally requires matching funds at least equivalent to DCED funding
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial, Schools
Incentive Amount : Class 4-5 Electric Trucks: 60% up to $108,000 Class 6-7 Electric Trucks: 60% up to $126,000 Class 8 Electric Trucks: 60% up to $180,000 Drayage Electric Trucks: 60% up to $180,000 Electric School Buses: 60% up to $150,000 Electric Shuttle Buses: 60% up to $121,200 Electric Short Range Transit Buses: 100% up to $100,000 Electric Long Range Transit Buses: 50% up to $250,000
Implementing Sector : State
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial, Local Government
Incentive Amount : All-Electric Forklift Repower or Replacement: Up to 60% reimbursement (government), up to 40% reimbursement (non-government) All-Electric Airport GSE Repower or Replacement: Up to 60% reimbursement (government), up to 40% reimbursement (non-government) All-Electric Port Cargo Handling Equipment Repower or Replacement: Up to 60% reimbursement (government), up to 40% reimbursement (non-government)
Implementing Sector : State
Category : Financial Incentive
Website : https://bccf.org/overview-sustainable-energy-funds/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount : Varies according to project
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.dep.pa.gov/Citizens/GrantsLoansRebates/Alternative-Fuels-Incentive-Grant/Pages/default.aspx#.Vl9OeHarSUk
Applicable Sectors : Commercial
Incentive Amount : Varies
Implementing Sector : State
Category : Financial Incentive
Website : https://gis.dep.pa.gov/DrivingPAForward/
Applicable Sectors : Commercial
Incentive Amount : Electrified Parking Space/Truck Stop Electrification: Up to 30% reimbursement Highway Engine Replacement - Low NOx: Up to 50% reimbursement Highway, Locomotive, Marine, or Nonroad Engine Replacement - Zero Emission: Up to 60% reimbursement Highway Vehicle/Equipment Replacement - Low NOx: Up to 35% reimbursement Highway, Locomotive, Marine, or Nonroad Vehicle/Equipment Replacement - Zero Emission: Up to 45% reimbursement
Implementing Sector : State
Category : Financial Incentive
Website : https://bccf.org/sustainable-energy-fund/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount : Varies according to project
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.dep.pa.gov/Citizens/GrantsLoansRebates/SmallBusinessOmbudsmanOffice/Pages/Small%20Business%20Advantage%20Grant.aspx
Applicable Sectors : Commercial
Incentive Amount : Up to 50% of equipment costs
Implementing Sector : State
Solar Renewable Energy Credit Program
Category : Financial Incentive
Website : https://pennaeps.com/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Installers/Contractors, Agricultural, Multifamily Residential, Low Income Residential
Incentive Amount : Varies based on market conditions; during 2022 the market price for PA-sourced SRECs ranged between $30 - $47/MWh
Implementing Sector : State
Net Metering
Category : Regulatory Policy
Website : http://www.puc.pa.gov/consumer_info/electricity/alternative_energy.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Industry Recruitment/Support
Category : Financial Incentive
Website : https://dced.pa.gov/programs/renewable-energy-program-rep-geothermal-wind-projects/
Applicable Sectors : Industrial
Incentive Amount : Varies by project, but program generally requires matching funds at least equivalent to DCED funding Manufacturer loans: $40,000 per job created within 3 years Manufacturer grants: $5,000 per job created within 3 years Loans for geothermal systems: $3 per square foot of space served up to $5 million Loans for wind energy production projects: $5 million Grants for wind energy production projects: $1 million Grants for feasibility studies: 50% of cost up to $175,000 Loan guarantee grants: Up to 75% of deficient funds up to $5 million
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools
Incentive Amount : Varies by project, but program generally requires matching funds at least equivalent to DCED funding
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
Applicable Sectors : Commercial, Industrial
Incentive Amount : Varies by project, but program generally requires matching funds at least equivalent to DCED funding
Implementing Sector : State
Category : Financial Incentive
Website : https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
Applicable Sectors : Commercial, Industrial
Incentive Amount : Varies by project, but program generally requires matching funds at least equivalent to DCED funding
Implementing Sector : State
Green Power Purchasing
Category : Regulatory Policy
Website : http://www.phila.gov/green/greenworks/energy_Alternative.html#purchase
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Public Benefits Fund
Category : Regulatory Policy
Website : http://www.puc.pa.gov/utility_industry/electricity/sustainable_energy_fund.aspx
Applicable Sectors : Commercial, Industrial, Investor-Owned Utility, Municipal Utilities, Residential, Cooperative Utilities, Institutional
Incentive Amount :
Implementing Sector : State
Property Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Agricultural
Incentive Amount : 100% of system value exempted, but provides alternative valuation method
Implementing Sector : State
Energy Efficiency Resource Standard
Category : Regulatory Policy
Website : http://www.puc.pa.gov/filing_resources/issues_laws_regulations/act_129_information.aspx
Applicable Sectors : Investor-Owned Utility
Incentive Amount :
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Pennsylvania, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
