Complete Guide to 2022 Pennsylvania Solar Incentives
Solar energy systems can turn sunlight into electrical energy using photovoltaic (PV) panels or mirrors. This power has three possible storage methods: thermally, in batteries, and as electricity. Going solar can be done for a variety of reasons, including financial savings and environmental protection. But this is an expensive investment. Due to the abundance of discounts, grants, and incentives, going solar can be more affordable.
According to Energy Sage, “an average solar installation in Pennsylvania ranges in cost from $12,750.00 to $17,250.00, with the average gross price for solar in Pennsylvania coming in at $15,000.00.” In this article, we’ll review some of the solar rebates and incentives available to Pennsylvania homeowners.
Federal Solar Investment Tax Credit (ITC)
The Federal Tax Solar Investment Tax Credit or ITC is a crucial federal program that can be used to lower solar energy costs. This program provides a 26% tax credit that can be used to reduce tax obligations for solar systems installed on residential and commercial properties. But these numbers change. You are eligible for a tax credit when you purchase solar panels and install them on your roof.
The following is the conceivable earning range:
- 26% for initiatives beginning in 2021 and 2022,
- Projects that start construction in 2023 will get a discount of 22%,
- After 2023, the residential credit will no longer exist, while business credit will still be 10%.
To qualify for this credit, you must meet a variety of requirements, including:
- If the electricity produced is credited against and does not exceed the quantity of electricity used by your home, the solar PV system is installed at your primary or secondary dwelling in the United States, or for an off-site community solar project.
- You are the owner of the solar PV system
- It is a brand-new solar PV system that has never been put to use. Only the “first installation” of solar equipment is eligible for credit.
Solar Renewable Energy Credits (SRECs)
One of the few states with an SREC program is Pennsylvania. For each kilowatt-hour (kWh) of solar energy your system produces, you can receive credits with SRECs, also known as Solar Renewable Energy Certificates. You might generate income each year by reselling your solar credits on the SREC market. You might generate income each year by reselling your solar credits on the SREC market. The current credit values range from $35.00 to $40.00.
Philadelphia Solar Rebate Program
Even though the Philadelphia Solar Rebate Program is currently closed, it’s still worth mentioning. This program offers a one-time incentive after the installation of the solar panels and Permission to Operate from PECO. Solar Rebates are capped at $100,000.00. To be eligible, applicants must have installed solar on the territory of Pennsylvania, have received Permission to Operate from PECO on or after July 1, 2019, and be current on their taxes.
The amount of the rebate is as follows:
- $0.20 per watt for residential projects.
- $0.10 per watt for commercial projects.
Solarize Philly is another program available in Philadelphia. It is administered by the Philadelphia Energy Authority (PEA). Participants in their Solar Savings Grant Program can finance the remaining costs and begin saving from the first year after receiving a grant for a portion of the project’s cost. Your household’s overall income must be at or below 80% of the area median income in order to be eligible for this program. According to their official site, approved installers include Solar States, Superior Solar, Posigen Solar, and EDP Renewables.
Net Metering in Pennsylvania
Another important solar legislation in Pennsylvania is Net Metering, which governs how a home’s solar PV system is connected to the power grid. The utility can buy excess solar electricity from solar house owners at the same price they would pay to buy it on the open market. This allows homeowners to save their solar energy when production is up and use it later.
PA Business Energy Investment Tax Credit
Businesses in Pennsylvania that install solar systems are eligible for a 30% Business Energy Investment Tax Credit. The maximum credit is $200.00 per kWh for microturbines and $1,500.00 every 0.5 kWh for fuel cells.
By taking our suggestions on Pennsylvania Solar Incentives into account, you can get the most out of your solar panels. Do your own research and compare the discounts being offered in your market. Apply as soon as your solar panels are installed. And remember, don’t attempt solar installation on your own! The best method at the moment is to hire a certified professional who has experience installing solar and who employs high-quality solar panels.