Pennsylvania’s Solar Landscape in 2023: Incentives, Rebates, and Tax Credits Explained
The Keystone State is embracing solar energy, with local incentives playing a significant role in reducing the conversion costs for homeowners. While the typical cost of installing a photovoltaic (PV) system in Pennsylvania stands at around $21,675, several factors make this state more appealing for solar energy investment.
Cost Factors: Equipment and System Size
- Average Cost Per Watt: The average cost per watt for solar equipment in Pennsylvania is $2.55, falling below the national average. This favorable pricing comes from a combination of state-specific policies, market competition, and the availability of local manufacturers.
- Typical System Size: The average homeowner in Pennsylvania will require a system of approximately 8.5 kilowatts (kW), again below the U.S. average. The reduced system size is partly attributable to the region’s energy consumption patterns and the local climate, which may impact solar energy needs.
These factors together mean that the overall price to go solar in Pennsylvania is about $3,000 less than the national average. However, the idea of spending over $20,000 on PV panels is still a hefty sum for most homeowners, and this is where incentives come into play.
Incentives and Affordability: Making Solar Accessible
Though Pennsylvania lacks a current Renewable Portfolio Standard (RPS) goal – a target for the share of electricity generated from renewable sources – the state compensates with a variety of other incentives.
- State Incentives: Pennsylvania offers several state-level incentives, including rebates, grants, and loans, to reduce the upfront costs of solar installation. These incentives are available to homeowners, businesses, and even municipalities, encouraging a broader adoption of solar energy.
- Local Perks: In addition to state incentives, local governments, and utility providers may offer additional perks and discounts. These can include property tax exemptions, net metering programs, or custom rebate programs tailored to the community’s unique needs.
- Federal Tax Credits: On top of state and local incentives, homeowners can also take advantage of the federal solar investment tax credit, which can save thousands of dollars on the system.
A Brighter Future for Solar in Pennsylvania
Pennsylvania is striving to make solar energy an affordable and realistic option for homeowners. With below-average costs for both equipment and system size, along with a combination of state, local, and federal incentives, the transition to solar energy is becoming more attainable for the average homeowner.
The combined effect of these incentives and perks puts Pennsylvania ahead of many other states in offering savings on solar systems. As technology continues to advance and more incentive programs emerge, homeowners in the Keystone State can look forward to even more accessible and cost-effective solar energy solutions. The future looks bright for solar energy in Pennsylvania, reflecting a state committed to sustainable and renewable energy choices.