If you call Pennsylvania home, you might have noticed that your annual electric bill seems a bit steep—about 10% higher than the national average, to be precise. It's a tough pill to swallow, especially when those monthly bills start to add up.
But there's a bright side: more and more Pennsylvanians are discovering the perks of switching to solar energy to save on their electricity bills.
The average cost of solar panels in Pennsylvania hovers around $3.02 per watt. For a typical 5kW setup, you're looking at an investment of approximately $15,100. That might seem like a hefty sum, but before you get discouraged, there's plenty of good news to share.
Numerous programs and financial incentives can help you significantly reduce this upfront cost, making solar energy not just a feasible option but an attractive one.
Key Takeaways
Installing solar panels in Pennsylvania costs about $3.02 per watt, equating to $18,120 for a 6 kW system before incentives.
The 30% ITC reduces this cost to $12,684, making solar more affordable.
There are flexible financing options like solar loans, home equity loans, leases, and PACE financing.
There's significant electricity bill reductions and increased property value over time.
What is the Solar Panel Cost in Pennsylvania 2024?
The cost of installing solar panels in Pennsylvania can vary, but as of 2024, the average cost per watt is around $3.02. This means that for a typical 6-kilowatt (kW) system, the total cost before incentives is approximately $18,120.
However, after applying the federal Investment Tax Credit (ITC), which covers 30% of the cost, the price drops significantly to about $12,684. Over the past decade, the price of solar panels in Pennsylvania has decreased dramatically, dropping by 43%.
This reduction makes now an excellent time for Pennsylvanians to invest in solar energy.
Here's a breakdown of average cost by system size in Pennsylvania:
System Size | Average Cost | Average Cost (after federal ITC) |
3kW | $9,060 | $6,342 |
5kW | $15,100 | $10,570 |
7kW | $21,140 | $14,798 |
9kW | $27,180 | $19,026 |
11kW | $33,220 | $23,254 |
What Factors Affect Solar Panel Cost in Pennsylvania?
Several factors can influence the overall cost of solar panel installation:
System Size: Larger systems that produce more electricity will cost more upfront. However, they can offer greater long-term savings by offsetting a larger portion of your electric bill.
Panel Type and Quality: Higher-quality panels, such as those from premium manufacturers, tend to be more expensive but can offer better efficiency and longer warranties. Different brands also come at different price points, with some offering better durability and performance which can justify the higher cost.
Installation Complexity: The complexity of your roof (such as its pitch and the presence of obstacles like chimneys) can impact installation costs. A more complex installation requires more labor and possibly additional equipment.
Geographical Location: Costs can also vary based on your location within Pennsylvania. Factors such as local labor costs, the availability of installers, and specific local incentives can influence the final price. Rural areas might have slightly higher costs due to fewer available installers, while urban areas might benefit from competitive pricing.
Seasonal Variations: The time of year can affect the price of solar panels. During peak seasons, demand increases, which can drive up prices. Conversely, off-peak seasons might offer discounts as installers seek to maintain steady business.
What are the Available Financial Incentives and Savings Opportunities in Pennsylvania?
Switching to solar power is an excellent investment, but the initial cost can feel daunting. Thankfully, Pennsylvania offers several financing options to make this transition more affordable and hassle-free.
Federal and State Incentives
One of the most impactful incentives available to homeowners nationwide is the Federal Investment Tax Credit (ITC). For 2024, the ITC offers a 30% tax credit on the cost of installing solar panels. This means if your solar system costs $24,160, you can reduce your federal tax bill by $7,248.
This incentive significantly lowers the initial financial barrier to going solar, making it an attractive option for many homeowners.
In addition to the federal ITC, Pennsylvania offers several state-specific incentives:
Solar Renewable Energy Certificates (SRECs): These certificates allow you to earn credits for the electricity your solar panels generate. Utilities purchase these credits to meet renewable energy requirements. This can provide a valuable income stream, as each megawatt-hour of electricity produced by your solar system generates one SREC, which you can sell.
Local Rebates and Grants: Various municipalities and local organizations offer additional incentives. For instance, Philadelphia has offered specific grants for solar installations in the past. Check with local authorities to see if there are current programs available in your area.
Utility Company Programs
Many utility companies in Pennsylvania offer programs to further reduce the cost of solar installation.
Net Metering: This is a vital program that allows you to send excess electricity generated by your solar panels back to the grid. Your utility company will then credit you for this excess power, reducing your overall electricity bill. In Pennsylvania, net metering is mandated by law for investor-owned utilities, which means you receive a credit at the retail rate for each kilowatt-hour your system sends to the grid.
Time-of-Use Rates: Some utilities offer time-of-use rates, where the cost of electricity varies based on demand. By installing a solar battery, you can store energy generated during low-cost periods and use it during peak times, maximizing your savings.
Long-Term Savings
The financial benefits of solar panels extend well beyond the initial incentives. Here’s how:
Energy Bill Reductions: Solar panels can significantly cut your electricity bills. On average, Pennsylvania homeowners can save about $48,000 over 20 years with a 5 kW system. This estimate considers the cost of the system, federal tax credits, and inflation rates of electricity prices.
Return on Investment (ROI): Typically, the payback period for solar panels in Pennsylvania is around 8-10 years, which is relatively quick compared to other home investments. After this period, the savings on your energy bills are pure profit. A good ROI is further enhanced by rising electricity rates, making your initial investment even more valuable over time.
Increased Property Value: Homes with solar energy systems often see an increase in property value. Potential buyers recognize the long-term savings associated with solar energy, making your home more attractive on the market.
What Solar Financing Options Are Available in Pennsylvania?
Switching to solar power is a fantastic investment, but the initial cost can be a hurdle. Fortunately, there are several financing options available in Pennsylvania that can make the transition to solar energy more manageable. Let’s explore these options to help you find the best fit for your financial situation.
Solar Loans
One of the most popular financing options is a solar loan. Much like a home improvement loan, a solar loan allows you to borrow money to cover the upfront cost of your solar installation. You then repay the loan over time with interest.
Many solar loans offer attractive terms, such as low interest rates and flexible repayment periods, which can help make monthly payments affordable. Some companies even offer $0 down loans, meaning you can start saving on your electricity bills right away without an initial outlay of cash.
Solar loans can be obtained from banks, credit unions, and specialized solar financing companies.
Home Equity Loans and Lines of Credit
If you have substantial equity in your home, a home equity loan (HEL) or a home equity line of credit (HELOC) might be a viable option. These loans use your home as collateral, often resulting in lower interest rates compared to other types of loans.
A HEL provides a lump sum of money that you repay over a set period, while a HELOC works more like a credit card, allowing you to draw money as needed up to a certain limit. Both options can be advantageous because the interest payments are typically tax-deductible, adding to your overall savings.
Solar Leases and Power Purchase Agreements (PPAs)
Another route to consider is a solar lease or a Power Purchase Agreement (PPA). With a solar lease, a third-party company owns the solar system installed on your property, and you pay a fixed monthly lease payment to use the power generated.
In a PPA, you agree to purchase the electricity generated by the system at a set rate, usually lower than your utility's current rate. Both options require little to no upfront cost, making them accessible for many homeowners.
However, since you don’t own the system, you won’t benefit from incentives like the federal tax credit or increased property value.
PACE Financing
Pennsylvania also offers Property Assessed Clean Energy (PACE) financing, a unique option that ties the loan to your property rather than to you as an individual. With PACE, you repay the cost of the solar installation through an assessment on your property tax bill.
This financing method can be beneficial as it often comes with long repayment terms and competitive interest rates. Moreover, if you sell your home, the PACE assessment can transfer to the new owner, making it an attractive option for those planning to move in the future.
Are Solar Panels Worth it in Pennsylvania?
Despite having an average cost per watt that aligns with the national average, Pennsylvania remains a fantastic place for solar investments due to its state incentives and policies. Installing solar panels in Pennsylvania is a smart move that pays off significantly over time.
At first, a 6 kW solar panel system might seem costly, priced around $18,120 before incentives. However, after the 30% federal tax credit, the cost drops to about $12,684. This upfront expense is quickly offset by long-term savings on your electricity bills, with a typical payback period of 8 to 10 years.
After this period, you'll save thousands of dollars over the lifespan of the panels, especially as electricity prices continue to rise. Solar energy also helps you reduce your carbon footprint by cutting down on greenhouse gas emissions from fossil fuels. Each kilowatt-hour of solar power you generate contributes to a cleaner, more sustainable future.
Also, homes with solar installations tend to increase in property value, making them more attractive to potential buyers. With the combination of financial savings, positive environmental impact, and increased property value, solar panels in Pennsylvania are a compelling choice if you are looking to invest in a greener, more cost-effective future.
Switching to solar power in Pennsylvania not only offers significant savings but also contributes to a sustainable future. If you’re ready to start saving, now is the perfect time to explore solar energy options. Get a free solar quote today and see how much you can save. Our experts are here to guide you through every step, ensuring a smooth and beneficial transition to solar power.
FAQs
What is the average cost for solar panels in Pennsylvania?
The average cost for solar panels in Pennsylvania is about $3.02 per watt. For a typical 6-kilowatt (kW) system, this equates to approximately $18,120 before incentives. After applying the 30% federal tax credit, the cost drops to around $12,684. Costs can vary based on system size, panel type, and installation complexity.
What are the solar incentives available in Pennsylvania?
What are the available solar financing options?
In Pennsylvania, you have several financing options for solar installations. Solar loans allow you to finance the upfront cost and repay over time. Home equity loans or lines of credit offer low interest rates by using your home as collateral. Solar leases and Power Purchase Agreements (PPAs) provide low or no upfront costs, but you won't own the system. Property Assessed Clean Energy (PACE) financing ties the loan to your property tax bill, which can transfer to new owners if you sell your home.
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