Solar resource
Your solar production in Philadelphia
4.65 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Philadelphia, PA. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
PECO (PECO Energy Company) electricity rate
$0.155/kWh residential
- Utility
- PECO (PECO Energy Company)
- Residential rate
- $0.155/kWh (blended)
PECO customers with solar receive net metering credits at the full retail rate under Pennsylvania PUC net metering rules (52 Pa. Code §75). Credits carry forward month-to-month; any unused annual credits are reconciled at the end of the annualized period. Pennsylvania's AEPS (Alternative Energy Portfolio Standard) also supports an SREC market for solar generation — PA SRECs provide additional income, though at lower prices than DC or NJ markets.
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Incentives
Available solar incentives in Philadelphia, PA
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| PA Sunshine Solar Program | Rebate | Up to ~$0.10/watt for residential systems; competitive program — verify current availability | State |
| Pennsylvania AEPS SREC Market | Srec | ~$15–$40 per SREC (1 SREC = 1 MWh generated); ~6.9 SRECs/year for a 6 kW system | State |
| PECO Net Metering | Net Metering | Retail rate credit (~$0.155/kWh) for excess solar exported to the grid | Utility |
| Pennsylvania Property Tax Exemption for Solar | Exemption | Solar system value excluded from property assessment for local real estate taxes | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17400
- Federal ITC (30%)
- −$5820
- Net system cost
- $11,580
- Installed cost per watt
- $2.9/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Mid-Atlantic median installed cost for systems 3–10 kW.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,070
- Simple payback period
- 10.8 years
- 25-year net savings
- $22500
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Philadelphia
- Your panels produce power year-round in Philadelphia Philadelphia averages 4.65 peak sun hours per day — a solid Mid-Atlantic resource. A 6 kW system produces roughly 6,900 kWh/year, peaking May through August and slowing through December–January. Cold, clear winter days in Philadelphia still produce meaningful output — solar panels operate more efficiently at lower temperatures.
- An inverter converts DC to AC A string inverter or microinverters convert DC electricity from the panels to AC power your home uses. Modern inverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from PECO Every kWh your system produces offsets what you buy from PECO at approximately $0.155/kWh. A 6 kW system in Philadelphia produces ~6,900 kWh/year — saving approximately $1,070/year at current PECO rates.
- Excess power flows back to PECO at retail rate Under Pennsylvania PUC net metering rules, excess solar exported to the grid is credited at the full retail rate against your monthly bill. Credits carry forward month-to-month throughout the year. Pennsylvania net metering is available for systems up to 50 kW for residential customers.
- PA SREC market pays you for generation Pennsylvania's AEPS solar carve-out creates a market for Solar Renewable Energy Credits. Every 1,000 kWh your system generates earns one PA SREC. At $25/SREC, a 6 kW Philadelphia system generating ~6,900 kWh/year earns approximately $173/year in SREC income. Sell through SRECTrade.com or a solar broker — PA SREC prices vary with market conditions.
- You claim the 30% federal ITC and PA Sunshine rebate In the installation year, claim a 30% federal ITC on the full installed cost ($5,220 on a $17,400 system), reducing federal income taxes. Also apply for the PA Sunshine Solar Program rebate (up to ~$600 for a 6 kW system) — note that PA Sunshine funding is competitive and not guaranteed. Combined, these reduce your net system cost to approximately $11,580.
FAQ
Common solar savings questions for Philadelphia, PA
How much can I save with solar in Philadelphia, PA?
A 6 kW system in Philadelphia produces roughly 6,900 kWh/year and saves approximately $1,070/year in PECO electricity costs. After the 30% federal ITC ($5,220) and PA Sunshine rebate (~$600), net system cost is about $11,580 — giving a payback of approximately 10.8 years on energy savings alone. With PA SREC income (~$173/year) and the property tax exemption, effective payback improves to 9–10 years.
What is the PA Sunshine Solar Program?
PA Sunshine is a rebate program administered by the Pennsylvania Department of Environmental Protection (DEP) that provides per-watt incentives for qualifying residential solar installations. For a 6 kW system, the rebate can be approximately $500–$600. However, PA Sunshine operates on a first-come, first-served basis and funding is not always available — verify current program status and application requirements at dep.pa.gov before assuming the rebate is accessible.
How do Pennsylvania SRECs work?
Pennsylvania's Alternative Energy Portfolio Standard (AEPS) requires electricity suppliers to source a portion of their supply from solar (Tier I). Every 1,000 kWh a PA solar system generates earns one Solar Renewable Energy Credit (SREC) that can be sold on the PA SREC market. PA SREC prices are typically $15–$40/SREC — lower than DC or NJ but meaningful income. A 6 kW Philadelphia system generates ~6.9 SRECs/year. Sell them through SRECTrade.com, Flett Exchange, or a solar broker.
Does Pennsylvania have net metering?
Yes. Pennsylvania PUC net metering rules (52 Pa. Code §75) require PECO to credit excess solar at the full retail rate. Credits carry forward month-to-month for the annual period, then any unused credits may be reconciled at avoided cost. PA net metering applies to residential systems up to 50 kW — well above typical home solar sizes.
Does Philadelphia get enough sun for solar?
Yes. Philadelphia's 4.65 peak sun hours per day is comparable to cities like Washington, DC and significantly better than Boston or Seattle. When combined with the federal ITC, PA Sunshine rebate, and PECO net metering, Philadelphia solar can be a sound investment with payback periods of 9–11 years on energy savings — shorter if PA SREC prices improve.
How many solar panels does a Philadelphia home need?
A typical Philadelphia home using 500–700 kWh/month needs a 5–8 kW system — roughly 13–21 standard panels at 380–400 W each. Use the calculator above with your monthly PECO bill to estimate your ideal system size. Philadelphia's good solar resource and PECO's ~$0.155/kWh rate make right-sizing important.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://www.dep.pa.gov/Business/Energy/OfficeofPollutionPrevention/AlternativeEnergy/SolarEnergy/Pages/PA-Sunshine-Solar-Program.aspx
- https://www.puc.pa.gov/electric/solar-and-net-metering/
- https://www.peco.com/my-account/billing-and-payment/rates-tariffs
- https://www.srectrade.com/
- https://openei.org/apps/USURDB/
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-18.