Commercial Solar Incentives in Pennsylvania

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Pennsylvania SREC program

Pennsylvania Solar Renewable Energy Certificates (SRECs) are tradeable credits earned for every 1000 kWh of solar electricity a given solar system generates. These credits can then be sold at market price (~$22) and ultimately help to offset the cost of a commercial solar project. That means that on average a 150kW system could yield ~$4000 per year in SREC income.

Net Metering

The Pennsylvania Public Utilities Commission (PUC) demands that investor-owned utilities in PA must offer net metering to commercial buildings producing excess energy from solar systems. Net excess generation is measured monthly, then credited at the full retail kWh rate on the next month’s bill. Credits carry over month to month, and excess credits are paid to the customer at the end of the year at the utilities’ price-to-compare.

Utility-Specific Rebate Programs 

Though Pennsylvania does not have a statewide rebate program, some local utilities offer energy-efficiency rebates for commercial solar systems. For example, PPL Electric Utilities offers an incentive program of $0.08 per kWh saved (annually). This rebate can cover up to 50% of the project cost (max of $500,000) and significantly benefit the economic case for your commercial solar project. Our vetted local installers are experts in PA’s incentive landscape and can help you discover if your utility offers a relevant rebate program.  

Greentech Renewables can connect you with a trusted Pennsylvania solar installer to analyze your commercial solar potential and incentive eligibility. 

CONNECT WITH A PA INSTALLER

Select Each Federal Solar Benefit to Read More 

30% Business Energy Investment Tax Credit (ITC) - Deadline to receive credits December 31st, 2027!

The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. Connect with a local installer to find out if you qualify for additional tax credits.

However, your solar system must be completed and placed in service by December 31st, 2027 in order to claim these tax credits. Get in touch with one of our certified installers to learn more about receiving commercial solar incentives. 

 

3-6 Year Average Investment Recovery 

Most commercial solar systems pay for themselves in as little as 3 to 6 years considering tax incentives, energy savings, and depreciation benefits. With a system lifespan of  25+ years, ROI can be substantial. 

15-20% Average Return on Investment 

Exact ROI varies depending on system size, energy consumption, utility rates, and several other factors. Your installer will perform a complimentary analysis of your current energy spend and solar potential to determine your ROI. 

25-Year Equipment Warranties

All of our equipment has been pre-qualified based on reliability and performance history and is fully backed by product guarantees.

Business owners can leverage various federal solar incentives in combination with Pennsylvania's existing programs. Together, these incentives can substantially lower the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Pennsylvania may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Pennsylvania business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Pennsylvania Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Pennsylvania installer to see which incentives can contribute to your solar system. 

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