Pennsylvania · Tax exemption
PA Solar Energy Property Tax Exemption
Removes a tax burden residential solar owners in Pennsylvania would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Property tax exemption
- stated benefit
- Residential
- eligible customers
- 14.2 yr
- Pennsylvania baseline payback
- 3
- other Pennsylvania programs
What it means
In Pennsylvania, a 6 kW system already pays back in about 14.2 years on ~$1,243/year of modeled savings, and the PA Solar Energy Property Tax Exemption stacks on top of that, on top of any federal credit.
- Property tax e…
- stated benefit
- 14.2 yr
- baseline payback (pre-incentive)
- 4
- Pennsylvania programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Pennsylvania law exempts solar energy systems from property tax assessment.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Property tax exemption
- State electricity rate
- 16.5¢/kWh
- Pennsylvania solar score
- 24/100
How Pennsylvania compares to the U.S. average
Why this incentive matters more (or less) here - Pennsylvania's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Pennsylvania
The market this incentive operates in: total installed solar capacity in Pennsylvania reported to the EIA.
Pennsylvania's solar incentive stack
How this tax exemption sits among Pennsylvania's 3 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- SREC
SREC
1 programs
What this shows Pennsylvania tracks 3 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this incentive fits Pennsylvania's solar picture
The PA Solar Energy Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Pennsylvania's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Pennsylvania averages 4.3 kWh/m²/day of usable sunlight and residential rates of 16.5¢/kWh, producing an estimated 7,534 kWh/year and $1,243 of annual utility offset on a typical 6 kW system costing $17,700. That baseline already implies a 14.2-year simple payback and a 25-year modeled net of roughly $13,375 before this incentive - every dollar this tax exemption delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Pennsylvania has 4 solar incentive programs indexed in DSIRE, including adjacent options like PA Net Metering, Pennsylvania SREC Market. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Pennsylvania's full solar profile, score, irradiance, rates, payback, and every program you can claim. Pennsylvania solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Pennsylvania incentives
Frequently asked questions
What is the PA Solar Energy Property Tax Exemption?
How does the PA Solar Energy Property Tax Exemption work?
Who is eligible for the PA Solar Energy Property Tax Exemption?
How does this incentive affect solar ROI in Pennsylvania?
Are there other solar incentives in Pennsylvania?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.