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.

Irradiance
Pennsylvania: 4.3 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Pennsylvania: 16.5¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Pennsylvania: 14.2 yr
U.S. avg: 14.2 yr

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.

-200 MW0 MW200 MW400 MW600 MW800 MW1.0 GW 2008201120142017202020232024 876 MW
Pennsylvania now has about 876 MW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Pennsylvania's solar incentive stack

How this tax exemption sits among Pennsylvania's 3 tracked programs, by type

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.

Source DSIRE incentives registry As of 2024

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.

Frequently asked questions

What is the PA Solar Energy Property Tax Exemption?
The PA Solar Energy Property Tax Exemption is a tax exemption available to residential solar customers in Pennsylvania. The stated benefit is Property tax exemption.
How does the PA Solar Energy Property Tax Exemption work?
Pennsylvania law exempts solar energy systems from property tax assessment.
Who is eligible for the PA Solar Energy Property Tax Exemption?
The program is available to residential customers in Pennsylvania. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Pennsylvania?
Pennsylvania has an estimated 14.2-year payback for a 6 kW system before incentives, with about $1,243/year in modeled savings. A tax exemption like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Pennsylvania?
Yes - Pennsylvania has 4 solar incentive programs tracked in DSIRE, including PA Net Metering, Pennsylvania SREC Market. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

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.