Philadelphia Solar Rebates, Incentives, and Tax Credits

If you live in Philadelphia, you are eligible for (up to) 3 different incentives for going solar – one from the federal government and one from your utility.

#1. Everyone: 30% Solar Federal Tax Credit

The Federal Investment Tax Credit for solar has been beefed up by both last year and this year’s stimulus packages, making 2010 a great year to go solar. This is a tax credit (better than a deduction because it counts against the income tax you already owe the IRS) equal to 30% of your out-of-pocket expense for solar.

You will have to file for this credit yourself, but the installer can usually help you find the right forms.*

#2. Pennsylvania Solar Cash Rebate

Some Philadelphia residents are in the unique position of being eligible for two different cash rebates for going solar. Unfortunately, you must pick one solar rebate or the other (not both). Both the local installer and 1BOG’s solar advisors are available to help you calculate which rebate will save you the most $$$ when you install solar panels on your home.

Regardless of where your utility bill comes from:

  • PA Dept. of Environmental Protection provides a cash incentive through its Solar Sunshine Program. Right now this rebate would subsidize $1.25 for every DC watt capacity installed (up to 35% of your out-of-pocket costs or $12,500, whichever is less).

If your electric bill comes from:

  • PPL, you are eligible to receive a cash rebate directly from the utility. Right now this rebate is $2 per watt installed, up to $5,000. Check with the installer or 1BOG’s solar advisors for more information.
  • PECO Energy, your utility does not offer any additional cash rebates at this time.

#3. AECs (Alternative Energy Credits)

AECs are credits you gain by producing renewable energy (1 AEC for every 1,000 kWh of generation). Pennsylvania has created a market for these credits, and homeowners can sell them for profit during the system’s life. Right now, each AEC in Pennsylvania is worth about $400 and an average home solar panel array could earn about $4,000 per year, depending on size and orientation. Solar panels turning your roof into an ATM might sound too good to be true, but it’s not. For more on how AECs (aka SRECs) work, check out our SRECs video.

The bottom line is that if you live in Philadelphia, when you combine these incentives and tax credits with the extra discount negotiated by 1BOG, right now is a GREAT time to go solar.

*We are not tax professionals so please consult with your accountant and solar installer for the nitty-gritty details.

Information on this page was obtained from dsireusa.org

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