Pennsylvania may not be among the top states in the United States of America in solar yet but it has a lot of potential to utilize solar. Solar prices have fallen about 53% over the last ten years. The average solar payback period, i.e. the average duration it takes for property owners who install solar panels to recover their initial investment through electricity savings, is 10.40 years. Pennsylvania also offers a lot of incentives to invest in solar. And, the new Inflation Reduction Act makes it even more attractive. Let us find out how –
Federal Solar Investment Tax Credit (ITC)
With the new Inflation Reduction Act, there have been changes to the investment tax credit (ITC), also known as the federal solar tax credit. A homeowner or business in Pennsylvania will get a deduction of 30 percent of the cost of installing a solar energy system from their federal taxes. The 30 per cent tax credit will be available until 2033. Post that, it will drop to 26 per cent, subject to other rulings. Do remember that this is applicable when you own a solar system. You won’t receive this benefit if you have signed a solar lease or PPA.
Net metering is the policy that allows people with solar to get a credit on their electric bill for the energy they produce from their system. Solar energy owners can generate power and store it in batteries. Then, they can use it later when needed or sell the excess energy back to the grid. At the end of the 12-month billing cycle, the utility company will compensate net-metered generators for the extra credit at the retail price of electricity minus the distribution component.
Solar Renewable Energy Certificates (SRECs)
Solar renewable energy certificates (SRECs) are tradable certificates earned by home solar owners for every megawatt-hour of solar energy they produce. They are similar to carbon credits.
One SREC is generated for every megawatt-hour (MWh) of electricity your solar energy system produces. The owners of solar panel systems – from individual homeowners to large-scale solar developers can sell SRECs to utilities through the state’s SREC market. As of September 2022, the price is around $40.
An SREC has a useful life of three years. So, for example, if you generated SRECs in 2021, they will be valid towards the 2021, 2022, or 2023 compliance periods.
Go with GreenBrilliance
It makes sense to go solar in Pennsylvania. GreenBrilliance operates in your state and can deliver high performance, quality solutions at the best prices. Contact us @ 703-657-0090 or email@example.com to begin your solar journey. Soon, you will start saving money and contributing to a greener, cleaner planet.