Best Solar Panel Installation Companies in Philadelphia

Philadelphia’s electricity rates have been between 16-20% higher than the national average in recent years, according to data from the US Bureau of Labor Statistics, and residents are increasingly looking to save money and go green by installing solar panels. 

“Philadelphia is perfect for solar,” said Liz Robinson, executive director of the Philadelphia Solar Energy Association, a local educational nonprofit. “The southeastern corner of Pennsylvania has the highest insolation, which means the highest number of solar days, compared to the rest of the state.” 

Solar panels are a good fit for Philadelphia for other reasons, too. The city is built on a north-south rectilinear grid, an ideal orientation for catching rays. Many neighborhoods have minimal tree cover, and flat roofs on the city’s many row houses make installation easier. Robinson notes that because electricity rates tend to be higher there than elsewhere in Pennsylvania, residents can save more on their electric bills. 

“When you install solar panels here in Philly, you’re getting a little faster payback than you would if you were in another part of the state,” she said. 

Here’s a look at the best solar installers in Philadelphia, plus tips on tax incentives, installation factors and payment options for the City of Brotherly Love. 

Best national solar panel companies in Philadelphia

Here’s a look at the best solar installers among national companies that operate in Philadelphia.   

Local solar panel installers in Philadelphia

How to determine which solar company is best for me

In addition to reading online reviews and checking the Better Business Bureau to vet solar installers in Philadelphia, you’ll want to check that companies are certified by the North American Board of Certified Energy Practitioners (NABCEP). Robinson also recommends asking friends and neighbors who have gone solar for referrals to a dependable installer. 

“Look for a company with staying power,” she said. “Because the system lasts so long, and you will have to replace your inverter at some point, you want a contractor who’s highly experienced and is going to be there in 10 or 15 years.”

Cost of solar panels in Philadelphia

The cost of solar panels in Philadelphia depends on several factors, including the size of the system and labor costs. Equipment, including the panels and inverters—which can account for as much as 50% of the price tag—can also make an installation more or less expensive. Factors like electricity rates and incentives like net metering or selling SRECs can also affect your payback period. 

Installing a solar battery along with your system will drive up the cost significantly; these can add anywhere from $12,000 to $22,000 to the total. You’ll also want to get your roof in good shape before installation, so you may need to factor in repairs or replacement. Other costs, like permitting, racking, site surveying and maintenance, also contribute to the final cost.

In Pennsylvania, the average cost to install solar panels is around $3.45 per watt — less than the national average. However, that total cost can be reduced by 30% with tax credits from the Inflation Reduction Act, plus other potential incentives. Related costs like roof repair or replacement and solar batteries can be bundled into that 30% credit.

Philadelphia solar panel installation cost

	Typical system size (kW)	Price per watt	Total installed cost	Cost after 30% federal tax credit
Pennsylvania	5	$3.45	$17,250	$12,075
National average	5	$3.56	$17,800	$12,460

Philadelphia solar panel incentives and rebates

Federal, state and city incentives can make going solar in Philadelphia more affordable. Plus, there’s another long-term perk: Installing solar panels has been shown to increase your home’s property values by a national average of 4.1%, according to a study by real estate listing site Zillow. 

Philadelphians can also take advantage of Solarize Philly, a project of the Philadelphia Energy Authority that has helped 3,300 households install solar since 2010. Residents can access pre-negotiated discounts with vetted solar installers participating in the program. 

Another perk of Solarize Philly, Robinson said, is that the program will manage the process of connecting your system to PECO, the local electric utility. Solarize is currently only available to city residents, but Inflation Reduction Act funding has allowed the program to expand into the entire five-county region. Robinson estimated that Solarize Greater Philadelphia will be available to Bucks, Montgomery, Chester and Delaware counties sometime in 2025.

Philadelphia residential solar incentives

Program	Description
Federal residential clean energy credit	This incentive gives homeowners who install solar panels a tax credit of 30% of the total cost of the project.
Net metering	Pennsylvania’s state-governed net metering policy entitles Philadelphia residents who go solar with the full retail price of the power they sell back to the electric utility as a bill credit.
State-level tax credit	No
Solar Alternative Energy Certificates (SAECs)	Pennsylvania residents can earn one SAEC, the state’s equivalent to an SREC, for every megawatt generated by their system, then sell those credits on the state’s open market.
Philadelphia Solar Rebate	This city program, which provided a rebate of $0.20 per watt for residential solar projects, is currently closed due to budget cuts related to COVID-19. However, Philadelphia residents who installed solar on or after July 1, 2019, can apply for the waiting list and may be eligible for the rebate in the event that funding is restored.
Community solar	No
Sales tax exemption	No
Property tax exemption	No

Installation factors to keep in mind

Before you install solar in Philadelphia, consider these factors that can affect the cost, payback period, and efficacy of your panels. Pennsylvania’s Department of Environmental Protection has also compiled resources for homeowners considering solar that can help you think through the process. 

• Your roof: The orientation and condition of your roof are a big factor in deciding whether solar panels are worth it. Robinson noted that in some areas of Philadelphia, especially lower-income neighborhoods, roofs may have more than the two recommended layers of material, which presents a safety issue when racking and panels are installed. She also recommends white-coating your roof before installation to protect and add longevity to the material and help keep your home cool. A reputable installer can assess your roof and help you make this decision. 
• Tree cover and other shade: While many Philly neighborhoods have relatively little tree cover, neighboring buildings or shade can significantly affect the performance of your panels. In particularly leafy neighborhoods such as Mt. Airy and Chestnut Hill, homes may not be a good fit for solar. 
• Philadelphia state peak sun hours: Compared to the rest of Pennsylvania, Philadelphia receives more sun. The state of Pennsylvania receives between 3.6 and 4.1 peak sun hours each day on average; experts recommend that your home receive at least four peak sun hours per day for solar panel installation to be worth it. 
• HOA regulations: Consider any HOA regulations that might affect your ability to install solar. Pennsylvania does not have solar access laws or legislation that prevents HOAs from banning solar panels for residents. 
• Homeowner’s insurance: Installing solar panels may have an effect on your homeowner’s insurance premiums or on your policy’s coverage limits. 
• Renting vs. owning: The cost and permanence of solar makes installing panels practical for homeowners, not renters. 

How to pay for solar panels in Philadelphia

Though they’ll save you money in the long run, solar panels can be a big upfront investment. It’s important to understand the pros and cons of each payment method, including how factors like interest or fees could affect your payback period. You’ll also want to think about when and how to pay for solar in relation to your current electricity bills. 

Cash

If you’ve got it, cash is the best way to pay for your solar panels. Your payback period won’t be extended by high interest rates or fees on a loan, and you’ll start saving money on your electric bill right away. If you don’t have $15,000 to $30,000 lying around, you can make the most of higher savings interest rates with a high-yield savings account, certificate of deposit, money market account or even US Treasury I-Bonds to grow your nest egg for a future install.

Solar loan

Many solar installation companies offer solar loans or work with third-party lenders who can help you finance your system. Like other loans, you’ll pay interest, and there may be associated dealer fees that drive up the total cost. You may be able to bundle associated costs like roof repair or a solar battery with the purchase. 

HELOC/Home equity loan

Homeowners use home equity loans or home equity lines of credit (HELOCs) to pay for all kinds of home improvements—including solar panels. With these loans, you’re borrowing against the equity you’ve already paid into your home. These loans have some benefits—you can secure them before you shop around for solar, the interest rates are low—but some potential downsides, such increasing your risk of foreclosure and going through a more extensive approval process that involves a home appraisal. 

Personal loan

One advantage of a personal loan for solar panels over a home equity loan is that it’s unsecured—meaning you aren’t at risk of losing your home if you can’t pay the money back. However, interest rates are typically higher, and personal loans may be more expensive in the long run than other types. 

Solar for All

Low-income homeowners in Philadelphia will soon be eligible to participate in Pennsylvania’s Solar for All program, which received $156 million out of $7 billion in federal funding that will be available for loans, leases, subsidies and rebates to install solar in low-income and disadvantaged communities. 

Solar lease

One option for going solar without the big price tag is to lease your solar panels from the installer rather than purchasing them yourself. The process is pretty simple: you sign up, the installer puts in your panels and you benefit from the electricity they generate—while paying a monthly fee to the installer. However, you won’t get to take advantage of solar tax credits, and because you don’t own the panels, you won’t benefit from higher property values or increased home values. 

Power purchase agreement

Pennsylvania also offers power purchase agreements (PPAs). As with a solar lease, the installer owns the panels on your home. You commit to purchasing the power generated by those panels for a period of time, typically 15 to 20 years. The benefits of a PPA include no financial outlay for the installation, and in your first year, you may be paying less to the installer for your electricity than you would to PECO. However, the rate you pay will escalate each year, so you may pay more for solar energy than you would have to the utility. 

Frequently asked questions