---
title: "Solar Incentives in Pennsylvania and Ohio"
description: "State-level incentives, net metering, SRECs, property tax exemptions, and PPA financing for residential solar in PA and OH."
url: https://www.lifestylesolar.com/solar-incentives
type: marketing
---
# Solar Incentives in Pennsylvania and Ohio

State programs and $0-down PPA financing make solar approachable for Pennsylvania and Ohio homeowners. **Incentives are not guaranteed**, eligibility and amounts depend on your system, financing, tax situation, utility rules, program changes, timing, and other factors. This page is general information only, not tax, legal, or financial advice.

## Federal tax credit (2026 status)

The federal residential solar tax credit was eliminated for homeowners as of **January 1, 2026**. Cash buyers no longer receive a federal tax credit. Federal incentives now flow only to TPO financiers, where they're already baked into PPA pricing.

## $0-down PPA financing

A Power Purchase Agreement lets most of our customers go solar without paying anything upfront. About 95% of our customers go this route.

- $0 upfront, no equipment purchase
- Fixed monthly rate designed to beat your utility bill
- System maintenance and monitoring handled by the owner
- Lock in predictable energy pricing for the contract term

## Pennsylvania incentives

- **Net metering** through Act 213, all investor-owned utilities required to offer it
- **SREC income for cash buyers** (system owners), PA has an active SREC market
- **Sales tax exemption** on solar equipment
- **Local utility rebate programs** may apply in some areas

## Ohio incentives

- **Net metering** through utility programs (AEP Ohio, Duke Energy Ohio, FirstEnergy brands), full retail rate up to 25 kW
- **100% property tax exemption** for the value solar adds to your home
- **No state sales tax** on residential solar equipment
- Ohio's SREC market is much weaker than Pennsylvania's; don't count on big SREC income

## Net metering

When your system produces more electricity than your home uses, the excess flows back to the grid and you receive credits on your utility bill. These credits offset future electricity costs. Both PA and OH require utilities to offer net metering to residential solar customers.

- [Pennsylvania net metering details](/net-metering-pennsylvania)
- [Ohio net metering details](/net-metering-ohio)

## SRECs (Solar Renewable Energy Credits)

For every megawatt-hour (MWh) your system produces, you earn one SREC. PA cash buyers can sell these on the open market for extra income.

**SREC income only flows to homeowners who own their system outright.** PPA customers do not earn SRECs, those flow to the system owner.

## Important to know

- No incentive or savings amount on this page is a promise.
- SREC income only applies to cash purchases, not PPA.
- Incentive programs and amounts can change.
- Your free quote includes a full breakdown of applicable incentives and estimated savings.

[See which incentives apply to you →](/get-a-quote)