PPL Electric is required by Pennsylvania law to offer full 1:1 retail-rate net metering to residential solar customers under systems up to 50kW. Every kilowatt-hour Allentown’s solar panels export to PPL’s grid during a billing period earns a credit at PPL’s current residential retail rate — approximately 19.5¢ per kilowatt-hour. Monthly excess credits roll forward indefinitely and reconcile at an annual true-up each May 31. Pennsylvania’s net metering framework includes a notably homeowner-friendly provision: if your system produces more electricity than you consume over the full year, PPL is required to issue you a cash payment for the net surplus at PPL’s price-to-compare rate (the generation component, approximately 7–10¢ per kilowatt-hour). This cash-out provision — unlike the credit forfeiture at year-end reset that applies in Oregon or the reduced avoided-cost payout in Florida — means Allentown homeowners are not penalized for modest oversizing the way they might be in other markets.
PPL’s two-year distribution rate freeze (mid-2026 through mid-2028) locks the distribution portion of the bill at current levels during that period. The generation supply rate may still fluctuate as PPL’s default supply rate adjusts with market conditions, but the distribution component — a significant portion of the total bill — provides near-term predictability. Beyond 2028, PPL has signaled continued investment in grid modernization and infrastructure that may support future rate increases; the rate freeze window is worth noting in financial projections but should not be treated as a permanent rate cap.
Every Pennsylvania solar homeowner who purchases their system earns one Alternative Energy Credit (AEC — Pennsylvania’s name for SRECs) for every 1,000 kilowatt-hours of solar electricity produced. AECs trade on an open market and currently fetch approximately $25–$50 per credit, with prices varying based on supply and demand within Pennsylvania’s Alternative Energy Portfolio Standards compliance market. A typical Allentown system producing 10,000–12,000 kilowatt-hours annually generates 10–12 AECs per year — worth approximately $250–$600 annually at current market rates. AECs have a three-year useful life from generation date; they must be sold within three years or they expire worthless. Register your system with PJM-GATS (the mid-Atlantic generation tracking system) after interconnection; most Allentown installers handle this as part of the installation process. Sell through aggregators like SRECTrade or Flett Exchange, which manage market timing for a small commission.
Pennsylvania’s AEC market is weaker than New Jersey’s fixed SREC-II at $85/MWh — PA’s open-market prices are approximately one-third to one-half of NJ’s guaranteed rate. The PRESS Act, bipartisan legislation pending in Harrisburg that would raise Pennsylvania’s solar carve-out from 0.5% to 5.5%, could dramatically increase demand for AECs and push prices toward NJ levels if passed. Allentown homeowners who install now capture any future price appreciation for the life of their system, since AEC income is based on ongoing production regardless of when the system was installed.
Lehigh Valley solar installations typically run $2.70–$3.10 per watt in 2026 — somewhat below Philadelphia pricing, reflecting Allentown’s competitive installer market. The area’s active solar market, with multiple established Lehigh Valley contractors competing alongside broader Pennsylvania installers, produces favorable pricing for homeowners who get multiple bids. A typical Allentown system of 8kW–11kW costs approximately $21,600–$34,100 before incentives. Pennsylvania charges 6% sales tax on solar equipment — approximately $1,296–$2,046 in additional cost with no state exemption. No property tax exemption applies in Pennsylvania. No federal residential ITC for cash or loan purchases in 2026. After the sales tax cost, a cash-purchase Allentown system’s break-even runs approximately 9–12 years at PPL’s current rate, with 25-year savings estimates in the $25,000–$45,000 range depending on system size, AEC income, and future rate trajectory. Solar leases and PPAs are available in Pennsylvania through national installers; the installing company claims the commercial ITC and passes savings through lower rates.
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