Pittsburgh gets less sun than almost any major city east of Seattle. The hills create shade patterns that solar installers in flatter cities never encounter. And the housing stock is older than almost anywhere in the country, with slate roofs, historic district restrictions, and electrical panels from the 1960s. On paper, Pittsburgh looks like a tough place for solar.
But Pennsylvania has full retail net metering, above-average electricity rates, and a competitive solar installer market in the Pittsburgh metro area. The combination is enough to overcome the clouds. For a typical Pittsburgh homeowner with a suitable roof, solar pays for itself in 9 to 12 years and generates $12,000 to $20,000 in net savings over 25 years. Here is what makes Pittsburgh different and how to evaluate whether your specific house is a candidate.
What Solar Panels Cost in Pittsburgh
Solar in Pittsburgh costs approximately $2.80 to $3.20 per watt, which is in line with the Pennsylvania and national averages. A typical 7-kilowatt system costs $19,500 to $22,500 before incentives. The Pittsburgh installer market is competitive, with a mix of local companies and regional installers serving the metro area.
| System Size | Installed Cost (Before Incentives) | After Federal Tax Credit |
| 5 kW | $14,000–$16,000 | $9,800–$11,200 |
| 7 kW | $19,600–$22,400 | $13,700–$15,700 |
| 10 kW | $28,000–$32,000 | $19,600–$22,400 |
The federal tax credit covers 30 percent. Pennsylvania does not offer a state-level solar tax credit. The state’s SREC market exists but Pennsylvania SREC prices are low, typically $20 to $35 per credit, because the state’s Alternative Energy Portfolio Standard has a relatively modest solar requirement. A 7-kilowatt system generates approximately $175 to $300 per year in SREC revenue, which is a modest supplement rather than a primary financial driver.
Pittsburgh-Specific Factors That Affect Solar Viability
Cloud cover. Pittsburgh receives 3.5 to 4.0 peak sun hours per day, which is one of the lowest figures for any major U.S. city. Philadelphia, at the other end of the state, receives 4.0 to 4.5 hours. The difference is the cloud cover that settles over western Pennsylvania from the Great Lakes. A 7-kilowatt system in Pittsburgh generates approximately 8,000 to 9,000 kilowatt-hours per year, compared to 9,500 to 10,500 for the same system in Philadelphia. The lower production extends the payback period by one to two years compared to eastern Pennsylvania.
Hills and shade. Pittsburgh’s topography creates shade patterns that flat-city solar models do not account for. A house on the north side of a hill may lose the sun by 4 p.m. in winter when a house two blocks away on the south-facing slope still has direct light. A site assessment with a solar pathfinder or shading analysis is more important in Pittsburgh than in flat cities because the hills make every roof unique. Do not rely on a satellite-based estimate. Insist on an in-person shading analysis before accepting a production estimate.
Historic districts and slate roofs. Pittsburgh has one of the largest collections of historic homes in the country, particularly in neighborhoods like Shadyside, Squirrel Hill, and the Mexican War Streets. Historic district regulations may restrict solar panel placement to rear-facing roof surfaces that are not visible from the street. Slate roofs, common in older Pittsburgh homes, require specialized mounting hardware and installers experienced with slate. Not all solar installers work with slate. The mounting cost on a slate roof runs $1,000 to $3,000 higher than on an asphalt shingle roof.
Electrical panel upgrades. Many Pittsburgh homes still have original electrical panels from the mid-20th century. A 100-amp panel may not have capacity for a solar system, particularly if the home also has central air conditioning or electric appliances. An electrical panel upgrade to 200 amps adds $1,500 to $3,500 to the project cost. The site assessment should identify this early. If the installer discovers the need for a panel upgrade after the contract is signed, it delays both permitting and installation.
Duquesne Light and Net Metering
Duquesne Light serves the city of Pittsburgh and most of Allegheny County. The utility offers full retail rate net metering for residential solar systems up to 50 kilowatts. Excess generation is credited at the same rate you pay for electricity, with credits rolling over month to month. At the end of the annual billing cycle, any remaining credits are paid out at the avoided cost rate.
Pennsylvania’s net metering law requires investor-owned utilities to offer full retail net metering. This policy is the primary reason solar works in Pittsburgh despite the clouds. If Pennsylvania were to follow Indiana or Utah in phasing out full retail net metering, the economics would deteriorate significantly. The policy has been stable to date, but it is subject to legislative change.
West Penn Power serves some Pittsburgh suburbs and also offers full retail net metering under the state requirement. Rural electric cooperatives in the surrounding counties set their own policies.
How Much You Save on Electricity
Pittsburgh residential electricity rates average 15 to 17 cents per kilowatt-hour, which is above the national average. Pennsylvania’s deregulated electricity market allows homeowners to shop for generation supply separately from distribution. The rate you pay depends on your chosen supplier and whether you are on the default utility rate or a competitive supplier contract.
A 7-kilowatt system generating 8,500 kilowatt-hours per year at 16 cents saves approximately $1,360 per year in electricity. SREC revenue at $25 per credit for 8.5 SRECs adds approximately $210 per year, for a combined $1,570. Against a net system cost of $14,500 after the federal credit, the simple payback period is 9.2 years. After payback, the system generates pure savings for the remaining 15 to 16 years of its warrantied life.
25-Year Financial Picture
Over 25 years, a Pittsburgh homeowner with a 7-kilowatt system can expect net savings of $14,000 to $22,000 after recovering the initial investment. Electricity rates are assumed to increase at 2 to 3 percent annually. The inverter replacement at year 12 to 15 is factored in. The modest SREC revenue contributes during the 15-year eligibility period.
Pittsburgh’s solar economics are middle-tier. They are better than states with low electricity rates and weak net metering like Indiana and Missouri, but worse than states with strong incentives and more sun like Delaware and Maryland. The high electricity rates do most of the work. Without full retail net metering, the numbers would not work.
Cash vs. Loan vs. Lease
Cash purchase produces the highest return. A solar loan through a local lender or credit union allows zero-down installation. Dollar Bank and Clearview Federal Credit Union, both based in Pittsburgh, have offered solar or home improvement loans at rates competitive with national solar lenders. The monthly loan payment on a 12-year solar loan at 5 to 7 percent is typically comparable to or slightly lower than the pre-solar electric bill.
A lease places a third-party-owned system on your roof. The third party keeps the federal tax credit and the SREC revenue. In a city with high electricity rates, owning the system and capturing the full value of the savings produces significantly higher lifetime returns. Leasing is most appropriate for Pittsburgh homeowners who cannot use the federal tax credit.
When Solar Is Not Worth It in Pittsburgh
Heavy shade from hills or trees. Pittsburgh’s combination of topography and mature tree canopy shades many roofs. A roof that receives less than 3 hours of direct sun per day produces too little to justify the investment. A shading analysis during the site assessment determines this.
Slate roof with no experienced installer available. Slate roofs require specialized mounting. If the installers you have quotes from do not have slate experience, do not let them learn on your roof.
North-facing roof on a hillside. A north-facing roof at Pittsburgh’s latitude already produces 40 to 50 percent less than a south-facing roof. Add hillside shading and the production may be too low to recover the cost.
Historic district restrictions. If your historic district limits panels to a small rear roof area that receives little sun, the available generation may not justify the fixed costs of installation.
Moving within seven years. The 9 to 10 year payback requires staying in the home long enough to reach breakeven.
Frequently Asked Questions
Can you install solar panels on a slate roof?
Yes, but it requires specialized mounting hardware and an installer experienced with slate. Standard roof penetrations that work on asphalt shingles can crack slate tiles. Slate-compatible mounting uses brackets that hook under the slate tiles without drilling through them or replaces individual slate tiles with metal flashing panels that the solar mounts attach to. The cost is $1,000 to $3,000 higher than a standard shingle installation. Not all solar installers work with slate. Ask specifically about slate experience when getting quotes. If an installer says they can do it but has no photos of previous slate installations, find another installer.
Does solar work on all the cloudy days in Pittsburgh?
Yes, at reduced output. Solar panels generate 10 to 25 percent of their rated output on heavily overcast days and 30 to 50 percent on bright overcast days. The annual production estimate from a reputable installer already accounts for Pittsburgh’s cloud cover. The estimate is based on historical weather data for your specific location. You do not need to subtract a cloudy-day penalty yourself. The production number you are quoted is the expected real-world output including clouds.
Are Pennsylvania SRECs worth the effort of selling them?
Pennsylvania SREC prices of $20 to $35 are modest, but the effort to sell them is minimal. An SREC aggregator handles registration, tracking, and sales for a small commission. Your installer sets up the aggregator relationship. You receive a check or direct deposit a few times a year. The annual revenue of $175 to $300 from a typical residential system is not life-changing, but it is also not zero, and the effort to collect it is near zero. There is no reason to leave SREC money on the table.
