How To Make Money With Solar Panels

When people hear “solar panels,” they often think of a small solar installation offsetting energy usage or off-grid panels powering a remote location. There’s nothing wrong with that classic understanding of solar, but the truth is that solar installations have the potential to be much more than that. In this article, we will explain how to make money with solar.

Solar systems can be an investment, providing the potential for profit depending on the size of the installation and the orientation of the building’s roof. As a solar installation company with 20 years of experience, we will do the math to show you how you can make money with solar.

Several factors impact your solar investment, but with the growing green energy movement and expanding solar industry, solar panels remain a financially rewarding decision.

Can You Make Money With Solar Panels?

Yes, your residential or commercial solar installation can generate financial benefits no matter where you are. There are several ways a solar installation can be profitable. The three main ways your solar system can make you money are through the Federal Tax Credit, Solar Renewable Energy Credits (SRECs), and Net Metering. We’ll break each of these down and do some calculations so you can see how going solar can be both a revenue stream and a step toward energy independence.

Reduction in Electricity Bills

Your electric bill might seem like just another necessary expense to power your home. But have you ever considered how much lower it could be with solar? When you compare your annual electricity costs to what you’d pay with solar panels, the savings can be significant.

At Belmont Solar, we don’t just provide a quote—we also show you how much you’re likely to save over 25 years. On average, our customers save around $40,000 over 25 years, which comes out to about $1,600 per year.

So, how does this actually make you money?

Imagine having an extra $1,600 in your pocket every year. If you invested even half—or all—of it, here’s what that could grow into over time:

Investing Half Your Savings From Solar

Investing All Your Savings From Solar

Federal Solar Tax Credit (ITC)

Pennsylvania does not offer state-specific tax credits for solar installations, but there is an exciting 30% Federal Solar Tax Credit available through 2032. This means that solar systems installed between 2023 and 2032 will qualify for a 30% federal tax credit, covering all costs associated with installation.

One important caveat: To benefit from this credit, you must have taxable income. If you don’t pay federal taxes, you won’t be able to take advantage of the credit.

Financially, this means that 30% of your total solar installation cost can be deducted from your federal income taxes. There is no cap on the amount—whether your solar system costs $15,000 or $150,000, you will still receive the full 30% tax credit.

To ensure you qualify, it’s always a good idea to check with your accountant before moving forward with your solar investment.

Solar Renewable Energy Certificates (SRECs)

Pennsylvania’s Solar Renewable Energy Credit (SREC) program offers another way to profit from solar. A grid-tied solar system earns one SREC per megawatt-hour (1,000 kWh) of electricity generated, whether used or sent back to the grid. These SRECs can be sold on Pennsylvania’s market, providing an additional revenue stream.

Since Pennsylvania requires utilities to source a portion of their power from solar energy, demand for SRECs remains steady. The SREC value fluctuates, but as of now, each SREC is worth $31.25 (per SRECTrade).

How Much Can You Earn?

• A 5 kW system generates about 5.5 SRECs per year, earning $171.88 annually and $5,156 over 30 years.

• A 15 kW system generates about 15 SRECs per year, earning $468.75 annually and $14,063 over 30 years.

Since most Belmont Solar installations are around 10 kW, a 15 kW system would be considered large but feasible if roof space allows. A 15 kW system requires about 833 sq. ft. of south-facing roof space, which is roughly half the average American home’s roof area.

If you can handle the upfront cost of a larger system, you can earn thousands over time while also eliminating your electricity bills. A long-term perspective highlights the true financial rewards of solar.

USDA REAP Grant For Commercial Solar

Rural small businesses and agricultural producers may be eligible for a USDA REAP (Rural Energy for America Program) Grant, which helps fund commercial solar installations. The Inflation Reduction Act (IRA) increased REAP funding, allowing grants to cover up to 50% of total project costs through 2027. However, due to high demand, the USDA temporarily paused IRA-funded REAP applications after December 31, 2024, with plans to reopen funding for fiscal year 2026 on July 1, 2025.

Despite this pause, REAP grants through the Farm Bill remain available, covering up to 25% of project costs, with applications being accepted through March 31, 2025.

For small business owners considering commercial solar, this grant can significantly reduce upfront costs, increasing the financial benefits of going solar. Contact Belmont Solar today to learn more about your eligibility for REAP grants and how solar can save you money!

How Much Money Can I Generate With Solar Panels?

The exact amount of money you can make from solar panels depends on several factors. However, on average, Pennsylvania homeowners save approximately $1,600 annually on electricity bills with solar panels. Over 25 years, this amounts to savings of around $40,000!

Factors Influencing Earnings

Before we explore how much money you can make with solar panels, let’s look at the factors that influence your earnings

System Size & Efficiency

The bigger the system, the more energy it produces, and the more you can save. For example, a system designed to offset a $200 monthly electricity bill will save you approximately $84,000 over 30 years. An oversized system that offsets a $300 monthly electricity bill over the same period will save approximately $126,000—a difference of $42,000.

Geographic Location

Areas with better sunlight exposure generate more energy, and the more energy you produce, the more you can earn.

Local Electricity

If you’re selling energy back to the utility company, higher local electricity rates mean higher earnings. Additionally, if you live in an area with high electricity costs, you’ll save significantly more compared to regions with lower energy rates.

Estimating Potential Savings

When considering solar panels, it’s important to look at the long-term financial benefits. Over 30 years, solar can save and generate tens of thousands of dollars through reduced electricity costs, Solar Renewable Energy Credits (SRECs), and more.

Electricity Bill Savings

If your monthly energy bill is $150, that’s $1,800 per year. Over 30 years, you would save approximately $54,000 by generating your own power instead of paying a utility company. Plus, as electricity prices continue to rise—having already increased 103.3% from 1992 to 2022—your savings will only grow.

Solar Renewable Energy Credits (SRECs)

A typical system generating one SREC per month (12 per year) at the current $31.25 per SREC would bring in about $375 annually. Over 30 years, that adds up to $11,250—and even more if SREC values rise.

By looking at the bigger picture, solar panels can realistically put $50,000+ back into your budget while also generating additional income from incentives. The longer your system lasts, the greater the financial return on your investment.

How Much Money Can You Make Selling Electricity to the Grid?

You can also make money from your solar panels by selling electricity back to the grid. This process is known as net metering and can cut back on future electricity costs. 

Net Metering

When your solar panels produce more energy than you need, the surplus is sent back to the grid, earning you energy credits. Later, when your system produces less energy, such as at night, you can use those banked credits to offset your electricity costs.

Additionally, utility companies like PECO in Pennsylvania monitor the balance between the energy you supply to the grid and the amount you consume. At the end of your yearly billing cycle, they reconcile this balance. If you’ve supplied more energy than you’ve used, you may receive a credit or payment for the excess energy.

Compensation Rates

It’s important to note that compensation rates vary by state and utility company, which directly impacts potential earnings. Let’s take a look at how each of these may affect your total compensation. 

State Policies

Different states have varying policies on how much you can earn from solar energy. Some have strong pro-solar policies that guarantee full retail credit for excess energy, while others have weaker net metering policies that offer lower compensation.

Utility Companies

Some utility companies offer full retail credit for electricity, meaning you receive the same rate for excess energy as you would pay to buy electricity. Other companies compensate you at a lower rate, often based on wholesale pricing. Additionally, some utilities adjust their rates based on supply and demand.

It’s also important to find out whether your utility company sets caps on net metering. These caps limit the number of customers eligible to participate. Once the cap is reached, new customers may receive reduced compensation or be required to install battery storage.

Credits can also expire depending on the utility company’s policies. Some allow you to roll over excess energy credits indefinitely, while others reset them periodically, causing unused credits to be lost.

Start Earning Solar Panel Savings Today

If you’re interested in how you can start making money with solar panels in PA, don’t hesitate to contact us today! Our trained solar professionals can answer your questions, evaluate your roof—whether for your home or business—and help you determine how much you could earn with the right-sized solar system.

Some people prefer smaller solar systems to offset part of their monthly electricity bills, while others want a setup that maximizes savings and potential income. Whatever your goals, we custom-design grid-tied and off-grid solar installations to fit your needs. You don’t need an oversized system to benefit from solar, but a well-designed system can save you thousands and even generate additional income over its lifetime.

We’re here to help you make the most of your solar investment. Contact us today, or try our solar panel cost calculator to compare savings based on your electricity usage. We look forward to helping you go solar!