The incentives are five-fold as follows:
1 - Per watt incentives
For residential installations, the Commonwealth is currently (1st quarter of 2011) offering a $0.75 per watt incentive, up to 10 kw (10,000 watts). This rebate is payable in approximately 3 months after the installation is complete.
For small commercial installations, the Commonwealth is currently offering $0.75 per watt incentive.
2 - Green Tags
The Commonwealth is requiring a year-after-year increasing percentage of renewables in the energy portfolio of the utilities. It has also created the RECs (Renewable Energy Credits) also called SRECs (Solar Renewable Energy Credits) or Green Tags. Each time a home owner produces 1,000 KWH (Kilowatt HOURS), of renewable energy (solar or wind), the homeowner is entitled to an REC, or Green Tag. A free market has been created for Green Tags, so that they can be traded online. The value of a Green Tag in the State of Pennsylvania is currently approximately $200.
3 - Deregulation
An unexpected "incentive" for the installation of renewable energy is the de-regulation of electrical power in the State of Pennsylvania.
4 - Own generation of power
The electric utility bill is reduced with the installation of a solar (or wind) generator.
5 - Added value on the property
Realtors are working with an average added-value of $20 per every dollar of renewable energy produced by the home in a year. This added value is not taxable.