Solar Alternative Energy Credits

How They Work

Solar Alternative Energy Credits (SAECs) are credits that each represent 1,000 kilowatt-hours of electricity produced by a residential solar or photovoltaic (PV) system. The PV system can be any size and can earn SAECs when the system delivers the electricity it generates to Duquesne Light Company. Once generated, owners of residential PV systems can sell their SAECs on the open market. Since the beginning of 2023, the price of SAECs in Pennsylvania has ranged from $34 to $48.

SAECs differ from net metering in that net metering allows PV system owners to send extra solar energy generated by their PV system back into the electric grid. In return, the owner earns credit that offsets the cost of electricity they pull from the grid in the future. Pennsylvania PV system owners can participate in net metering while selling SAECs. Find more information about SAECs here.

What Assistance Is Available for Me?

Producing SAECs requires only a “qualified alternative energy source,” which includes PV systems regardless of size, located in Pennsylvania:

The federal government offers a tax credit of up to 30% of the cost of the purchase and installation of a residential PV system (no maximum). Find more information about federal tax credits for residential PV systems here.

What Products Are Eligible?

Producing SAECs requires only a “qualified alternative energy source.” There are no specifics regarding what PV systems must be purchased and installed to begin producing SAECs.

Important Dates

The Alternative Energy Portfolio Standards Act of 2004 (AEPS) currently states that alternative energy obligation levels are for “2021 and beyond.” Future legislation may change the alternative energy obligation levels, but there is no stated end date to the program. The federal tax credits are available for products purchased and installed between January 1, 2023, and December 31, 2032.