Pennsylvania Heat Pump Rebates

What's available in Pennsylvania

Pennsylvania does not have a state-funded heat pump rebate program outside of the federal IRA-funded Home Energy Rebate Programs (HEAR/HEEHRA and HOMES), which the PA Department of Environmental Protection has not yet launched. Most available rebates come from regulated electric utilities operating Act 129 energy efficiency programs — PECO, PPL Electric Utilities E-Power, Duquesne Light Watt Choices, and FirstEnergy (Met-Ed, Penelec, Penn Power, West Penn Power) — plus PPL's income-qualified enhanced tiers. Act 129 moved from Phase IV to Phase V on June 1, 2026, and the utilities are at different stages: PPL published its Phase V amounts effective June 1, 2026 (air-source $225–$325 standard, $350–$475 for households at or below 250% FPL; mini-split $225; heat pump water heater $400/$500; ground-source $500), and Duquesne Light published Phase V instant discounts in August 2026 ($215 air-source, $80 mini-split, $150 heat pump water heater), both listed above. FirstEnergy's Pennsylvania companies state they are still finalizing new programs; their prior up-to-$500 air-source rebate covered purchases only through May 31, 2026, so there is currently no confirmable FirstEnergy PA heat pump rebate. PECO's rebate pages are JavaScript-gated and could not be confirmed against a primary source; third-party reports cite $200–$300 for air-source heat pumps, so check directly with PECO. Pennsylvania's federal Home Energy Rebates (branded Penn Energy Savers — HER and HEAR) are low-to-moderate-income only and, per PA DEP, remain pending final DOE approval, with DEP reviewing new DOE guidance issued June 1, 2026; no applications are open. The §25C federal credit expired December 31, 2025, and the §25D geothermal credit was also repealed by the One Big Beautiful Bill Act effective December 31, 2025.

HEEHRA in Pennsylvania

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Pennsylvania is finalizing program rules.

How heat pump rebates work in Pennsylvania

Pennsylvania has no state-funded heat pump rebate program in 2026. The Pennsylvania Department of Environmental Protection administers the federal IRA-funded Home Energy Rebate Programs (HEEHRA and HOMES), which are rolling out in phases through 2025-2026, but the state has not appropriated separate funds for heat pump incentives outside that federal pass-through. What Pennsylvania does have is Act 129 — a 2008 law that requires the largest electric distribution utilities to run energy-efficiency programs, including residential rebates. Most of the meaningful 2026 incentives flow through these utility Act 129 programs.

The Act 129 utilities are PECO (southeastern PA, including Philadelphia), PPL Electric Utilities (eastern and central PA), Duquesne Light (Pittsburgh metro), and FirstEnergy's four Pennsylvania subsidiaries — Met-Ed, Penelec, Penn Power, and West Penn Power. Each runs a residential rebate program with its own brand: PECO Smart Energy Saver, PPL Electric Utilities E-Power, Duquesne Light Watt Choices, and FirstEnergy Energy Efficient Products. Heat pump rebates under these programs typically fall in the $300-$800 range for air-source heat pumps and ductless mini-splits, with smaller per-tonnage adders for higher-efficiency tiers. PPL also runs PPL Energy WISE for income-qualified customers.

The realistic 2026 stack for a Pennsylvania homeowner is one Act 129 utility rebate plus state programs where launched. Two of the four Act 129 utilities publish confirmable Phase V heat pump amounts: PPL Electric (air-source $225–$325 standard or $350–$475 for households at or below 250% FPL, ductless mini-split $225 or $350 income-qualified, heat pump water heater $400 or $500 income-qualified, ground-source $500) and Duquesne Light (instant discounts of $215 air-source, $80 mini-split, $150 heat pump water heater as of August 2026) — both of which we list. FirstEnergy PA says it is still finalizing its new programs and its prior up-to-$500 rebate ended with purchases through May 31, 2026, so there is no live FirstEnergy heat pump rebate right now. PECO exposes its amounts only through a JavaScript-gated portal we couldn't confirm against a primary source, so we don't publish a number for it; check directly with PECO. PECO, Duquesne Light, and FirstEnergy PA run active programs but expose their amounts only through JavaScript-gated portals we couldn't confirm against a primary source, so we don't publish numbers for them; check directly with your utility. Note that Act 129 moved from Phase IV to Phase V on June 1, 2026, so amounts may be restated mid-year. Pennsylvania's federal Home Energy Rebates (Penn Energy Savers) are low-to-moderate-income only and, per PA DEP, had not launched to homeowners as of May 2026. The federal §25C tax credit was repealed at the end of 2025; the federal §25D 30% geothermal credit was also repealed effective December 31, 2025.

Pennsylvania rebate programs

4 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: replacing a Philadelphia gas furnace + AC

Devon owns a 1,800 sq ft twin home in West Philadelphia, served by PECO. His 24-year-old gas furnace and central AC are both end-of-life. He gets quotes for a 3-ton ducted air-source heat pump (16.2 SEER2 / 8.5 HSPF2) with a retained gas furnace as backup (a dual-fuel configuration, since Philadelphia winters dip into the teens for several days each year). Quoted prices range $13,400 to $16,200; he picks a PECO Smart Energy Saver participating contractor at $14,200.

PECO's Smart Energy Saver heat pump rebate at the 16.2 SEER2 / 8.5 HSPF2 tier is approximately $500 (verify current 2026 amounts directly with PECO before relying on this figure). The contractor handles the rebate application; Devon receives a check 8-10 weeks after install. There is no statewide PA rebate to layer on top, and the federal §25C credit is gone for 2026 installs. Net stack: roughly $500 in rebates against $14,200 installed cost.

If Devon's household income were below 80% of Philadelphia's AMI (roughly $69,000 for a family of three in 2026), he would eventually qualify for PA HEEHRA when the DEP fully launches the program — adding up to $8,000 toward the heat pump. As of September 2026 PA HEEHRA has not launched at all — DEP is still awaiting final DOE approval — so Devon cannot count on it for a 2026 install; sign up for updates at pennenergysavers.com and confirm with the DEP before assuming you qualify.

Devon's neighbor Anya in Pittsburgh is on Duquesne Light, not PECO. The same install would qualify for Duquesne's Watt Choices instant discount of $215 for a ducted air-source heat pump at SEER2 16.3 / HSPF2 8.2 or better, applied at the point of sale by a DLC trade ally contractor rather than as a mail-in rebate (Duquesne's 2026 program structure differs from PECO's). The lesson: in Pennsylvania, your specific Act 129 utility determines your rebate, and the four utilities have meaningfully different program designs.

Choosing a contractor in Pennsylvania

Pennsylvania licenses HVAC contractors through the Home Improvement Contractor Registration program at the Pennsylvania Office of Attorney General — every contractor doing more than $5,000 of residential work per year must be registered. The HIC number must appear on contracts. Verify your contractor's registration at attorneygeneral.gov/hic. Note that this is registration, not a competency license — Pennsylvania does not have a statewide HVAC competency license, so verifying the contractor's experience and references matters more than in licensed-trade states.

Most Pennsylvania Act 129 utility rebates require the contractor to be enrolled in the utility's program. PECO's Smart Energy Saver, PPL's E-Power, Duquesne's Watt Choices, and FirstEnergy's Energy Efficient Products each maintain their own contractor lists. A contractor not enrolled in your specific utility's program cannot file the rebate after the install. Ask before signing: 'Are you enrolled in [utility]'s [program name] for residential heat pump rebates, and will you submit the application?'

Pennsylvania's climate is genuinely cold — Philadelphia averages 25°F design temperature, Pittsburgh 5°F, Erie -5°F. A non-cold-climate heat pump in Pittsburgh or Erie can deliver poor performance below 5°F and may push the homeowner toward expensive electric resistance backup. For homes in zones 5 and 6 (most of Pennsylvania except the southeast corner), specify a NEEP Cold-Climate Air-Source Heat Pump Specification (CCASHP) listed system. Dual-fuel configurations (heat pump primary, gas furnace backup) are also defensible engineering choices in PA and remain eligible for most Act 129 rebates.

Common pitfalls for Pennsylvania homeowners

• Assuming PA HEEHRA is fully open. PA HEEHRA / HEAR (Penn Energy Savers) has not launched. As of its latest update, the DEP says it is still awaiting final DOE approval and reviewing new DOE guidance issued June 1, 2026; pennenergysavers.com only collects sign-ups for updates. No measure, including heat pumps, is currently accepting applications. Confirm directly with the DEP that the heat pump space conditioning phase is accepting applications in your county before factoring HEEHRA into your budget.
• Confusing FirstEnergy's four PA subsidiaries. FirstEnergy operates four separate distribution utilities in Pennsylvania (Met-Ed, Penelec, Penn Power, West Penn Power) under the FirstEnergy Energy Efficient Products program. Rebate amounts and contractor enrollment lists can differ across the four. Look at your bill to identify which FirstEnergy subsidiary serves you — the bill names it explicitly.
• Ignoring weatherization prerequisites. Several PA Act 129 utilities require an in-home energy audit (sometimes free, sometimes $99-$300) before a heat pump rebate is approved. PECO's program has had this prerequisite in past program years; PPL's E-Power program has historically as well. Schedule the audit before the install, not after.
• Sizing for cooling only in PA's climate. Pennsylvania has more heating-degree-days than cooling-degree-days. A heat pump sized purely on AC tonnage can be undersized for heating and over-rely on backup electric resistance, which spikes winter bills. Ask your contractor for a Manual J load calculation that explicitly shows both the cooling design load and the heating design load — the heating load typically dominates in northern and western PA.
• Counting on §25C in 2026. The federal residential energy property credit (§25C) covered up to $2,000 for heat pumps in 2025 but was repealed effective December 31, 2025 by the OBBBA. PA installs completed in 2026 cannot claim it. Several Pennsylvania HVAC contractor sites still cite the $2,000 figure as currently available — it isn't.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

If you can't afford a replacement in Pennsylvania

Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:

• Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
• LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Pennsylvania LIHEAP contacts.
• USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
• Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Pennsylvania currently have funds.

Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.

FAQ