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 (HEEHRA and HOMES), which the PA Department of Environmental Protection is rolling out in phases through 2025–2026. Most available rebates come from regulated electric utilities operating Act 129 energy efficiency programs — PECO Smart Energy Saver, PPL Electric Utilities E-Power, Duquesne Light Watt Choices, FirstEnergy (Met-Ed, Penelec, Penn Power, West Penn Power) Energy Efficient Products, and PPL Energy WISE for income-qualified customers — typically in the $300–$800 range for air-source and ductless heat pumps. Of these, only PPL Electric publishes confirmable heat pump rebate amounts on its own program pages (listed above); PECO, Duquesne Light, and FirstEnergy PA run active programs but expose amounts only through JavaScript-gated portals that could not be confirmed against a primary source, so they are not itemized here — check directly with your utility. Note that Act 129 transitioned from Phase IV to Phase V on June 1, 2026, so utility amounts may be restated mid-year. Pennsylvania's federal Home Energy Rebates (branded Penn Energy Savers — HER and HEAR/HEEHRA) are low-to-moderate-income only and, per PA DEP, had not launched to homeowners as of May 2026 pending final DOE approval. The §25C federal credit expired December 31, 2025; the §25D geothermal credit (30% through 2032) still applies.

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. Of the four Act 129 utilities, only PPL Electric currently publishes confirmable heat pump amounts on its own pages — air-source $225–$475, ductless mini-split $225–$350, heat pump water heater $400–$500, and ground-source $500 — which we list. 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% credit remains for geothermal only.

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. The PA HEEHRA timeline as of mid-2026 is partial — some phases are accepting applications, others aren't — and which phase covers heat pump space conditioning specifically is worth confirming directly with the DEP before assuming you qualify.

Devon's neighbor Anya in Pittsburgh is on Duquesne Light, not PECO. The same install would qualify under Duquesne's Watt Choices residential program at a different rebate amount (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 launched in phases starting late 2025. The phases for individual measures (water heaters, electrical panel upgrades, weatherization) opened first, with full heat pump space conditioning rebates rolling out through 2026. 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.

FAQ