Pennsylvania Heat Pump Rebates & Incentives (2026)
Pennsylvania's utility rebates are coming back online. Act 129 Phase V began June 1, 2026, and three of the five rebate-paying utilities — PECO, PPL, and UGI Electric — have published new heat pump rebate schedules that are claimable today. Duquesne Light's program is "currently being refreshed," and FirstEnergy's portal still shows only Phase IV closeout information. Federal tax credits ended December 31, 2025, and Penn Energy Savers still has not launched. This guide covers each utility's current amounts, the Philadelphia-area EAP fall rebate (contract window August 3–November 13), the 1% HEELP loan, and what to watch for.
Updated July 13, 2026 — verified against official program sources
Rates and program availability may change after this date.
Pennsylvania
Limited / Region-Dependent
Act 129 Phase V (June 2026–May 2031) is rolling out: PECO (heat pumps up to $300), PPL ($225–$325 standard, $350–$475 for households at or below 250% FPL), and UGI ($500 ASHP; mini-splits $175–$300/ton up to $1,500) have published claimable schedules, while Duquesne Light's program is "currently being refreshed" and FirstEnergy has not posted Phase V amounts. Philadelphia-area EAP rebates ($250–$1,650) are published for the Fall 2026 program (contracts Aug 3–Nov 13). Penn Energy Savers ($258.9M HEAR/HOMES) still has not launched — DEP is revising the program per DOE's June 1, 2026 guidance. Federal 25C/25D ended Dec 31, 2025. Also available: HEELP (1% APR) and KEEP loans, WAP, LIHEAP, and Philadelphia's Built to Last.
Sources:
The short version
⚠ Utility rebates: rolling out territory by territory
Act 129 Phase V began June 1, 2026. PECO, PPL, and UGI Electric have published new rebate amounts and are accepting applications. Duquesne Light's program is being refreshed and FirstEnergy has not posted a Phase V schedule. Confirm your utility's current amounts before you buy.
✓ Low-interest loans available now
HEELP: $1,000–$10,000 at 1% fixed APR for 10 years. KEEP: $2,500–$25,000 at below-market rates. Both are open today and stack with utility rebates.
✓ Income-based help is unaffected
Weatherization Assistance (at or below 200% FPL), LIHEAP crisis grants, and Philadelphia's Built to Last (100% coverage for low-income homeowners) never ran on Act 129 money and are open now.
✗ Federal tax credits expired
Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. Equipment installed in 2026 does not qualify even if purchased in 2025.
⚠ Penn Energy Savers has not launched yet
Pennsylvania was allocated $258.9 million in HEAR/HOMES funding, and administrators are hired (EGIS BLN for HEAR, Resource Innovations for HOMES). On June 1, 2026, DOE issued new program guidance; DEP is revising the program to comply before launching. No confirmed launch date. Do not sign contracts contingent on Penn Energy Savers funding until the program officially opens.
Federal tax credits: both expired
Section 25C (Energy Efficient Home Improvement Credit) and Section 25D (Residential Clean Energy Credit) both terminated for any property placed in service after December 31, 2025. The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, accelerated the sunset of both credits seven to nine years early. A heat pump purchased in 2025 but installed in January 2026 does not qualify — the "placed in service" date is the controlling event. For more details, see our federal heat pump tax credit explainer.
Section 25C previously provided 30% of project costs up to $2,000 per year for heat pumps and heat pump water heaters. Section 25D provided 30% with no dollar cap for geothermal heat pump systems.
Homeowners who completed qualifying installations on or before December 31, 2025 can still claim the credit on their 2025 tax return using IRS Form 5695. Unused Section 25D credits from prior years can carry forward.
Penn Energy Savers (HEAR/HOMES) — not yet launched
Pennsylvania was allocated $258.9 million ($129.2M for HEAR, $130M for HOMES). Program administrators have been hired — EGIS BLN for HEAR (December 2025) and Resource Innovations for HOMES (August 2025). As of July 2026 the program has not launched. On June 1, 2026, DOE released new program guidance; DEP's Energy Programs Office is working to bring the program design into compliance before opening it to consumers. DEP estimates the program will serve 12,000–16,000 residents.
HEAR rebate amounts (when live)
| Income tier | Coverage | Heat pump cap | Household cap |
|---|---|---|---|
| Below 80% AMI | 100% of costs | $8,000 | $14,000 |
| 81–150% AMI | 50% of costs | $8,000 | $14,000 |
| Above 150% AMI | Not eligible for HEAR (may qualify for HOMES) | ||
The OBBBA did not rescind HEAR/HOMES funding. These are direct federal grants to states, not tax code provisions. Funds remain available until depleted or September 30, 2031. Sign up for updates at pennenergysavers.com.
⚠ Common mistake: signing contracts contingent on Penn Energy Savers
Penn Energy Savers cannot fund work completed or equipment purchased before application approval. Do not rely on contractor marketing about HEAR amounts until the program officially opens. Verify directly with the PA Department of Environmental Protection.
Utility rebates — Phase V is rolling out
⚠ Phase V schedules are appearing utility by utility
Act 129 Phase IV closed to new purchases on May 31, 2026, and Phase V (June 1, 2026 through May 31, 2031) is now in effect. As of July 10, 2026, PECO, PPL, and UGI Electric have published Phase V rebate amounts — shown below — while Duquesne Light and FirstEnergy have not. Base amounts at PPL are lower than Phase IV, with larger income-qualified tiers added. Verify with your utility before counting on any rebate.
All Pennsylvania utility rebates operate under Act 129, and the amount you receive depends entirely on your electric utility. Here is where each stands.
PECO (Philadelphia area — ~1.6M customers)
PECO's heating and cooling rebate schedule is live: applications for equipment purchased or installed on or after June 1, 2026 must be received within 90 days of purchase or installation. (Phase IV closeout: paper applications for pre–June 1 purchases are due July 20, 2026; online applications are due July 31, 2026.) The separate EAP rebate — covered below — can be combined with PECO rebates.
| Equipment | Rebate (as listed July 10, 2026) |
|---|---|
| ENERGY STAR air-source heat pump (SEER2 15.2–17.0, EER2 11.0, HSPF2 7.8+) | $200 |
| ENERGY STAR air-source heat pump (SEER2 17.1+, EER2 11.0, HSPF2 7.8+) | $300 |
| ENERGY STAR ductless mini-split heat pump | up to $300 |
| ENERGY STAR central air conditioning | up to $200 |
| Heat pump / central A/C maintenance | up to $50 |
| ECM fan motor | $50 |
PPL Electric Utilities (eastern/central PA — ~1.4M customers)
PPL published its Phase V rebate schedule on June 1, 2026 (Docket M-2025-3057329). Base rebates are lower than Phase IV, but households at or below 250% of the federal poverty level qualify for enhanced amounts, and households at 0–200% FPL can access no-cost upgrades through WRAP. Applications must be postmarked within 180 days of installation.
| Equipment | Rebate |
|---|---|
| Ducted ASHP Tier 1 (SEER2 ≥15.2, HSPF2 ≥7.8) | $225 standard / $350 enhanced (≤250% FPL) |
| Ducted ASHP Tier 2 (SEER2 ≥16.3, HSPF2 ≥8.2) | $325 standard / $475 enhanced |
| Mini-split heat pump (SEER2 ≥15.2, HSPF2 ≥7.8) | $225 standard / $350 enhanced |
| Heat pump water heater (UEF ≥3.3) | $400 standard / $500 enhanced |
| Ground-source heat pump | $500 |
| Multi-measure bonus (insulation/air sealing + two major measures) | $350, enhanced tier only |
Duquesne Light (Pittsburgh area — ~600K customers)
✗ No heat pump rebate available right now
Duquesne Light's residential rebate program closed to new purchases on May 31, 2026, and as of July 10, 2026 its rebate hub still states the program is "currently being refreshed" with no published restart date or amounts. What is live today: $50 refrigerator/freezer recycling, the whole-house energy audit, and the income-qualified energy assessment.
Duquesne filed its Phase V plan (Docket M-2025-3057325) on December 1, 2025, and its residential rebate programs are now administered by Franklin Energy. When new amounts post, they will appear on Duquesne's energy rebates hub — check it before you buy.
FirstEnergy — Met-Ed, Penelec, Penn Power, West Penn Power
FirstEnergy's Pennsylvania rebate portal is back online, but as of July 10, 2026 it still describes only the Phase IV program — rebates for products "purchased between June 1, 2021 and May 31, 2026" — and no Phase V schedule has been posted for Met-Ed, Penelec, Penn Power, or West Penn Power customers. Do not budget around a FirstEnergy rebate until a new schedule appears.
UGI Electric (northeastern PA)
UGI Electric (Luzerne and Wyoming counties) is advertising a live "Save Smart 2026" equipment rebate schedule with an open online application, promoted as up to $1,500 in rebates.
| Equipment | Rebate |
|---|---|
| Air-source heat pump (SEER 15.2+) | $500 |
| Mini-split heat pump, per ton (SEER2 ≥15.2 / ≥18.1 / ≥20) | $175 / $250 / $300 per ton, up to $1,500 |
| Central air conditioner (SEER 15.2+) | $300 |
| Heat pump water heater | $500 |
EAP HVAC rebate (Philadelphia area) — Fall 2026 program published
The Electrical Association of Philadelphia runs a separate, seasonal instant-rebate program through participating contractors. It is a trade-association program, not an Act 129 utility rebate — PECO's involvement is limited to publicizing it — and per EAP it can be combined with PECO rebates (but not with manufacturer rebates). Fall 2026 details are now published on EAP's program page (posted as of July 8, 2026). Here are the heat pump rebates, paid as an instant discount on the participating contractor's invoice:
| System | Minimum efficiency | Rebate |
|---|---|---|
| Heat pump — Tier 1 | SEER2 15.2+ / EER2 11.0 / HSPF2 7.8 | $500 |
| Heat pump — Tier 2 | SEER2 16+ / EER2 11.0 / HSPF2 7.8 | $1,000 |
| Heat pump — Tier 3 | SEER2 18+ / EER2 11.0 / HSPF2 7.8 | $1,400 |
| Mini-split heat pump | SEER2 17 / EER2 12 / HSPF2 8.5 | $250 single zone, or $200 per zone multizone |
| + Dual-fuel (hybrid) adder | Heat pump must meet a tier above; outdoor unit, indoor coil, and furnace all installed | +$250 (not a separate rebate) |
The advertised $250–$1,650 range is the single-zone mini-split at the bottom and Tier 3 plus the dual-fuel adder at the top. Fall program timeline: contracts may not be signed before August 3, 2026, must be signed by November 13, 2026, systems installed by November 27, 2026, and claim forms received by EAP by December 4, 2026. Rebates flow only through participating contractors installing participating brands — EAP lists the Fall 2026 brand roster on its program page (including Trane, Ruud, American Standard, Amana/Goodman, Bosch, Lennox, York, Bryant and Carrier with tier exclusions, and for mini-splits Mitsubishi and Daikin).
Note about gas utilities: Philadelphia Gas Works (PGW) and Columbia Gas of PA do not offer electric heat pump rebates. PGW's EnergySense program covers gas furnaces and boilers only.
Pennsylvania is the only large Northeast state where your utility matters more than your income
In New York, Massachusetts, and Connecticut, the biggest rebates scale by income level. In Pennsylvania, your zip code (utility territory) is still the primary variable: under the published Phase V schedules, a UGI customer gets a $500 heat pump rebate, a PECO customer up to $300 (plus up to $1,650 more from EAP's fall program in the Philadelphia area), and a Duquesne Light customer currently $0. But income matters more than it did under Phase IV: PPL pays $350–$475 instead of $225–$325 for households at or below 250% of the federal poverty level.
Local programs and state financing
Philadelphia Energy Authority — Built to Last
PEA's Built to Last program provides whole-home repairs and energy upgrades — including heat pumps, HPWH, and induction stoves — at 100% cost coverage for low-income homeowners. PEA has installed heat pump systems in approximately 40 homes through this program and earned EPA's ENERGY STAR Home Upgrade Service Provider designation.
PHFA HEELP Loan
$1,000–$10,000 at 1% fixed APR for 10 years (~$88/month on a $10,000 loan). No prepayment penalties. Income limit: up to 150% AMI. Covers heat pumps, insulation, air sealing, windows. Requires a PHFA-approved contractor.
KEEP Home Energy Loan
$2,500–$25,000 at below-market rates for 3–10 years. Covers heat pumps, HPWH, insulation, EV chargers. Administered by the National Energy Improvement Fund under the PA Energy Development Authority.
How programs stack in Pennsylvania
Act 129 utility rebates, EAP's Philadelphia-area program, Penn Energy Savers, and loan programs draw on different funding sources and can generally be combined. Today the utility rebates at PECO, PPL, and UGI are claimable; EAP's fall contract window is August 3–November 13; Penn Energy Savers has not launched. The scenarios below use a typical 3-ton ducted heat pump costing $10,000–$14,000:
Above 150% AMI — PECO territory ($12,000 installed, illustrative)
- PECO Phase V rebate: up to $300 — claimable now
- EAP Fall 2026 program (contracts Aug 3–Nov 13): $250–$1,650
- Penn Energy Savers: not eligible
- HOMES (when launched, 20%+ savings): $2,000
Claimable today: up to $300
With EAP's fall window and a HOMES launch: potentially ~$2,550–$3,950
81–150% AMI — PECO territory ($12,000 installed, illustrative)
- PECO Phase V rebate: up to $300 — claimable now
- EAP Fall 2026 program (contracts Aug 3–Nov 13): $250–$1,650
- HEAR (when launched, 50% of cost): up to $6,000
Claimable today: up to $300 (plus HEELP/KEEP financing)
With EAP's fall window and a HEAR launch: potentially ~$6,550–$7,950
Below 80% AMI — PECO territory ($12,000 installed, illustrative)
- PECO Phase V rebate: up to $300 — claimable now
- EAP Fall 2026 program (contracts Aug 3–Nov 13): $250–$1,650
- HEAR (when launched, 100% of cost): up to $8,000
- PEA Built to Last (Philadelphia): potential full coverage
Claimable today: up to $300 — and Built to Last (Philadelphia) and Weatherization Assistance may cover work now
With EAP's fall window and a HEAR launch: potentially ~$8,550–$9,950 (capped at project cost)
What you'll actually pay
On a $10,000–$14,000 ducted heat pump, a PPL customer today gets $225–$475 back, a PECO customer up to $300, and a UGI customer $500 — helpful, but most of the cost stays out of pocket, offset by financing (HEELP at 1% APR, KEEP) and, for income-qualified households, Weatherization Assistance or Philadelphia's Built to Last. If you are income-eligible for Penn Energy Savers (up to $8,000 for a heat pump) and your current system still works, waiting for its launch remains the biggest lever — it cannot reimburse equipment purchased before it opens.
Timing: why waiting may pay
Penn Energy Savers cannot fund work completed before application approval, and EAP's fall rebate requires a contract signed inside its program window (August 3–November 13, with installation by November 27) — so sequencing matters. Utility rebates at PECO, PPL, and UGI are claimable now (mind the 90–180 day application deadlines). If you are income-qualified and can wait, Penn Energy Savers is the larger prize; if you are in PECO territory and can schedule installation for the fall window, the EAP rebate adds up to $1,650.
Pennsylvania has no state tax credit for heat pumps. The stacking scenarios above do not include potential manufacturer rebates, which vary by brand and change frequently.
Pennsylvania Weatherization Assistance Program
Pennsylvania's WAP, administered by the Department of Community and Economic Development through local Community Action Agencies, provides free weatherization services to households at or below 200% of the federal poverty level. Services are determined by an energy audit and can include heating system replacement if identified as cost-effective.
LIHEAP crisis grants also cover emergency heating system repair or replacement for income-eligible households. Contact your local Community Action Agency or call 2-1-1 to apply. Priority is given to elderly, disabled, and families with children.
Pennsylvania climate and heat pump performance
Pennsylvania spans three IECC climate zones (4A, 5A, and 6A). Outside of the Philadelphia metro area, cold-climate-rated equipment is recommended for reliable performance.
| City | Design temp (99%) | Climate zone |
|---|---|---|
| Philadelphia | 14°F | 4A |
| Harrisburg | 11°F | 5A |
| Allentown | 9°F | 5A |
| Pittsburgh | 5°F | 5A |
| Scranton | 5°F | 5A |
| Erie | 9°F | 5A |
Hybrid/dual-fuel systems (heat pump + gas furnace backup) are common in PA and make particular sense in Pittsburgh and Scranton where design temps hit 5°F. EAP's Fall 2026 program keeps the $250 dual-fuel adder rewarding this approach — the heat pump must meet one of the rebate tiers, and the outdoor unit, indoor coil, and furnace must all be installed.
Heating fuel context: About 52% of PA homes heat with natural gas, 27% with electricity, 12% with heating oil, and 5% with propane. Heating oil and propane households — concentrated in rural areas and the northern tier — stand to gain the most from heat pump conversion due to high fuel costs.
Pennsylvania homeowners considering a heat pump paired with battery storage can review our guide to home batteries for current economics and incentive details.
✓ Best candidates for a heat pump in Pennsylvania
Heating oil or propane users in rural PA and the northern tier — fuel cost savings alone can justify the switch, with no rebate required. Income-qualified households below 80% AMI, who will benefit most when Penn Energy Savers launches and who may qualify for Weatherization Assistance or Built to Last today. Homeowners with aging electric resistance heat — heat pumps cut electricity use by 30–50%. Income-qualified homeowners who can wait: Penn Energy Savers is expected to be the largest rebate and cannot reimburse equipment bought before it launches.
How to apply for Pennsylvania incentives
PECO, PPL, and UGI Electric are paying heat pump rebates right now; Duquesne Light and FirstEnergy are not. Here is the path:
Identify your electric utility
Check your electric bill — PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, West Penn Power, or UGI Electric. Your utility determines your rebate: PECO, PPL, and UGI have published Phase V amounts; Duquesne Light and FirstEnergy have not.
Check rebate eligibility and get quotes
Confirm your equipment meets your utility's published thresholds before you sign anything — the current PA schedules require ENERGY STAR certification and minimum SEER2/HSPF2 ratings, with higher-efficiency equipment earning larger rebates. In PECO territory, the separate EAP rebate requires a participating EAP contractor installing a participating brand, and a contract signed inside the program window (August 3–November 13 for Fall 2026).
Know the application deadline before you install
Deadlines are live again: PECO requires applications within 90 days of purchase or installation (for equipment bought on or after June 1, 2026), and PPL requires postmark within 180 days of installation. Duquesne Light and FirstEnergy have no open rebate to apply for — if you are in those territories, ask your utility before you install.
Apply for financing if needed
HEELP (1% APR) and KEEP (below-market) loans are available in every territory and stack with utility rebates. Apply separately — loan programs and utility rebates use different funding sources.
What to watch for in Pennsylvania
IRA funding runway
IRA funding for HEAR and HOMES remains authorized through September 30, 2031 or until depleted. Pennsylvania's $258.9 million allocation is secure. The OBBBA did not terminate these programs.
Penn Energy Savers launch
The biggest variable for PA heat pump economics. Funding is allocated and administrators are hired, but DOE issued new program guidance on June 1, 2026 and DEP is revising the program to comply. Monitor pennenergysavers.com; DEP takes resident questions at RA-EPHomeEngRebates@pa.gov.
Duquesne Light and FirstEnergy Phase V amounts (the near-term ones to watch)
PECO, PPL, and UGI published Phase V schedules in June 2026. Duquesne Light (Docket M-2025-3057325) says its program is being refreshed, and FirstEnergy's portal still shows only Phase IV closeout text. Phase V runs through May 2031, so both will return — the question is when and at what level.
Governor Shapiro's Lightning Plan
Includes Act 129 reform legislation that could significantly expand rebate levels and modernize Pennsylvania's energy efficiency standards.
Frequently asked questions
What heat pump rebates are available in Pennsylvania in 2026?
It depends on your utility. Act 129 Phase V began June 1, 2026, and three utilities have published new, claimable rebate schedules: PECO (up to $300 for an air-source heat pump, up to $300 for a ductless mini-split), PPL ($225–$325 for heat pumps, or $350–$475 for households at or below 250% of the federal poverty level), and UGI Electric ($500 air-source heat pump; mini-splits $175–$300 per ton, up to $1,500). In the Philadelphia area, the EAP Fall 2026 instant rebate adds $250–$1,650 through participating contractors (contracts August 3–November 13, 2026) and can be combined with PECO rebates. Duquesne Light’s program is “currently being refreshed” with no published amounts, and FirstEnergy’s portal still shows only Phase IV closeout information. The Penn Energy Savers (HEAR/HOMES) program has still not launched — DOE issued new program guidance on June 1, 2026, and DEP is revising the program to comply. Federal 25C/25D credits ended December 31, 2025. Also available: the PHFA HEELP loan (1% APR), the KEEP loan, PA Weatherization Assistance, LIHEAP crisis grants, and — in Philadelphia — the Energy Authority’s Built to Last program.
Can I stack utility rebates with Penn Energy Savers in Pennsylvania?
Yes in principle — Act 129 utility rebates and Penn Energy Savers draw on different funding sources. Today only the utility side is claimable: PECO, PPL, and UGI have published Phase V rebates, while Penn Energy Savers has not launched. HEELP and KEEP loans are available now and stack with utility rebates. Total incentives generally cannot exceed total project cost.
What is the Penn Energy Savers program?
Penn Energy Savers is Pennsylvania’s IRA-funded rebate program (HEAR/HOMES), allocated $258.9 million ($129.2M HEAR, $130M HOMES). When launched, HEAR will cover up to 100% of costs for households below 80% AMI (heat pump cap $8,000) and 50% of costs for households at 81–150% AMI. DEP estimates it will serve 12,000–16,000 residents. On June 1, 2026, DOE released new program guidance; DEP’s Energy Programs Office is revising the program design to comply before launching. There is no confirmed launch date.
When do Pennsylvania Act 129 utility rebates expire?
Act 129 Phase V runs June 1, 2026 through May 31, 2031, so utility rebate funding is in place for five years — but each utility publishes its own schedule and can modify amounts or exhaust annual funding. As of July 2026, PECO, PPL, and UGI have published Phase V amounts; Duquesne Light’s program is being refreshed and FirstEnergy has not posted a new schedule. PECO requires applications within 90 days of purchase or installation for equipment bought on or after June 1, 2026, and PPL requires postmark within 180 days of installation. Confirm the deadline with your utility before you install.
Do I need a cold-climate heat pump in Pennsylvania?
For most of Pennsylvania, yes. Philadelphia (14°F design temp) can work with standard equipment, but Pittsburgh, Scranton, and Erie (5–9°F design temps) need cold-climate rated heat pumps. Look for ENERGY STAR Cold Climate certification — these maintain at least 70% capacity at 5°F. Hybrid/dual-fuel systems are common in PA and make particular sense in colder regions.
Who administers Pennsylvania’s heat pump programs?
Utility rebates are administered by each electric utility under PUC-regulated Act 129. Penn Energy Savers (HEAR/HOMES) is administered by the PA Department of Environmental Protection. The HEELP loan is administered by the PA Housing Finance Agency. There is no single statewide rebate program — your utility territory is the primary variable.
Sources
- PA DEP — Inflation Reduction Act / Penn Energy Savers
- Penn Energy Savers (consumer site)
- PHFA HEELP Loan Program
- EAP Residential HVAC Rebate Program (2026, incl. Fall program)
- PECO Heating & Cooling Rebates
- PPL Electric Savings Portal
- PPL Rebates Overview PDF (published June 1, 2026)
- Duquesne Light — Energy Rebates hub (program being refreshed)
- FirstEnergy PA Rebates
- UGI Electric Equipment Rebates
- Philadelphia Energy Authority
- PA PUC — Act 129 Phase V Approval
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Pennsylvania homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Pennsylvania's incentives vary entirely by utility territory — amounts shown are based on each utility's published schedules as of July 10, 2026 (Act 129 Phase V began June 1, 2026; Duquesne Light and FirstEnergy had not published Phase V amounts as of that date). Penn Energy Savers has not launched and expected amounts may change when finalized. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your utility, the PA DEP, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)