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Complete 2026 Guide for PA Homeowners
Pennsylvania's Act 129 requires PECO, PPL Electric, and Duquesne Light to offer energy efficiency rebates funded through your electric bill. This guide covers every program, compares all three utilities, and shows you how to maximize your rebates in a deregulated market.
Updated February 2026
Act 129 is Pennsylvania's energy efficiency and conservation law, signed in 2008. It requires the state's three major electric distribution companies (EDCs) to offer energy efficiency programs to their residential and commercial customers. Unlike states with a single statewide program (like Mass Save in Massachusetts or Energize CT in Connecticut), PA's programs are utility-administered -- each EDC runs its own branded program with its own rebate amounts and processes.
The three programs are PECO Smart Ideas (southeastern PA / Philadelphia), PPL E-Power (eastern and central PA), and Duquesne Light Watt Choices (greater Pittsburgh). All are funded through a ratepayer surcharge on electric bills and overseen by the PA Public Utility Commission (PUC).
Pennsylvania is a deregulated electricity market. This means you can choose your electricity supplier (the company that generates your power), but your EDC (PECO, PPL, or Duquesne Light) still delivers the power and runs Act 129 rebate programs. Choosing a competitive supplier does not affect your eligibility for rebates.
Establish energy efficiency programs at all major EDCs
Expand programs, add demand response
Increased savings targets, added low-income carve-out
Electrification incentives, heat pump focus, EV readiness
Current phase — enhanced heat pump and HPWH rebates, income-eligible expansion
Each PA utility runs its own Act 129 branded program with different rebate amounts. Here is a side-by-side comparison.
| Measure | PECO Smart Ideas | PPL E-Power | Duquesne Watt Choices |
|---|---|---|---|
| Ducted Heat Pump | $500 | $400 | $350 |
| Ductless Mini-Split | $300 | $250 | $200 |
| HPWH (Heat Pump Water Heater) | $200 | $150 | $150 |
| Smart Thermostat | $50 | -- | $25 |
| EAP Income Stacking | Up to +$1,400 | Not available | Not available |
| Electric Rate | ~$0.16/kWh | ~$0.14/kWh | ~$0.15/kWh |
All rebates require ENERGY STAR certified equipment. Heat pumps: min 15 SEER2 / 8.8 HSPF2. HPWH: min UEF 2.0. Submit rebate application within 90 days of installation.
PA's three major EDCs serve different regions. Your utility is determined by your physical address, not your electricity supplier.
Southeastern PA — Philadelphia, Bucks, Chester, Delaware, Montgomery, York counties
~1.6 million customers (~38% of PA)
EAP stacking available -- up to +$1,400
Eastern and central PA — 29 counties including Lehigh Valley, Harrisburg, Lancaster, Scranton
~1.4 million customers (~33% of PA)
Greater Pittsburgh — Allegheny and Beaver counties
~600,000 customers (~14% of PA)
Pennsylvania deregulated its electricity market in 1996. This means there are two separate components to your electric service: generation (who produces the electricity) and distribution (who delivers it to your home). You can shop for a competitive electricity supplier, but your distribution company (PECO, PPL, or Duquesne Light) remains the same based on your address.
Act 129 rebates are administered by your distribution company, not your supplier. This is a critical distinction: even if you buy electricity from a third-party supplier, you still receive your Act 129 rebates from PECO, PPL, or Duquesne Light. The ratepayer surcharge that funds these programs appears on your distribution charges, which you pay regardless of your supplier choice.
Choose ENERGY STAR certified equipment and hire any licensed PA HVAC contractor. No utility-approved contractor list required.
Apply online or by phone to your EDC's program within 90 days of installation. Include proof of purchase, model/serial numbers, and contractor invoice.
Rebate processed as a check or bill credit within 6-10 weeks. PECO income-eligible customers receive EAP bonus with the standard rebate.
Key point: Act 129 rebates are direct rebates funded by PA ratepayers, not federal tax credits. They are unaffected by the federal expiration and remain fully available through Phase V (May 31, 2026).
Click through to the detailed rebate guide for your utility, or browse the full rebate menus below.
PECO -- PECO Smart Ideas is the energy efficiency program for PECO customers in southeastern Pennsylvania.
ENERGY STAR certified, minimum 15 SEER2 / 8.8 HSPF2. Replaces electric resistance, oil, or propane heating.
ENERGY STAR certified, minimum 15 SEER2. Per indoor unit, max 4 units per household.
ENERGY STAR certified, minimum UEF 2.0. Replaces standard electric resistance tank.
ENERGY STAR certified models (Ecobee, Honeywell, Google Nest, etc.). One per household.
Discounted ENERGY STAR LEDs at participating retailers. No application needed.
Free pickup and recycling of old, working refrigerator or freezer. $50 bill credit.
PPL Electric -- PPL E-Power is the energy efficiency program for PPL Electric Utilities customers across 29 counties in eastern and central Pennsylvania.
ENERGY STAR certified, minimum 15 SEER2 / 8.8 HSPF2. Must replace existing heating system.
ENERGY STAR certified, minimum 15 SEER2. Per indoor unit.
ENERGY STAR certified, minimum UEF 2.0. Replaces electric resistance water heater.
Discounted ENERGY STAR LEDs at participating retailers throughout PPL territory.
Free pickup and recycling of old, working refrigerator or freezer. $35 bill credit.
Duquesne Light -- Duquesne Light Watt Choices is the energy efficiency program for customers in the greater Pittsburgh area (Allegheny and Beaver counties).
ENERGY STAR certified, minimum 15 SEER2 / 8.8 HSPF2. Replaces existing heating system.
ENERGY STAR certified, minimum 15 SEER2. Per indoor unit.
ENERGY STAR certified, minimum UEF 2.0. Replaces electric resistance water heater.
ENERGY STAR certified smart thermostat. One per household.
Discounted ENERGY STAR LEDs at participating retailers in Allegheny and Beaver counties.
Act 129 is Pennsylvania's energy efficiency and conservation law, signed in 2008. It requires the state's three major electric distribution companies (PECO, PPL Electric, and Duquesne Light) to offer energy efficiency programs to their customers. These programs are funded through a ratepayer surcharge on electric bills. The current Phase V runs through May 31, 2026.
PECO offers the highest heat pump rebates at $500 for ducted systems and $300 for ductless mini-splits. PPL Electric offers $400/$250 respectively, and Duquesne Light offers $350/$200. Additionally, only PECO offers EAP income-eligible stacking that can add up to $1,400 on top of standard rebates.
Yes. Pennsylvania is a deregulated electricity market, similar to Texas. You can choose your electricity supplier (the company that generates your power), but your electric distribution company (PECO, PPL, or Duquesne Light) still delivers the power and administers Act 129 rebate programs. Choosing a different supplier does not affect your eligibility for Act 129 rebates.
No. The federal Section 25C energy efficiency tax credit expired December 31, 2025 and provides $0 in 2026. The Section 25D residential solar ITC also expired. Your PA utility Act 129 rebate is the primary incentive available.
PECO customers can stack standard Smart Ideas rebates with EAP (Energy Assistance Program) income-eligible bonuses for up to $1,400 additional. PPL and Duquesne Light do not offer EAP stacking. All PA customers can use LIHEAP and WAP alongside Act 129 rebates.
No. PA Act 129 programs do not require utility-specific contractors. Any licensed PA HVAC contractor can install qualifying equipment. The key requirement is that equipment must be ENERGY STAR certified and meet minimum efficiency thresholds (15 SEER2 / 8.8 HSPF2 for heat pumps, UEF 2.0 for HPWH). Submit your rebate application within 90 days of installation.
The PA Public Utility Commission (PUC) will evaluate program results and determine whether to authorize Phase VI. Based on past practice (five phases since 2009), a new phase is expected. However, rebate amounts, eligible measures, and program structure may change. If you are planning an upgrade, completing it before May 31, 2026 ensures you receive current rebate amounts.
Check your electric bill -- your utility is listed on the bill header. PECO serves southeastern PA (Philadelphia and surrounding counties, ~38% of PA). PPL Electric serves 29 counties in eastern and central PA including Lehigh Valley, Harrisburg, Lancaster, and Scranton (~33% of PA). Duquesne Light serves the greater Pittsburgh area -- Allegheny and Beaver counties (~14% of PA).
NuWatt Energy provides this guide as an educational resource to help Pennsylvania homeowners understand and navigate Act 129 energy efficiency programs. All program details, rebate amounts, and eligibility requirements are sourced from PECO, PPL Electric, Duquesne Light, and the PA PUC. We recommend verifying current availability by contacting your utility directly.
Dive deeper into specific PA utility programs and energy topics.
PECO Smart Ideas HP rebates + EAP stacking up to $1,950+.
PPL E-Power rebates for eastern and central PA homeowners.
Watt Choices rebates for greater Pittsburgh area.
Earn $200-$1,400 extra with income-eligible EAP stacking.
LIHEAP, WAP, and EAP for low-income PA households.
Total cost breakdown by system type after utility rebates.
Contact your utility directly to learn about available rebates, or reach out to NuWatt Energy for help navigating the application process.