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Pennsylvania has no single statewide heat pump program — rebates come from 7 separate electric distribution companies under Act 129. PECO customers in Philadelphia can stack up to $1,700+ with EAP bonuses. Federal 25C tax credit expired December 31, 2025. HEAR ($129M via Penn Energy Savers) is pending DOE approval.
Act 129
7 EDC Utilities
$1,700+
PECO + EAP Stack
$129M
HEAR Pending
$0.20/kWh
Avg Electric Rate
Federal 25C tax credit ($2,000) expired Dec 31, 2025. PA utility rebates under Act 129 remain your primary incentive. HEAR rebates (up to $8,000 for low-income) are pending through Penn Energy Savers — not yet available.
Everything you need to know about heat pumps in Pennsylvania — from utility-specific rebates and installation costs to honest comparisons with natural gas. PA spans three climate zones (4A, 5A, 6A), making equipment selection critical.
All 7 utility rebates: PECO up to $1,700+ with EAP, PPL $450, FirstEnergy $500. HEAR $129M pending.
Metro pricing: Philadelphia $18K, Pittsburgh $17.2K, Allentown $16.5K. Mini-split to hybrid.
Honest comparison at $1.60/therm vs $0.20/kWh. When gas wins, when HP wins, and dual-fuel.
HICRA registration, Manual J load calc, EPA 608 cert. Questions to ask, red flags to avoid.
SE PA / Philadelphia: $300 ASHP + EAP Tier 3 $1,400 + $250 hybrid = $1,950+. 1.6M customers.
Central & eastern PA: up to $450 ASHP + $400 mini-split + $400 HPWH. 1.4M customers.
Deregulated market explainer. 7 EDC rate comparison. PJM capacity surge impact. How to shop for HP rates.
Pennsylvania is a gas-dominant state with a deregulated electric market. Understanding the utility landscape and incentive structure is essential before investing.
PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power each run separate rebate programs under Act 129. Rebates range from $200 to $500 per system.
Philadelphia-area PECO customers can stack utility rebates ($300) with EAP tier bonuses (up to $1,400) plus a $250 dual-fuel adder for combined savings exceeding $1,700.
Phase IV ends May 31, 2026. Phase V (June 2026 - May 2031) was approved by the PUC with expected higher heat pump incentives. Specific amounts not yet published.
PA spans Zone 4A (SE Philadelphia, mildest), Zone 5A (most of state, cold winters), and Zone 6A (extreme north). Cold-climate models are recommended for Zones 5A and 6A.
Natural gas at $1.60/therm makes the gas-to-HP savings case narrow. Biggest savings come from replacing oil ($3.40/gal) or propane ($2.85/gal). Dual-fuel is popular in Zone 5A.
Pennsylvania requires heat pump installers to be registered under the Home Improvement Contractor Registration Act (HICRA). Always verify registration before signing a contract.
Each of Pennsylvania's 7 electric distribution companies offers different heat pump rebate amounts under Act 129 Phase IV. Here's a snapshot.
| Utility | ASHP Rebate | HPWH Rebate | Service Area | Rate |
|---|---|---|---|---|
| PECO | $200-$300 | $300 | SE PA / Philadelphia | $0.21/kWh |
| PPL Electric | $350-$450 | $400 | Central / Eastern PA | $0.21/kWh |
| Duquesne Light | $200 | $300 | Pittsburgh | $0.20/kWh |
| Met-Ed | Up to $500 | $500 | Reading / York | $0.19/kWh |
| Penelec | Up to $500 | $500 | Erie / State College | $0.18/kWh |
| Penn Power | Up to $500 | $500 | New Castle area | $0.19/kWh |
| West Penn | Up to $500 | $500 | Greensburg / Johnstown | $0.17/kWh |
Note: PECO customers can stack EAP bonuses (up to $1,400) on top of the base rebate. See the PECO rebates guide for details.
Solar panel guides for Pennsylvania — costs, SREC program, net metering, utility rate comparisons, financing, and community solar. Updated for the post-ITC landscape.
Pennsylvania received approximately $129 million in IRA HEAR funding. The program, branded as Penn Energy Savers, hired administrators (HER: Resource Innovations in Aug 2025, HEAR: EGIS BLN in Dec 2025) but has not yet launched. When active, it could provide up to $8,000 for income-qualified households (below 80% AMI) and up to $8,000 at 50% cost share for moderate-income households (80-150% AMI).
Use our PA rebate calculator to estimate your incentives, or get a personalized quote from vetted, HICRA-registered installers in your area.