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PA has 7 utility-specific rebate programs under Act 129 — no single statewide incentive. PECO customers in the Philadelphia metro can stack EAP bonuses for over $1,700 in combined incentives. The federal 25C credit is gone. Here is every dollar available in 2026.
$1,700+
Best PECO Stack
Base + EAP Tier 3
$450
PPL Electric
Central ASHP max
$500
FirstEnergy (4 EDCs)
Per ASHP
$250
Duquesne Light
Per ASHP
Federal 25C Tax Credit: EXPIRED (Dec 31, 2025). The $2,000 heat pump tax credit is no longer available. PA utility rebates under Act 129 are your remaining incentive for 2026 heat pump purchases.
Pennsylvania's Act 129 requires each electric distribution company (EDC) to fund energy efficiency programs. Heat pump rebates vary significantly by utility.
| Utility (EDC) | ASHP Rebate | Mini-Split | HPWH | Customers | Service Area |
|---|---|---|---|---|---|
| PECO | $300 | $300 | $300 | ~1.6M | Southeastern Pennsylvania — Philadelphia, Delaware, Chester, Montgomery, and Bucks counties |
| PPL Electric | $450 | $400 | $400 | ~1.4M | Central and northeastern Pennsylvania — Lehigh Valley, Lancaster, Harrisburg, Scranton/Wilkes-Barre, State College. 29 counties. |
| Duquesne Light | $200 | $200 | $300 | ~600K | Pittsburgh region — Allegheny and Beaver counties. Program name: Watt Choices. |
| Met-Ed | $500 | $500 | $500 | ~560K | Southeastern and south-central Pennsylvania — Reading, York, Lancaster areas |
| Penelec | $500 | $500 | $500 | ~590K | Northern and central Pennsylvania — Erie, State College, and surrounding areas |
| Penn Power | $500 | $500 | $500 | ~160K | Western Pennsylvania — New Castle area and surrounding communities |
| West Penn Power | $500 | $500 | $500 | ~720K | Western and central Pennsylvania — Greensburg, Johnstown, and surrounding areas |
Source: PA PUC Act 129 Phase IV filings, individual utility rebate portals. Verified February 2026.
PECO customers in southeastern Pennsylvania (Philadelphia, Delaware, Chester, Montgomery, and Bucks counties) can stack their base Act 129 rebate with bonuses from the Electrical Association of Philadelphia (EAP). This creates the highest incentive available in Pennsylvania.
$500
EAP bonus
Min SEER2: 15.2
Min HSPF2: 7.8
Dual-fuel adder: +$250
$1,000
EAP bonus
Min SEER2: 16
Min HSPF2: 7.8
Dual-fuel adder: +$250
$1,400
EAP bonus
Min SEER2: 18
Min HSPF2: 7.8
Dual-fuel adder: +$250
Rebate amounts vary by equipment and income. See what you qualify for.
Check My EligibilityThe PA PUC approved Phase V on 2025-06-18. Phase V is expected to include higher heat pump incentives as Pennsylvania accelerates electrification goals. However, specific rebate amounts have not been published as of February 2026.
Current Phase IV ends: May 31, 2026 | Phase V begins: June 1, 2026
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Greater Philadelphia / Southeast PA
Central ducted system replacing furnace + AC
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PECO EAP Program: PECO offers additional Energy Assessment Program (EAP) rebates on top of standard ASHP rebates. Tier 1: $500, Tier 2: $1,000, Tier 3: $1,400 based on energy savings achieved. Plus $250 hybrid heat pump adder.
Estimates based on 2026 PA utility rebate programs. Actual rebate and installation cost determined by your contractor and utility. Federal 25C tax credit expired Dec 31, 2025 -- not included.
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PA heat pump rebates come from your electric utility under Act 129. PECO offers $200-$300 base plus up to $1,400 in EAP (Electrical Association of Philadelphia) tier bonuses. PPL Electric offers $350-$450 tiered by efficiency. The four FirstEnergy subsidiaries (Met-Ed, Penelec, Penn Power, West Penn Power) each offer up to $500. Duquesne Light offers $200 for central ASHPs. The federal 25C tax credit ($2,000) expired December 31, 2025.
No. The Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025, under the OBBBA signed July 4, 2025. There is $0 in federal tax credits available for residential heat pump purchases in 2026. PA utility rebates under Act 129 are your primary incentive.
The Electrical Association of Philadelphia (EAP) offers tiered bonuses stackable with PECO base rebates. Tier 1 ($500) requires SEER2 15.2+, Tier 2 ($1,000) requires SEER2 16.0+, and Tier 3 ($1,400) requires SEER2 18.0+. All tiers require HSPF2 7.8+. There is also a $250 dual-fuel/hybrid adder. Combined PECO + EAP can exceed $1,700.
In Pennsylvania, a ducted central heat pump typically costs $12,000-$22,000 installed, with the state average around $17,000. A single-zone ductless mini-split runs $3,000-$5,000. Multi-zone ductless systems cost $10,000-$18,000. Hybrid (heat pump + gas backup) systems range from $14,000-$24,000. Philadelphia tends to have the highest labor costs in the state.
Act 129 Phase V was approved by the PA PUC on June 18, 2025, and runs from June 1, 2026, through May 31, 2031. It is expected to include higher heat pump incentives reflecting the state's electrification priorities. However, specific Phase V rebate amounts have not been published as of February 2026. Phase IV rebates remain active through May 31, 2026.
Pennsylvania requires HVAC contractors to be registered under the Home Improvement Contractor Registration Act (HICRA). Additionally, technicians must hold EPA Section 608 certification for refrigerant handling. Always verify your installer's HICRA registration number before signing a contract. Some municipalities also require local HVAC permits.
Get matched with HICRA-registered, Act 129 program-approved installers in your PA utility territory. Free, no-obligation quotes.