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PECO Energy serves 1.6 million customers in the Philadelphia metro area and offers Pennsylvania's best heat pump incentive package when combined with EAP (Electrical Association of Philadelphia) bonuses. Total stacked incentives can exceed $1,950.
$300
PECO Base ASHP
Act 129
$1,400
EAP Tier 3 Max
SEER2 18.0+
$250
Hybrid Adder
Dual-fuel bonus
$1,950+
Max Combined
Highest in PA
PECO Energy is an Exelon company and Pennsylvania's largest electric distribution company. Its service territory covers the five counties of southeastern Pennsylvania surrounding Philadelphia.
Philadelphia County
City of Philadelphia — urban rowhomes, high density
Delaware County
Media, Drexel Hill — suburban
Chester County
West Chester, Downingtown — suburban/rural
Montgomery County
King of Prussia, Norristown — suburban
Bucks County
Doylestown, Newtown — suburban/rural
The Electrical Association of Philadelphia (EAP) is a unique advantage for PECO customers. These tiered bonuses are applied on top of the standard PECO Act 129 rebate, creating the highest heat pump incentive available in Pennsylvania.
$500
EAP bonus rebate
$1,000
EAP bonus rebate
$1,400
EAP bonus rebate
Use HICRA-registered contractor. Install ENERGY STAR certified HP meeting EAP efficiency minimums.
Submit online at peco.com/smart-energy with proof of purchase and installation invoice.
Separate application through EAP. Provide equipment specs showing SEER2/HSPF2 ratings.
PECO and EAP rebates processed independently. Allow 6-8 weeks for each.
PECO's residential rate of approximately $0.21/kWh is on the higher end for PA. However, SE PA is in climate Zone 4A — the mildest zone in Pennsylvania — which means heat pumps perform more efficiently here than in colder parts of the state.
Total rate: ~$0.21/kWh
PTC (generation): ~$0.11/kWh
Distribution: ~$0.10/kWh
Up ~20% YoY from PJM capacity
Mildest climate zone in PA
Design temp: 8-13°F
Higher seasonal COP (3.0-3.5)
HP performs well as primary heat
PA is deregulated — shop for supply
PA Power Switch (papowerswitch.com)
Lock in a fixed rate to reduce HP operating cost
PECO handles distribution regardless
When launched, HEAR rebates will stack with PECO + EAP. A low-income PECO customer could see: $300 (PECO) + $1,400 (EAP Tier 3) + $250 (hybrid) + $8,000 (HEAR) = $9,950. However, Penn Energy Savers is NOT yet active. Do not make purchasing decisions based on HEAR.
Status: PENDING — DOE approval awaited. Program administrators hired (HER: Resource Innovations Aug 2025, HEAR: EGIS BLN Dec 2025). Launch date TBD.
Select PECO as your utility and choose your EAP tier to see your combined incentive amount.
Greater Philadelphia / Southeast PA
Central ducted system replacing furnace + AC
3 ton(s) (most PA homes: 2-4 tons)
Based on your energy efficiency savings level
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.
PECO offers $200-$300 for ENERGY STAR certified air source heat pumps (central and mini-split) and approximately $300 for heat pump water heaters through its Act 129 energy efficiency program. This is the base rebate available to all PECO electric customers in southeastern Pennsylvania.
The Electrical Association of Philadelphia (EAP) offers tiered bonuses on top of the PECO base rebate. 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 minimum. Apply through the EAP separately from the PECO rebate application.
The maximum combined incentive for PECO customers is over $1,950: PECO base ($300) + EAP Tier 3 ($1,400) + dual-fuel/hybrid adder ($250). This makes PECO territory the most generous for heat pump incentives in all of Pennsylvania. Equipment must meet SEER2 18.0+ and HSPF2 7.8+ for the Tier 3 bonus.
PECO Energy (an Exelon company) serves approximately 1.6 million electric customers in southeastern Pennsylvania. The service territory covers Philadelphia, Delaware, Chester, Montgomery, and Bucks counties — essentially the greater Philadelphia metropolitan area. PECO is PA's largest EDC.
PECO's residential electric rate is approximately $0.21/kWh as of early 2026, with a price-to-compare (PTC) rate around $0.11/kWh for the generation portion. PA is a deregulated market, so PECO customers can shop for competitive supply rates while PECO handles distribution. The rate has increased approximately 20% year-over-year due to PJM capacity cost surges.
Yes, when the Penn Energy Savers (HEAR) program eventually launches, HEAR rebates will be stackable with PECO Act 129 rebates and EAP bonuses. A low-income PECO customer could theoretically combine PECO ($300) + EAP Tier 3 ($1,400) + hybrid ($250) + HEAR ($8,000) for nearly $10,000 in total incentives. However, HEAR is NOT yet available — do not make purchasing decisions based on HEAR funding.
Get matched with HICRA-registered installers who are approved for both the PECO Act 129 program and EAP bonus applications in the Philadelphia metro area.
Get Free PECO Area Quotes