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PPL Electric serves 1.4 million customers across 29 counties in central and eastern Pennsylvania. Their Act 129 program offers tiered rebates up to $450 for central ASHPs, with Phase V expected to bring higher incentives starting June 2026.
$350-$450
Central ASHP
Tiered by efficiency
~$400
Mini-Split
Ductless systems
~$400
HPWH
Water heater
1.4M
Customers
29 counties
PPL's Act 129 energy efficiency program offers tiered rebates that reward higher-efficiency equipment. All rebates require ENERGY STAR certification and installation by a licensed HVAC contractor.
$350-$450
Ducted central heat pump replacing existing furnace/AC. Tiered by efficiency rating — higher SEER2/HSPF2 earns more.
~$400
Single or multi-zone ductless heat pump. Popular for older homes in Lehigh Valley and Lancaster area without ductwork.
~$400
ENERGY STAR certified HPWH replacing standard electric water heater. Uses 60-70% less electricity than resistance models.
PPL Electric is Pennsylvania's second-largest EDC, serving a wide swath of central and northeastern PA across 29 counties. The territory spans from the Lehigh Valley to the Poconos to the state capital region.
Allentown, Bethlehem, Easton
Largest PPL metro. Growing market with moderate labor costs.
Lancaster, Ephrata
South-central PA. Mix of suburban and rural. Lower installation costs.
Harrisburg, Hershey
State capital area. Good contractor availability. Central location.
Scranton, Wilkes-Barre
Coal country — many older homes with oil heat. Strong HP conversion opportunity.
State College, Bellefonte
University town. Zone 5A cold winters. Cold-climate models recommended.
Stroudsburg, East Stroudsburg
Tourist/vacation area. Many cabins and older homes. Cold Zone 5A.
Reading (partial overlap with Met-Ed)
Some areas served by PPL, others by Met-Ed. Verify by ZIP code.
York (partial overlap with Met-Ed)
Similar overlap with Met-Ed territory. ZIP code determines EDC.
Phase IV (current) ends May 31, 2026. Phase V begins June 1, 2026, and runs through May 31, 2031. The PA PUC approved Phase V on 2025-06-18, and it is expected to include higher heat pump incentives. For PPL customers, this could mean:
Strategy: If your current system is not in urgent need of replacement and you can wait until June 2026, Phase V may offer better PPL rebates. However, if your system is failing, do not delay — current Phase IV rebates are still available.
PPL's rate of approximately $0.21/kWh is comparable to PECO. Most of PPL territory is in climate Zone 5A, meaning colder winters and slightly higher heating costs than Zone 4A Philadelphia. Cold-climate models are strongly recommended.
HEAR rebates (up to $8,000 for low-income, $8,000 at 50% for moderate-income) will be available to PPL customers when Penn Energy Savers launches. Status: PENDING — DOE approval awaited. Program administrators hired (HER: Resource Innovations Aug 2025, HEAR: EGIS BLN Dec 2025). Launch date TBD.. Do not rely on HEAR funding for current purchasing decisions.
Select PPL Electric as your utility to see your estimated rebate and net cost.
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.
PPL Electric offers tiered rebates under its Act 129 energy efficiency program: $350-$450 for central ENERGY STAR air source heat pumps (tiered by efficiency), approximately $400 for ductless mini-splits, and approximately $400 for heat pump water heaters. These are direct rebates applied after installation through PPL's online portal.
PPL Electric Utilities serves approximately 1.4 million customers across 29 counties in central and northeastern Pennsylvania. Major service areas include the Lehigh Valley (Allentown, Bethlehem, Easton), Lancaster, Harrisburg, Scranton/Wilkes-Barre, State College, and surrounding communities. PPL is PA's second-largest EDC.
PPL offers moderate rebates compared to other PA utilities. Its $350-$450 ASHP rebate is higher than Duquesne Light ($200) and PECO base ($300), but lower than FirstEnergy subsidiaries (up to $500). However, PPL lacks the EAP stacking available to PECO customers. PPL customers should focus on Phase V increases expected starting June 2026.
Act 129 Phase V (June 1, 2026 - May 31, 2031) was approved by the PA PUC and is expected to include higher heat pump incentives reflecting electrification priorities. However, specific Phase V rebate amounts for PPL have not been published as of February 2026. Current Phase IV rebates remain available through May 31, 2026.
PPL Electric's residential rate is approximately $0.21/kWh as of early 2026, with a price-to-compare (PTC) rate around $0.13/kWh for generation. PPL rates have increased due to PJM capacity cost surges. PA is deregulated, so PPL customers can shop for competitive supply rates to potentially lower their total rate.
Yes, PPL Electric offers approximately $400 for ductless mini-split heat pumps through its Act 129 program. The equipment must be ENERGY STAR certified, installed by a licensed HVAC contractor, and you must submit a rebate application online at pplelectric.com with proof of purchase and installation invoice.
Connect with HICRA-registered installers approved for PPL Act 129 rebates across central and eastern Pennsylvania.
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