Your 2023 guide to Pennsylvania energy efficiency and heat pump rebates

Looking for an easy-to-understand guide on Pennsylvania energy rebates and federal tax credits for home efficiency upgrades?

You just found the right corner of the internet. (Lucky you!)

Use the links below to jump ahead to the programs you’re most interested in.

If this is your first time here, we’d like to introduce ourselves before we get started: We’re NuWatt Energy, and we help you make your homes more comfortable and energy-efficient year-round.

Thankfully, there are plenty of Pennsylvania energy rebates, and even new federal incentives, to help you conserve energy at home—all while making your home feel better, no matter what the weather brings. (Here's looking at you, winter!)

And how can using a rebate to make home upgrades affect your average cost of utilities?

Getting a rebate for an energy-efficient home upgrade, like replacing your 20-year-old HVAC system with a heat pump, saves you money on your home appliance or service purchase. Then the upgrades themselves go to work by reducing your overall energy usage.

And often these home improvements can cut your usage significantly, especially when you invest in upgrading your home’s energy storage, getting professional EV ports installed, or replacing older appliances with energy-efficient ones.

Selecting the ideal air source heat pump system requires a holistic approach that considers factors beyond mere efficiency. Factors such as your home's size, layout, and regional climate must be considered to ensure optimal performance and comfort. Partnering with our experienced professionals ensures that you make an informed decision that aligns with your unique needs, maximizing the long-term benefits of your investment.

If you own your home and want to reduce your carbon footprint, the government offers the largest tax incentives for qualifying HVAC equipment by opting for heat pumps. Starting in 2023, you are eligible for a federal tax credit covering 30% up to $2,000 of the heat pump cost and installation. This tax credit is capped at $2,000 per year.

It is recommended to spread out home improvements over several years to take advantage of annual aggregate limits. For example, optimizing attic insulation before getting a new air source heat pump is wise to avoid paying for excessive heating and cooling. Upgrading insulation and heat pump together in the same year can qualify you for a tax credit of up to $1,200 for insulation and up to $2,000 for the heat pump. You can combine a heat pump installation with window or door replacements to maximize your tax credits. Replacing your water heater the following year can benefit from an additional 30% tax credit of up to $2,000. You may also qualify for up to $600 in tax credits if you need an electric panel upgrade to accommodate the new water heater.

Energy efficiency requirements apply to split and packaged systems.

However, it's important to note that this credit only applies if the heat pump is installed to service an existing primary residence and not for new constructions or rentals. Annual aggregate and credit limits apply to claims for home equipment and improvement. You can claim up to $3,200 in efficiency tax credit in one year, the total annual limit.

When you’re ready to make your home more efficient, energy rebates can help save you money on qualifying home upgrades.

Homeowners can apply for PA energy rebates directly through their utility company. You’ll fill out an application directly with your utility, and they’ll send you the rebate money once processed.

(We’ve included lists for all Pennsylvania utilities, including PECO rebates, PPL rebates, and FirstEnergy rebates below.)

There are a few ways to find rebates for PA electric companies and gas utility providers:

• See lists of Pennsylvania energy rebates below in this article
• Discover energy star rebates using the Energy Star Rebate finder tool
• Get in contact with your utility company directly

Many utility companies in Pennsylvania are incentivized—and even required—to reduce the amount of energy their customers use. So they offer rebates to encourage you to make the upgrades your house needs to reduce your energy usage. It’s a win for everyone!

At NuWatt Energy, we can help you get important upgrades that make your home more comfortable, healthy, and efficient. (And you can use your local energy rebates, too.) Learn how.

When you’re ready to make your home more efficient, energy rebates can help save you money on qualifying home upgrades.

If you’re a PECO customer, quite a few rebates are available to you when you make energy-saving home upgrades that are ENERGY STAR® certified.

Here’s a quick list of PECO rebates (we’ll look at some of them in-depth below!):

• Appliance rebates for certified appliances
• Air purifier
• Bathroom ventilation fan
• Clothes dryer (electric)
• Clothes washer
• Dehumidifier
• Heat pump clothes dryer
• Heat pump water heater
• Refrigerator
• Room air conditioner
• ENERGY STAR® pool pumps
• Heating and cooling rebates, including air-source heat pumps and ductless mini-split heat pumps
• Heat pump water heater
• PECO new home rebates for ENERGY STAR® certified homes (2)

You’ll need to check with PECO directly to determine what rebates are currently available. But when you work with NuWatt to make energy-efficient home upgrades, we can help you find the right rebates for your home.

PECO smart home rebates

PECO does offer rebates for ENERGY STAR® certified homes. Your home builder can provide certification based on certain requirements met by new construction homes (3).

PECO HVAC rebates or PECO air conditioner rebates

A few PECO air conditioner options offer a rebate, including ENERGY STAR® certified room air conditioners, central air conditioning units, air source heat pumps, and ductless mini-split heat pumps that meet certain specifications.

If you’re a PPL utility customer, rebates are available to you, too! Here’s an overview of the PPL rebates available on ENERGY STAR® certified upgrades, and we’ll cover a few more in-depth below.

• Air-source heat pump
• Central air conditioning
• Ductless mini-split heat pumps
• Retrofit bonus
• Heat pump water heater
• Smart thermostats
• Water heating and central heating fuel switch

Remember, check directly with your utility to determine active rebates.

PPL HVAC rebates

PPL offers several HVAC rebates, including savings for air-source heat pumps, ductless mini-split heat pumps, and central air conditioning upgrades.

Wondering if it’s the right time for your house to get a new air conditioner? Learn when to replace your AC here.

PPL heat pump rebate

PPL heat pump rebates are available to current PPL customers for air-source heat pumps and ductless mini-split heat pumps.

With NuWatt Energy, you can get a heat pump professionally installed (and use your PPL rebate) with zero hidden costs. Learn more.

PPL smart home rebates

If you’re building a new home, PPL offers rebates for ENERGY STAR® certified homes. Your home builder will be able to provide certification based on certain requirements met by new construction homes (4).

PPL energy savings program

Through the PPL energy savings program, utility customers can cut costs on important residential and business energy-saving upgrades. Customers can also shop in the PPL marketplace for discounts on energy-efficient products (5).

Learn how to upgrade to a heat pump for no hidden costs.

If you’re a Pennsylvania Power Company (Penn Power), Metropolitan Edison Company (Met-Ed), or Pennsylvania Electric Company (Penelec) customer, this section is for you!

FirstEnergy customers, below are rebates available when you update certain appliances to ENERGY STAR® certified products.

• Air purifier
• Ceiling fan with LED light kit
• Clothes dryer
• Clothes washer
• Dehumidifier
• Dishwasher
• Freezer
• Refrigerator
• Smart thermostat
• Room air conditioner
• Variable speed pool pump
• Air source heat pump
• Central air conditioner
• Circulation pump
• Ductless mini-split AC
• Furnace fan
• Geothermal heat pump
• Heat pump air to water w/domestic hot water
• HVAC tune-up
• Packaged terminal air conditioner
• Packaged terminal heat pump
• Room air conditioner
• Heat pump water heater
• Solar water heater (11)
• Ventilation bath ran

Check with your utility to see current FirstEnergy rebates in your area.

FirstEnergy appliance rebate

Many FirstEnergy appliance rebates are available, from air purifiers and dishwashers to air source heat pumps and HVAC tune-ups (listed above).

If you’re curious about what energy-efficient home upgrades to make first, check out our guide on what to do for the most effective solutions to home energy reduction.

If you're a Duquesne Light Company customer, here are the rebates available when you update certain appliances to ENERGY STAR® certified products.

• Dehumidifier
• Freezer
• Refrigerator
• Smart thermostat
• Variable speed pool pump
• Air source heat pump
• Central air conditioner
• Ductless mini-split AC
• Heat pump water heater
• Duct Insulation
• Basement/Crawl Space Insulation

Check with your utility to see what current Duquesne Light Company energy rebates are available in your area.

Duquesne Light Company appliance rebate

Many Duquesne Light Company appliance rebates, including air source heat pumps (listed above), are available. If you’re curious about what energy-efficient home upgrades to make, check out our guide on what to do about your home’s energy potential for the most effective solutions to home energy reduction.

Duquesne Light Company energy savings program

As a current customer, you can cut costs on important residential and business energy-saving upgrades through the Duquesne Light Company energy savings program. You can also shop the Duquesne Light Company marketplace for discounts on energy-efficient products (10).

Looking to lower your energy use and make your home more comfortable, all while keeping money in the bank? Learn how you can get professional heat pump installation with no hidden costs.

Electrically heated homes

There are a few UGI rebates available for electrically heated homes. Appliances can include:

• Clothes washer
• Dehumidifier
• Dishwasher
• Freezer
• Refrigerator
• Smart thermostat
• Room air conditioner
• Ductless mini-split AC
• Central air conditioner

UGI appliance rebate

Many UGI appliance rebates are available, from freezers and refrigerators to ductless mini-splits and smart thermostats (listed above). Check out this guide on how to make the most of your mini-split heat pump in 2023. 

For income-based help with your energy bill costs in Philadelphia, check out the following resources:

• PECO Customer Assistance Program
• PGW Assistance Programs and Grants
• PPL WRAP Assistance
• Pennsylvania Public Utility Commission Assistance Programs

With a low-cost or free home energy audit through your local utility company, you can have a certified contractor visit your home. They’ll make custom recommendations for ways you can improve your comfort and efficiency.

• PPL In-Home Audits
• PECO Energy Assessments
• Duquesne Light Company (DLC) Whole House Energy Audit
• UGI Utilities Home Energy Evaluation
• Columbia Gas of Pennsylvania Energy Audit
• Duquesne Light Company Residential Comprehensive Audit
• FirstEnergy Home Energy Audit (for Met Ed, PennElec, Penn Power, and West Penn Power customers)

If you’re ready to upgrade your HVAC through energy rebates, electric air-source heat pumps are the way to go.

Heat pumps consist of an outdoor unit connected to one or more indoor units by a line set, which carries heat between the two. Instead of burning fossil fuels, these highly efficient systems are powered by electricity to move - rather than create - heat to keep your home at a comfortable temperature year-round. Today's cold climate heat pumps can be up to 400% efficient, and many provide efficient heating at outdoor temperatures as low as -15°F.

A heat pump runs on electricity to cool your home in summer and heat your home in the winter. It’s a two-for-one HVAC appliance, whisper quiet, runs on clean energy, and can be installed without existing ductwork if needed. Learn more about how a heat pump works.

And you can get heat pump installation in Pennsylvania and surrounding areas with no hidden costs with NuWatt Energy. (Remember, you can still use your PECO, PPL, or FirstEnergy rebates!)

Ready to increase your home’s energy efficiency and comfort? NuWatt Energy is the better way to get home energy improvements—and we’ll help you figure out which PA energy rebates you can apply to your home upgrades.

Living in an eligible area in Pennsylvania, you might be able to get a heat pump installed (along with professional energy storage and a solar system if you need it) under a straightforward payment plan that works best for you… all backed with an energy-savings guarantee.

We stand by our work. In fact, we’re the first company to offer home solar and energy efficiency upgrades this way. Learn more.

See if your home qualifies in 2 minutes.