Pennsylvania Energy Rebates 2026

Pennsylvania homeowners in 2026 can access: (1) HEAR rebates for heat pumps (up to $8,000), heat pump water heaters (up to $1,750), insulation (up to $1,600), and electrical panels (up to $4,000) — administered by PA DCED; (2) HOMES whole-home performance rebates up to $8,000; (3) Utility rebates from PECO (Philadelphia area), PPL Electric, or Duquesne Light depending on your location; (4) Low-interest Keystone HELP loans for efficiency projects. The 25C and 25D federal tax credits expired December 31, 2025.

No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. If you installed qualifying equipment before that date, you can still claim the credit on your 2025 tax return. For 2026 installations, HEAR and HOMES rebates are the primary federal incentive paths.

The Pennsylvania Department of Community and Economic Development (DCED) administers both the HEAR and HOMES rebate programs in Pennsylvania, working through participating contractors and retailers. Contact DCED or visit their website for the current list of participating contractors in your area. Local Community Action Agencies can also help connect lower-income households to both weatherization services and HEAR/HOMES rebates.

Yes. Pennsylvania's Keystone Home Energy Loan Program (HELP), administered by PHFA (Pennsylvania Housing Finance Agency), offers low-interest financing for energy efficiency improvements including heat pumps, insulation, and related work. Loan terms up to 10 years. Combining a Keystone HELP loan with HEAR or HOMES rebates can make large-scale efficiency projects financially feasible.

Pennsylvania has a large stock of older homes (many pre-1980) that rely on oil or propane heating, which is among the most expensive home heating fuel types. Switching to a heat pump eliminates exposure to volatile oil/propane prices while qualifying for HEAR rebates (up to $8,000) and potential utility incentives. Pennsylvania's electric rates (~15¢/kWh) are moderate, making heat pump operating costs competitive with fossil fuels in most of the state.

PECO customers in southeastern Pennsylvania can access the highest combined incentive stack — up to $1,950 on a qualifying heat pump by combining PECO's base rebate ($200–$300) with Electrical Association of Philadelphia (EAP) contractor bonuses ($500–$1,400). PPL Electric is the strongest standalone utility, offering up to $475 on heat pumps, $400–$500 on heat pump water heaters, and up to $575 per insulation measure. Duquesne Light offers up to $650 for geothermal systems. Income-qualifying households can layer federal HEAR rebates (up to $8,000 for heat pumps, under 150% AMI) on top of any utility rebate for maximum total incentives.

Yes. PECO's Smart Ideas program offers $200–$300 for ducted air-source heat pumps and $150–$300 for ductless mini-splits. These can stack with Electrical Association of Philadelphia (EAP) contractor bonuses for a combined total up to $1,950. PECO also offers $350 for heat pump water heaters. Note that PECO's Act 129 Phase IV ended May 31, 2026 — Phase V amounts are being finalized. Contact PECO at 1-888-573-2672 or visit peco.com to confirm current Phase V rebate levels before ordering equipment.

Yes — PPL Electric offers comprehensive rebates across central and northeastern Pennsylvania. Heat pump rebates range from $225 to $475 for ducted air-source units (two efficiency tiers) and up to $500 for geothermal systems. Heat pump water heaters earn $400–$500. Insulation rebates cover attic, basement wall, rim joist, and exterior wall improvements at up to $575 each, plus up to $165 for air sealing. Smart thermostats qualify for $50–$100. Apply at pplelectricsavings.com.