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PECO and PPL Rebates in 2026: What You Can Get Around Philadelphia

By Dana Brooks · Sources verified by the editorial team on Oct 30, 2026

Which utility pays your rebate

Your rebate comes from the utility that serves the equipment's fuel:

  • Electric equipment (heat pumps, heat pump water heaters, central AC): your electric utility, which is PECO, PPL or Atlantic City Electric.
  • Smart thermostats: usually your electric utility (PECO, PPL or Atlantic City Electric), but PGW also offers instant smart thermostat rebates to its gas customers (see the PGW section).
  • Gas equipment (gas tankless or tank water heaters, furnaces, boilers): your gas utility, which is PECO gas or PGW (Philadelphia Gas Works).

Your electric and gas service can come from different companies. For example, a home with PECO electric and PGW gas would apply to PECO for a heat pump water heater rebate and to PGW for a gas tankless rebate. Check the company name on each of your bills.

PPL in Bucks and Montgomery counties: we couldn't confirm which communities in our area, if any, are served by PPL Electric Utilities. If your electric bill says PPL, use the PPL section below.

PECO electric rebates

Program term: June 1, 2026 through May 31, 2031. Who qualifies: a tenant or owner of a residence that currently receives PECO residential electric service. If you buy your electricity from an alternate supplier, you're still eligible.

Equipment Amount Key requirement Source
ENERGY STAR air-source heat pump $200 15.2–17.0 SEER2, 11.0+ EER2, 7.8+ HSPF2 (AHRI-certified system) PECO Heating & Cooling Rebates
ENERGY STAR air-source heat pump $300 17.1+ SEER2, 11.0+ EER2, 7.8+ HSPF2 PECO Heating & Cooling Rebates
ENERGY STAR ductless mini-split heat pump $150 15.2–17.0 SEER2, 11.0+ EER2, 7.8+ HSPF2 PECO ductless rebate form
ENERGY STAR ductless mini-split heat pump $300 17.1+ SEER2, 11.0+ EER2, 7.8+ HSPF2 PECO ductless rebate form
ENERGY STAR central AC $150 15.2–15.9 SEER2, 12.0+ EER2 PECO central AC and ASHP form
ENERGY STAR central AC $200 16.0+ SEER2, 12.0+ EER2 PECO central AC and ASHP form
Air-source heat pump maintenance / central AC maintenance $50 / $25 Refrigerant check and charge, filters, blower motor, coil PECO Heating & Cooling Rebates
ECM fan motor $50 Air handlers or natural gas furnaces (propane and oil not eligible) PECO Heating & Cooling Rebates
ENERGY STAR heat pump water heater $350 ENERGY STAR certified; replaces an existing water heater; PECO electric service PECO Water Heating Rebates
ENERGY STAR smart thermostat $50 instant, or $25 after installation $50 instant at select Home Depot stores and the PECO Marketplace; $25 post-installation rebate by online application only PECO Appliance Rebates

Source: PECO's program pages and June 2026 rebate forms, as of Oct 30, 2026. PECO's October 2026 Energy@Home newsletter also lists the $350 heat pump water heater rebate.

PECO says its smart thermostat rebate amount "is determined by your heating and/or cooling system that will be connected to your smart thermostat" (PECO Appliance Rebates, as of Oct 30, 2026).

PECO also lists smaller appliance rebates: air purifier $25, clothes dryer $15, clothes washer $25, dehumidifier $25, refrigerator $20, and advanced power strip up to $15 (PECO Appliance Rebates, as of Oct 30, 2026).

PECO rules worth knowing (from the June 2026 forms):

  • The equipment must be new and replace an existing heating or cooling system (or an existing water heater). New construction is not eligible.
  • Eligibility and the amount are based on the system's AHRI certificate and the installation date. "Up to" SEER ratings in ads don't count; the whole matched system is rated.
  • An air-source heat pump can't be qualified as a central air conditioner.
  • For ductless systems, indoor heads added later don't earn more rebate.
  • The rebate won't be more than what you paid for purchase and installation. PECO may do a site verification.
  • You can't claim both the instant discount and the mail-in rebate for the same item.
  • The forms say customers are responsible for any taxes on the rebate. Ask a tax professional how that applies to you.

Income-qualified rebates: we couldn't confirm whether PECO offers higher, income-qualified amounts in the current program. Ask PECO at 1-888-573-2672.

PECO natural gas rebates

For PECO natural gas customers only.

Program dates differ by form. PECO's gas furnace and boiler form and gas heating conversion form say "This program term is January 1, 2026 through December 31, 2026." PECO's current water heater form, which covers gas water heaters, says June 1, 2026 through May 31, 2031 (as of Oct 30, 2026).

Equipment Amount Key requirement Source
ENERGY STAR natural gas tankless water heater $200 ENERGY STAR; PECO gas service PECO Water Heating Rebates
ENERGY STAR natural gas storage tank water heater $50 ENERGY STAR; PECO gas service PECO Water Heating Rebates
ENERGY STAR gas furnace $100 95.0–96.9% AFUE, ≤2% air leakage, ECM PECO Heating & Cooling Rebates
ENERGY STAR+ gas furnace $400 97%+ AFUE, ≤2% air leakage, ECM PECO Heating & Cooling Rebates
ENERGY STAR gas boiler $250 90%+ AFUE PECO Heating & Cooling Rebates
ENERGY STAR+ combi boiler $500 94%+ AFUE; must be the primary system for both space heating and water heating PECO Heating & Cooling Rebates
Natural gas heating conversion $400 Converting your main heating system from oil, propane or electric to natural gas; proof of the removed equipment is required PECO gas conversion form

Source: PECO program pages, as of Oct 30, 2026. The storage tank, tankless and combi boiler amounts also appear in PECO's October 2026 newsletter.

PECO gas rules (from the current forms): the applicant must be a tenant or owner of a property that currently receives PECO residential natural gas service. Gas water heaters must be new and replace an existing water heater. New construction is not eligible. The application must be received within 90 days of the purchase date. (Water heater form; gas heating form, as of Oct 30, 2026.)

These gas amounts are lower than earlier in 2026. PECO's January 2026 water heater form (program term January 1 – May 31, 2026) listed $125 for a gas storage tank and $400 for a gas tankless water heater. That form's deadline for equipment bought and installed before 6/1/26 was 7/20/26, which has passed. We couldn't confirm the exact date the current, lower gas amounts took effect. If you see the higher numbers on another website, they're likely out of date.

PPL Electric Utilities rebates

Promotion dates: 6/1/2026 – 5/31/2031. Who qualifies: a property with an active PPL meter.

Equipment Standard amount Income-qualified (0–250% of the federal poverty level) Key requirement Source
Air-source heat pump, tier 1 $225 $350 ENERGY STAR; ≥15.2 SEER2, ≥11.7 EER2, ≥7.8 HSPF2; under 65 kBTU/h PPL ASHP form
Air-source heat pump, tier 2 $325 $475 ≥16.3 SEER2, ≥12.9 EER2, ≥8.2 HSPF2 PPL ASHP form
Mini-split heat pump $225 per outdoor unit $350 ENERGY STAR; ≥15.2 SEER2, ≥11.7 EER2, ≥7.8 HSPF2 PPL mini-split form
Heat pump water heater $400 $500 ENERGY STAR, UEF ≥ 3.3 PPL HPWH form
Smart thermostat $50 self- or contractor-installed; $100 if installed by a PPL Trade Ally — ENERGY STAR; home must have an air-source heat pump, fossil-fuel heat with central AC, or an electric furnace with central AC. Baseboard, geothermal and mini-split homes are not eligible. PPL smart thermostat form
Ground-source heat pump $500 we couldn't confirm See PPL's page PPL heating and cooling rebates
Central AC $150 or $175 we couldn't confirm See PPL's page PPL heating and cooling rebates

Source: PPL rebate forms dated June 1, 2026 and PPL's heating and cooling page, as of Oct 30, 2026.

Income-qualified amounts and bonus: PPL's 2026 forms list income limits for the higher rebates: up to $39,900 for a household of 1, $54,100 for 2, $68,300 for 3, $82,500 for 4, plus $14,200 for each additional person. Households at 0–250% of the federal poverty level can also get a $350 bonus for completing three or more qualifying projects within a rolling year, with at least one of them insulation or air sealing. See the PPL forms for details (as of Oct 30, 2026).

PPL rules worth knowing:

  • No new construction (ASHP form).
  • Equipment that already got a midstream or instant discount can't get a second rebate.
  • The AHRI certificate must cover the whole matched system.

PGW (Philadelphia Gas Works) EnergySense rebates

For PGW gas customers. PGW says "EnergySense rebates are available from 09/01/2024 – 08/31/2027," first-come, first-served while funds last. On Oct 30, 2026, the page showed "Percentage of Funds Used: 50%."

Equipment First unit / additional units Affordable EnergySense tier (first / additional) Key requirement Source
Tankless water heater $400 / $350 $700 / $350 ENERGY STAR; gas pressure ≤4.5" w.c.; ≤150 MBH; models on PGW's Qualified Product List qualify (ask PGW about others) PGW EnergySense rebates
Furnace $400 / $250 $800 / $250 95% AFUE PGW EnergySense rebates
Boiler $1,000 / $700 $1,400 / $700 94% AFUE PGW EnergySense rebates
Combi boiler $1,400 / $1,000 $2,000 / $1,000 94% AFUE; gas pressure ≤4.5" w.c.; ≤205 MBH; models on PGW's Qualified Product List qualify (ask PGW about others) PGW EnergySense rebates

Source: PGW EnergySense Residential Rebates, as of Oct 30, 2026.

  • Affordable EnergySense tier: for customers who, within the last year, enrolled in PGW's CRP, received a Hardship Fund grant, or got a LIHEAP grant assigned to PGW.
  • Who qualifies: PGW says rebates "are only available for premises served by PGW Firm natural gas rates."
  • PGW didn't list a rebate for a gas storage-tank water heater.
  • Smart thermostats: PGW offers instant rebates of up to $70 on qualifying ENERGY STAR smart thermostats through its online marketplace, after you log in to verify your PGW account.
  • Payment delays: PGW's site says "rebate check processing is currently delayed."
  • PGW's page also lists roof insulation rebates and mentions the PEDA KEEP Loan (through NEIF) for financing. See the page for details.

Atlantic City Electric (South Jersey)

For Atlantic City Electric customers. Your HVAC contractor submits the rebate.

Equipment Amount Key requirement Source
ENERGY STAR heat pump water heater $750 ENERGY STAR certified ACE HVAC Efficiency Program
Air-source heat pump split system, tier 1 $500 ≥15.2 SEER2, ≥11.7 EER2, ≥7.8 HSPF2 ACE HVAC Efficiency Program
Air-source heat pump split system, tier 2 $750 ≥17.1 SEER2 ACE HVAC Efficiency Program
Ductless mini-split heat pump $750 SEER2 ≥17.1, EER2 ≥11.7, HSPF2 ≥7.8 ACE HVAC Efficiency Program
Cold-climate ducted or ductless heat pump $2,000 NEEP/AHRI certified; limited time, April 1, 2026 – June 30, 2027 ACE HVAC Efficiency Program
ENERGY STAR smart thermostat $150 Installed as part of an HVAC install; limited time, April 1, 2026 – June 30, 2027 ACE HVAC Efficiency Program
Central AC $100 / $200 Tier 1 / tier 2 ACE HVAC Efficiency Program

Source: Atlantic City Electric HVAC Efficiency Program, as of Oct 30, 2026. Low- to moderate-income customers may get an extra $300 per qualified item. ACE's page headline says "up to $1,300 in HVAC rebates."

Other South Jersey utilities: we couldn't confirm current rebate amounts from PSE&G, South Jersey Gas, New Jersey Natural Gas or the NJ Clean Energy Program. Check with your utility directly.

How to claim, step by step

  1. Confirm your utilities. Look at the company name on your electric and gas bills. That tells you which program applies.
  2. Before you sign, check that the equipment qualifies. Ask for the AHRI certificate number for the whole matched system (heat pumps, central AC) or confirm ENERGY STAR status (water heaters). For PPL heat pump water heaters, confirm UEF 3.3 or higher. For PGW tankless water heaters and combi boilers, check PGW's Qualified Product List. PGW says a model that meets its requirements but isn't on the list may still qualify; contact energysense@pgworks.com or 855-749-7658.
  3. Decide who files. Ask whether your contractor submits the rebate or you do. PECO allows contractor submission. Atlantic City Electric's contractor submits it.
  4. Keep the paperwork. Get a dated, paid receipt or invoice showing the manufacturer, model number, price and date. PPL also asks for quantity. PGW asks for an invoice paid in full with make, model, serial number and date, the AHRI or ENERGY STAR certificate, a copy of your PGW bill, and the contractor's name and address on the form.
  5. File before the deadline:
    • PECO: the application must be received within 90 days of the purchase date, per the forms. (PECO's program pages say "within 90 days of purchase/install.") Apply online at peco.com/rebates (PECO calls this the fastest payment), by mail to PECO Home Rebates, 16350 Felton Road, Lansing, MI 48906, by email at pecohomerebates@cmcenergy.com, or through your contractor. Phone: 1-888-573-2672.
    • PPL: submit the complete application within 180 days of installation. Apply online at pplelectric.com/MyRebate (faster), or by mail to PPL Electric Utilities Rebates, 16350 Felton Road, Lansing, MI 48906.
    • PGW: rebates are first-come, first-served by the date your application is received, through 08/31/2027 or until funds run out. Apply through PGW's rebate page.
    • Atlantic City Electric: your contractor submits it online.
  6. Wait for payment. PECO says a rebate check arrives in 4–6 weeks if approved. PGW's site says its rebate check processing is currently delayed (as of Oct 30, 2026). We couldn't confirm typical timing for PPL or Atlantic City Electric.

Sources: PECO June 2026 forms and program pages; PPL forms dated June 1, 2026; PGW EnergySense page; ACE program page. All as of Oct 30, 2026.

What changed in 2026

The federal 25C tax credit ended for 2026 installs. The IRS says that under Public Law 119-21 (the "One, Big, Beautiful Bill," July 4, 2025), the 25C credit "will not be allowed for any property placed in service after December 31, 2025" (IRS FS-2025-05). For 2023–2025, the credit was 30%, up to $1,200 a year in general and $2,000 a year for heat pumps, heat pump water heaters and biomass. The IRS says it's claimed for the tax year the equipment is installed, not merely purchased, on Form 5695 (IRS 25C page, as of Oct 30, 2026). So a heat pump or heat pump water heater installed in 2026 doesn't get the 25C credit. If your equipment was installed by December 31, 2025, ask a tax professional whether you can still claim it for 2025.

Many websites, including some cost guides and a Pennsylvania state page, still describe the credit as if it's available, often as "up to $2,000." Those pages are out of date for 2026 installs.

A Senate bill, the Lowering Home Energy Costs Act (S.3722), was introduced on January 29, 2026 and referred to the Senate Finance Committee. As of Oct 30, 2026, Congress.gov lists it as introduced only, which means it is not law. Congress.gov hasn't published a summary yet, so we couldn't confirm what the bill would do. The IRS pages still say the credit isn't allowed for property placed in service after December 31, 2025.

Pennsylvania's HOMES and HEEHR home energy rebates haven't launched. HEEHR (High-Efficiency Electric Home Rebate) is Pennsylvania's name for the federal HEAR rebates. Both programs run through Penn Energy Savers. PA DEP says that "As of September 2026, DEP is awaiting final DOE approval to launch the Home Energy Rebate programs" (PA DEP). The Penn Energy Savers site says "Coming Soon – Spring 2027" (Penn Energy Savers, as of Oct 30, 2026). According to that site, households below 80% of area median income could get rebates of up to 100% of project cost up to a maximum, and households at 81–150% of area median income could get 50% of project cost. The per-item maximums aren't published yet. Questions go to RA-EPHomeEngRebates@pa.gov. Our view: if your water heater or heating system fails, don't wait on a program that isn't open yet.

PECO's electric and water heater rebates moved to a new program term on June 1, 2026. PECO's gas furnace, boiler and conversion forms list a January 1 – December 31, 2026 term. PECO's gas rebate amounts are lower than they were in early 2026 (see the PECO gas section above).

Common mistakes

  • Missing the filing window. PECO's is 90 days from purchase. PPL's is 180 days from installation. They're different, so check which one applies.
  • Counting on the federal tax credit. It doesn't apply to equipment installed in 2026.
  • Trusting "up to" efficiency ratings. PECO and PPL rate the whole matched system on its AHRI certificate, not the best number in an ad.
  • Applying to the wrong utility. Electric equipment rebates come from your electric utility. Gas equipment rebates come from your gas utility.
  • Claiming new construction. PECO's rebates and PPL's heat pump rebates don't apply to new construction.
  • Double-dipping. You can't take PECO's instant discount and also mail in a rebate for the same item. PPL won't rebate equipment that already got a midstream or instant discount.
  • Missing PPL's thermostat exclusions. Homes with baseboard heat, geothermal or mini-split heat pumps aren't eligible for PPL's smart thermostat rebate.
  • Losing the receipt. PECO, PPL and PGW all ask for a dated invoice with the model number.

Questions to ask your contractor

  1. Will you submit the PECO, PPL or PGW rebate for me, or do I file it? Will you take it off the invoice?
  2. What's the AHRI certificate number for this exact system? Can you put it in the quote?
  3. Does this system meet PECO's 17.1+ SEER2 tier or PPL's 16.3+ SEER2 tier? What's the price difference compared with the base tier?
  4. For a heat pump water heater: is the model ENERGY STAR certified, and is its UEF 3.3 or higher (needed for PPL)?
  5. For a gas tankless water heater in PGW territory: is the model on PGW's Qualified Product List? If not, does it meet PGW's requirements, and have you checked with PGW?
  6. Are you a PPL Trade Ally? (That affects PPL's smart thermostat rebate: $100 instead of $50.)
  7. Have you had rebates denied before, and why?

FAQ

Is there still a federal tax credit for heat pumps or water heaters in 2026? No, not under 25C. The IRS says it isn't allowed for property placed in service after December 31, 2025. Check with a tax professional about your own situation.

How much is the PECO heat pump water heater rebate? $350 for an ENERGY STAR certified unit that replaces an existing water heater, for PECO electric customers (PECO, as of Oct 30, 2026).

How much is the PPL heat pump water heater rebate? $400 for an ENERGY STAR unit with UEF 3.3 or higher, or $500 for households at 0–250% of the federal poverty level (PPL form, as of Oct 30, 2026).

How long do I have to apply? PECO: the application must be received within 90 days of the purchase date. PPL: within 180 days of installation. PGW: first-come, first-served through 08/31/2027 while funds last.

Can renters get PECO rebates? PECO's forms say the applicant must be "a tenant or owner of a residence that currently receives PECO residential electric service."

I buy my electricity from another supplier. Am I still eligible for PECO rebates? Yes. PECO's forms say customers who chose an alternate electric supplier are still eligible.

Does PECO pay more for income-qualified households? We couldn't confirm that for the current program. PPL and PGW do list higher income-qualified amounts.

When will Pennsylvania's HOMES and HEEHR (HEAR) rebates open? The Penn Energy Savers site says "Coming Soon – Spring 2027." PA DEP said in September 2026 that it was awaiting final federal approval.

Is a rebate taxable? PECO's forms say customers are responsible for any taxes on the rebate. We can't give tax advice, so ask a tax professional.

Thinking about a project?

If you'd like a quote from a local contractor, you can use our quote form. We may earn a referral fee when we connect you with a contractor. That doesn't change the rebate amounts in this guide, which come straight from each program's own page. Learn how we make money.

Sources

All checked Oct 30, 2026 unless noted.