PPL Electric: $225 to $500

Heat Pump Rebates in Allentown

Allentown sits in PPL Electric Utilities' territory, and PPL pays rebates on ENERGY STAR heat pumps. Allentown also has a lot of homes heated with electricity or oil, which are the homes that save the most by switching. Here is what PPL pays in 2026 and how to claim it.

← Back to Allentown rebate hub Insulation Rebates in Allentown Water Heater Rebates in Allentown Smart Thermostat Rebates in Allentown

What heat pump rebates pay in Allentown

We re-read each PPL Electric product page on October 5, 2026. Every amount below is listed in PPL's rebate store with an Apply for Rebate button, and the efficiency rules come from the same pages.

Open

Air source heat pump

$225 or $325

ENERGY STAR certified. Tier 1 needs SEER2 15.2+, EER2 11.7+ and HSPF2 7.8+. Tier 2 needs SEER2 16.3+, EER2 12.9+ and HSPF2 8.2+.

Open

Mini-split heat pump

$225

ENERGY STAR certified. Needs SEER2 15.2+, EER2 11.7+ and HSPF2 7.8+. PPL bases the rebate on the outdoor unit.

Open

Ground source heat pump

$500

ENERGY STAR certified geothermal system. Closed loop water-to-air needs EER 17.1+ and COP 3.6+.

Closed

Federal heat pump tax credit (25C)

Ended

Ended for spending after December 31, 2025.

Two dates and one rule

PPL says equipment installed on or before May 31, 2026 is no longer eligible, so an older install can't be claimed now. The rule that trips people up is the AHRI certificate. PPL needs one that lists every part of the system, indoor coil and outdoor unit together. Ratings for a single part do not count, and new construction is not eligible.

How Allentown heats its homes

The US Census Bureau's American Community Survey (2020 to 2024) counts 49,502 homes in Allentown. Heating is split more evenly here than in most Pennsylvania cities: 44.2% of households use utility gas, 39.5% use electricity, and 14.1% still burn fuel oil. That oil share is high, and it is where a heat pump makes the biggest difference.

The homes are old, too. 82.1% were built before 1980 and 37.9% before 1940. Just over a third (36.0%) are rowhouses or twins, and about a quarter (25.9%) are detached houses.

Who gains most

Oil-heated homes. Oil means deliveries, a tank, and prices that jump in cold snaps. A heat pump runs on PPL power and can carry most of the heating season, with the oil furnace kept as backup if you want.

Electric baseboard or electric furnace homes. Moving from resistance heat to a heat pump cuts the power needed for the same warmth. With nearly 4 in 10 Allentown homes on electric heat, this is the most common good fit in the city.

Gas homes. Savings are smaller. A heat pump often makes sense when the central air conditioner needs replacing anyway, since a heat pump does both jobs.

Allentown winters

Allentown's average January low is about -4.3°C (24°F), and the coldest reading in the past ten years was -23.2°C (about -10°F). That is a little colder than Philadelphia. Ask for a cold-climate model, and ask the installer how the system will handle the coldest nights. Many homes keep their existing furnace for those few days.

Check for a better offer first

PPL's rebate store has a Check Best Offers tool. Some customers qualify for larger rebates and free extra services based on income. It takes a few questions, so do it before you sign a contract.

Top-rated installers in Allentown

Ranked by Google reviews (minimum five). We don't take referral fees or paid placements. Ask each installer to confirm the model is ENERGY STAR certified, since PPL requires it.

Schuler Service, Inc.
★ 4.9 (3,794 Google reviews)
Visit site →
Jack Lehr Heating Cooling & Electric
★ 4.9 (1,576 Google reviews)
Visit site →
Edwin Stipe HVAC & Plumbing
★ 4.9 (923 Google reviews)
Visit site →
Hannabery HVAC
★ 4.9 (469 Google reviews)
Visit site →
Dual Temp Co., Inc.
★ 4.9 (336 Google reviews)
Visit site →

See all Allentown installers →

How to get a PPL heat pump rebate in Allentown

  1. Use PPL's Check Best Offers tool to see which rebate level you get.
  2. Get quotes for an ENERGY STAR certified model. Ask for the model numbers and the AHRI certificate for the full system in writing.
  3. Have it installed, and keep the invoice.
  4. Apply on PPL's rebate store. The deadline is shown when you apply.

Common questions

How much does PPL pay for a heat pump in Allentown?

$225 or $325 for an air source heat pump, $225 for a mini-split and $500 for a ground source heat pump, all ENERGY STAR certified.

Can I claim a heat pump I installed last spring?

No. PPL says equipment installed on or before May 31, 2026 is no longer eligible.

Does the federal tax credit still apply?

No. The federal heat pump credit ended for spending after December 31, 2025.

I heat with oil. Is a heat pump worth it?

Oil homes usually gain the most, because oil costs more per unit of heat and needs deliveries. Many keep the oil furnace as backup for the coldest days.

How do I know if I get the higher rebate?

Use the Check Best Offers tool on PPL's rebate store. It asks a few questions and shows your offer.

What paperwork does PPL want for a heat pump?

An AHRI certificate that lists the whole system, with the indoor coil and the outdoor unit. PPL does not accept ratings for single parts, and it does not pay on new construction.

What to do next

See every PPL Electric rebate, our Allentown insulation rebates (seal and insulate first so a smaller heat pump will do), or the $400 heat pump water heater rebate.

By Sam Menard. Sources, last read October 5, 2026: PPL Electric rebate store, ENERGY STAR heat pumps, IRS: Energy Efficient Home Improvement Credit, US Census Bureau, ACS 5-year table B25040, PPL Electric: air-source heat pump rebate. All Allentown rebates → Every PPL Electric rebate →

PPL Electric customer? See every PPL Electric rebate, with heat pump, water heater, insulation and thermostat amounts.

Statewide answer: see Pennsylvania home battery rebates and incentives, with what is open, what has closed and the dates to watch.

Statewide answer: see Pennsylvania home solar rebates, with what is open, what has closed and the dates to watch.

Compare top-rated installers in Allentown

Free for homeowners. We rank local companies by their Google reviews, weighted so many good reviews beat a handful. How we rank.

Top-rated heat pump installers in Allentown →11 local companies ranked by 11,184 Google reviews. Top picks: Schuler Service, Inc., Jack Lehr Heating Cooling & Electric, Edwin Stipe HVAC & Plumbing.
From Sam

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