What is open for Philadelphia homes in 2026
Every card names the fact we keep on file. PECO's amounts come from its rebate program site, PGW's from its EnergySense pages, and the rest from the state and the IRS. We re-read them on October 5, 2026.
PECO air source heat pump
$200 at 15.2 to 17.0 SEER2, $300 at 17.1 SEER2 or higher. Needs 11.0 EER2 and 7.8 HSPF2 on the whole-system rating.
PECO ductless mini-split
Same efficiency lines as the ducted rebate. Apply within 90 days.
PECO smart thermostat
$50 instant at select Home Depot stores and PECO Marketplace, or $25 after install online.
PECO solar rebate
For a first rooftop system, paid once PECO puts it In Service. No end date is shown on PECO's page, so confirm before you sign.
PGW roof insulation and air sealing
For gas-heated PGW customers. Needs a BPI-certified contractor. Runs to August 31, 2027.
PGW equipment rebates
Per piece of qualifying gas equipment, or up to $2,000 on the Affordable tier. First come, first served.
Weatherization Assistance Program
Air sealing, insulation and heating repairs for households at or below 200% of the federal poverty level.
PEA Built to Last
The Philadelphia Energy Authority lines up repair and energy programs in one process. No dollar amount is published.
Federal 25C and 25D credits
Heat pumps, insulation, solar and batteries all lost the federal credit after December 31, 2025.
PECO and PGW rebates stack because they pay for different things: PECO for electric equipment, PGW for gas equipment and roof insulation. Neither pays twice for the same item, and PECO does not pay a rebate on a thermostat if you took an instant discount on it.
A city of rowhouses
The Census Bureau's American Community Survey (2020 to 2024) counts 748,270 homes in Philadelphia. More than half (55.6%) are single-family attached homes, which means rowhouses and twins. Only 8.5% are detached, and 14.4% are in buildings of two to four units. Most are old: 83.3% were built before 1980 and 39.9% before 1940, while just 9.7% date from 2000 or later.
That mix shapes which upgrades pay. A rowhouse shares side walls, so heat leaves mainly through the roof and the front and back walls. That is why PGW's rebate targets roof insulation, and why a small ductless heat pump often beats ducts that were never built.
Which utility pays for what
The same survey shows how the city heats: 69.6% of households use utility gas, 24.7% electricity, 2.7% fuel oil and 1.7% bottled gas. If you burn gas, PGW's roof insulation and equipment rebates are yours, and PECO's electric offers matter mostly for cooling, a thermostat or a switch to a heat pump. If you heat with electricity, PECO's heat pump rebates are the main prize, because moving off baseboards or an old electric furnace cuts the most power.
PECO's heating page also lists gas furnace and boiler rebates, but those are for PECO natural gas customers, not for homes whose gas comes from PGW.
Almost half the city rents
About 48.2% of Philadelphia households rent. Rebates go to whoever pays the bill and buys the equipment, and PGW also has a separate application for landlords and building owners. If you rent, a smart thermostat or a few power strips are things you can do yourself. A heat pump or insulation needs your landlord to agree and, for PGW's roof rebate, to hire a BPI-certified contractor.
Seal the roof first, then pick equipment
Doing the envelope first lets you buy a smaller heat pump. A leaky rowhouse roof can make a system that is too big look too small. If your income is limited, apply for the free state weatherization program before you spend on anything else. If you own a house that needs repairs before insulation can go in, the Philadelphia Energy Authority's Built to Last program is the place to ask, at 215-686-4483.
Solar in Philadelphia
PECO lists a $500 rebate for a first residential solar installation. Pennsylvania also credits excess solar at the full retail rate for systems up to 50 kW through net metering. The state's solar page names two discount-pricing programs for Philadelphia residents, Solarize Greater Philadelphia and Solarize Philly, but it gives no dollar amount, and we did not read the program pages, so check their status yourself. The federal solar credit is gone, so the $500 and the net metering credit are what is left.
Winter in Philadelphia
Philadelphia's average January low is about -2.7°C (27°F), and the coldest reading in our ten years of data was -21.9°C. That is mild enough for most cold-climate heat pumps to carry the house. On the coldest nights some owners keep a gas furnace or electric strips as backup.
What we could not confirm
PECO's income-eligible offers are not on the pages we read, so we list no amount for them. We also could not tell whether PGW's thermostat discount is currently $70 or $90, since two PGW pages disagree. Both are worth a phone call before you buy.
Every rebate guide for Philadelphia
- Insulation rebates in Philadelphia
- Water Heater rebates in Philadelphia
- Heat Pump rebates in Philadelphia
- Smart Thermostat rebates in Philadelphia
Top-rated installers in Philadelphia
Ranked by Google reviews (minimum five). We don't take referral fees or paid placements. Ask each installer for the AHRI certificate of the whole system, because PECO pays on that rating.
See all Philadelphia installers →
What to do in Philadelphia
- Find out how you heat. Gas from PGW means PGW EnergySense. Electric heat means PECO.
- If household income is limited, apply for free weatherization before you buy anything.
- Get two or three quotes and ask for the AHRI certificate on any heat pump.
- Keep the paid invoice with model numbers.
- Apply to PECO within 90 days of the purchase, or through PGW on its own timeline.
Common questions
Does PECO pay for a heat pump in Philadelphia?
Yes. PECO pays $200 or $300 for a ducted air source heat pump and $150 or $300 for a ductless mini-split, depending on the SEER2 rating. The unit also needs 11.0 EER2 and 7.8 HSPF2.
Who pays for insulation in Philadelphia?
PGW pays $0.30 to $0.95 per square foot for roof insulation and air sealing in gas-heated homes. PECO's rebate list has no insulation item, and free state weatherization is open to households at or below 200% of the federal poverty level.
Is there a federal tax credit in 2026?
No. The 25C credit for heat pumps and insulation and the 25D credit for solar and batteries ended for spending after December 31, 2025.
How long do I have to apply to PECO?
PECO asks for your application within 90 days of the purchase or install, with a paid receipt that shows the model number, maker, price and date.
Is the PECO solar rebate still open?
PECO's solar page lists $500 for a first installation and shows no end date as of October 5, 2026. Earlier we recorded a closing window, so confirm with PECO at 888-573-2672 before you rely on it.
Will the new state rebates help?
Pennsylvania's Penn Energy Savers program has not launched. The state says it is changing the design after new federal guidance in June 2026 and has published no amounts or start date.
What to do next
Start with the Philadelphia heat pump rebate if you heat with electricity, or the insulation page if you burn gas. Run the Pennsylvania rebate calculator for your own home.
By Sam Menard. Sources, last read October 5, 2026: PECO rebate program: heating and cooling, PGW EnergySense residential rebates, Pennsylvania DCED: Weatherization Assistance Program, Philadelphia Energy Authority: Built to Last, Pennsylvania DEP: solar for residents, US Census Bureau, ACS 5-year estimates 2020 to 2024. All Philadelphia rebates → Every PECO rebate →