What heat pump rebates pay in Philadelphia
Every amount below comes from PECO's rebate program site (the page PECO's own website shows inside its heating and cooling page), which we re-read on October 5, 2026. PECO serves all of Philadelphia, so these numbers are the same in every neighbourhood, from Fishtown to the Northeast.
PECO air source heat pump
$200 for 15.2 to 17.0 SEER2. $300 for 17.1 SEER2 or higher. The unit also needs at least 11.0 EER2 and 7.8 HSPF2.
PECO ductless mini-split
The amount depends on how efficient the model is. Same minimum ratings as the ducted rebate.
Federal heat pump tax credit (25C)
The federal credit ended for spending after December 31, 2025. Don't count it in your budget.
Working it out
A rowhouse owner swaps an old central air conditioner for a ducted heat pump rated 17.5 SEER2. That clears the 17.1 SEER2 line, so PECO pays $300. If the same owner picked a 16 SEER2 model, the rebate would be $200. The $100 gap is worth asking about when you compare quotes. Apply within 90 days of buying, or the rebate is gone.
One PECO rule catches people. PECO pays on the whole system's rating in the AHRI database, not on the "up to" number some makers print on a brochure. Ask your installer for the AHRI certificate for your exact indoor and outdoor pairing before you sign. PECO also asks for a paid receipt that shows the model number, maker, price and date.
What Philadelphia homes look like
Philadelphia is a rowhouse city. The US Census Bureau's American Community Survey (2020 to 2024) counts 748,270 homes in the city. Just over half (55.6%) are single-family attached houses, which mostly means rowhouses and twins. Only 8.5% are fully detached. Most homes are old: 83.3% were built before 1980, and 39.9% before 1940.
About 7 in 10 Philadelphia households (69.6%) heat with gas from PGW, the city gas utility. About a quarter (24.7%) heat with electricity, and 2.7% with fuel oil. Close to half of households (48.2%) rent.
Who gains most from a heat pump in Philadelphia
The best fit is a home that already heats with electricity. If you have electric baseboards or an old electric furnace, a heat pump uses much less power to make the same heat. With about a quarter of the city on electric heat, that is a lot of homes.
Oil-heated homes are the next best fit, because oil is costly and needs deliveries. Gas homes can still switch, but the savings are smaller, and PECO's rebate does not change that math. Many gas homes add a heat pump to replace an old central air unit and keep the gas furnace as backup on the coldest nights.
Rowhouse tips
Rowhouses share walls, which keeps heat in, so they often need a smaller heat pump than a detached house of the same size. Many Philadelphia rowhouses have no ducts. A ductless mini-split, with one or two heads mounted on the wall, is the usual fix, and PECO pays $150 or $300 for it. Think about where the outdoor unit goes. On a narrow lot it often ends up on a flat roof or a small back patio, so ask your installer early.
Does a heat pump keep up in a Philadelphia winter?
Philadelphia's average January low is about -2.7°C (27°F). The coldest reading in the last ten years was -21.9°C (about -7°F). A cold-climate heat pump keeps heating well below the January average. On the rare very cold nights, you may want backup heat. Ask your installer what temperature the model is rated to before you sign.
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 exact SEER2, EER2 and HSPF2 ratings in writing, because those numbers decide your PECO rebate.
See all Philadelphia installers →
How to get a heat pump rebate in Philadelphia
- Check that your electric account is with PECO. Every Philadelphia home is in PECO's area.
- Get two or three quotes. Ask each installer for the model's SEER2, EER2 and HSPF2 ratings.
- Pick a model that clears 11.0 EER2 and 7.8 HSPF2. For a ducted system, aim for 17.1 SEER2 or higher to get $300.
- Keep your invoice and model number after the install.
- Apply on PECO's rebate page within 90 days of the purchase.
Common questions
How much is the PECO heat pump rebate in Philadelphia?
$200 or $300 for a ducted air source heat pump, based on its SEER2 rating, and $150 or $300 for a ductless mini-split, based on efficiency.
Is the federal heat pump tax credit still available?
No. The federal credit for heat pumps ended for spending after December 31, 2025, so it no longer applies to new installs.
How long do I have to apply for the PECO rebate?
PECO asks you to apply within 90 days of the purchase. Apply soon after the install so you don't miss it.
Can I get a rebate if I heat with gas from PGW?
PECO's heat pump rebate is for PECO electric customers, and that includes every Philadelphia home. The rebate is about the heat pump, not your old heating fuel. Savings on your bills are smaller if you are leaving gas than if you are leaving electric baseboards.
Can renters in Philadelphia get the rebate?
The rebate goes to the person who buys the equipment, which is usually the owner. If you rent, talk to your landlord before anything is installed.
What does PECO check when I apply?
A paid receipt with the model number, maker, price and purchase date, and a unit that is new and installed at a home with PECO electric service. PECO bases the amount on the whole-system rating, not an "up to" rating.
What to do next
See the full list of PECO rebates, read our Philadelphia heat pump water heater page if your water heater is electric, or pair your heat pump with a PECO smart thermostat rebate.
By Sam Menard. Sources, last read October 5, 2026: PECO heating and cooling rebates, IRS: Energy Efficient Home Improvement Credit, ENERGY STAR product finder, US Census Bureau, ACS 5-year table B25024, PECO rebate program: heating and cooling. All Philadelphia rebates → Every PECO rebate →