Pennsylvania Heat Pump Leasing & Installation Guide
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
Buy it or finance it. Your comfort, your call
There’s no wrong way to get cozy. Here’s how the options stack up, so you can choose what works best for you.
| Comfort Plan | Cash | Loan | |
|---|---|---|---|
| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
| Maintenance included | Yes | No | No |
| Eligible for incentives | Yes | No | No |
Get a quote See how Comfort Plan works
Pennsylvania Heat Pump Rebates & Incentives
State and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Pennsylvania homeowners.
FirstEnergy Air Source Heat Pump
Up to $500
FirstEnergy’s Pennsylvania electric companies offer up to $500 rebate on ENERGY STAR certified air source heat pumps for qualified products purchased through May 31, 2026.
Eligibility: Available to residential customers of FirstEnergy’s Pennsylvania electric companies for qualified products purchased between June 1, 2021 and May 31, 2026. Rebate applications must be submitted within 90 days of purchase.
PPL Electric Heat Pump Rebate
Up to $450
PPL Electric Utilities offers heat pump rebates with programs running through May 2026. Up to $450 available on air source heat pumps and up to $400 on ductless heat pumps.
Eligibility: PPL’s program runs through May 2026 for existing homes. Residential customers of PPL Electric Utilities may qualify for rebates on qualifying HVAC equipment.
PECO Energy Heat Pump Rebate
Up to $500
PECO’s program runs from June 2021 through May 2026, covering precision heating systems and appliances. Rebates available on qualifying ENERGY STAR heat pump installations.
Eligibility: PECO’s program runs from June 2021 through May 2026. Available to PECO residential customers for ENERGY STAR certified equipment. Apply within 90 days of purchase.
Duquesne Light Heat Pump Rebate
Up to $200
Duquesne Light Company’s Watt Choices program runs through May 31, 2026, offering $200 rebate on air source heat pumps meeting efficiency standards.
Eligibility: Duquesne Light’s program runs through May 31, 2026. Single-family homes, multi-family units, and mobile homes qualify. Submit within 180 days of installation.
Columbia Gas Heat Pump Rebate
Up to $2,000
Columbia Gas of Pennsylvania offers $2,000 rebate for high efficiency natural gas-fired heat pumps (heating only – furnace or boiler type models).
Eligibility: Primary heat/fuel source must be natural gas. Rebates are not available to fuel switching customers. Rebate quantities are limited and approved on first-come, first-served basis.
Federal IRA Tax Credit
Up to $2,000
The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.
Pennsylvania homeowners have access to multiple active heat pump rebate programs through major utilities including FirstEnergy, PPL, PECO, Duquesne Light, and Columbia Gas, with rebates ranging from $200 to $2,000 depending on the program and equipment type. These utility rebates are available through May 2026 and can be combined with the federal IRA tax credit of up to $2,000 to significantly reduce heat pump installation costs. Palmetto can help homeowners identify which programs they qualify for, navigate the application process, and maximize available rebates to make heat pump upgrades more affordable.
Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.
Pennsylvania Electricity Prices
Understanding Pennsylvania’s electricity costs is essential when choosing a heating and cooling system that works for your budget long-term.
Pennsylvania’s electricity rates have climbed significantly in recent years. From 2021 to 2023, residential rates jumped from 13.8 to 18.1 cents per kilowatt-hour—outpacing the national average during that period.
Heat pumps offer a practical response to rising electricity costs. Because they’re 2-3 times more efficient than traditional HVAC systems, they use substantially less electricity to deliver the same heating and cooling comfort.
As electricity rates continue fluctuating, efficiency becomes increasingly valuable. A heat pump’s lower energy consumption means your monthly costs remain more manageable, even when rates rise—protecting your budget for years to come.
Price of Energy: Pennsylvania vs National Average
0¢
10¢
20¢
30¢
13.7¢
13.8¢
15.0¢
15.9¢
16.0¢
18.1¢
16.5¢
17.8¢
2021
2022
2023
2024
US Average
Pennsylvania
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Pennsylvania Utility Providers
Pennsylvania’s electricity costs vary significantly by provider. According to 2023 data, rates ranged from 11.25¢ to 22.07¢ per kWh across major utilities, with the state average at 18.10¢—slightly above the national average of 16.0¢.
Several factors influence these rates. Utilities like Duquesne Light and PPL Electric face higher infrastructure costs in densely populated areas, while competitive suppliers like Energy Harbor and Inspire Energy often offer lower rates through market-driven pricing and renewable energy portfolios.
Heat pumps can help manage energy costs regardless of your utility provider. Their high efficiency means they use significantly less electricity than traditional heating systems, potentially lowering your total energy spending even in areas with above-average rates.
Pennsylvania Utilities Electricity Rates
PECO Energy Co
16.18¢
+1%
PPL Electric Utilities Corp
19.55¢
+22%
West Penn Power Company
14.75¢
-8%
Duquesne Light Co
22.07¢
+38%
Metropolitan Edison Co
17.24¢
+8%
Pennsylvania Electric Co
19.07¢
+19%
Reliant Energy Northeast LLC
14.16¢
-12%
Pennsylvania Power Co
17.29¢
+8%
Energy Harbor Corp.
11.25¢
-30%
Inspire Energy Holdings, LLC
12.86¢
-20%
PA Average
18.10¢
+13%
US Average
16.0¢
—
Source: US Energy Information Administration, 2023, Form 861, Table 6
Pennsylvania Heat Pump City Guides
Explore detailed heat pump installation guides for cities across Pennsylvania. Each guide includes local utility rates, incentives, and climate-specific recommendations.
Allentown Erie Harrisburg Philadelphia Pittsburgh Scranton Wilkes-Barre
Frequently Asked Questions
Do heat pumps work well in Pennsylvania?
Yes, heat pumps work well in Pennsylvania. Modern cold-climate heat pumps are designed to operate efficiently in temperatures well below freezing, making them suitable for Pennsylvania’s winters. They provide both heating and cooling year-round, and with electricity at 17.8¢ per kWh in Pennsylvania, many homeowners see meaningful energy savings compared to traditional heating systems.
How much does a heat pump cost in Pennsylvania?
Heat pump costs in Pennsylvania typically range from $5,000 to $20,000 for a complete installation, depending on your home’s size, existing ductwork, and the system’s efficiency rating. This upfront investment can be offset by federal tax credits of up to $2,000 under the Inflation Reduction Act, plus any available local rebates in your area.
What are the best heat pump brands for Pennsylvania homeowners?
Top heat pump brands for Pennsylvania homeowners include Mitsubishi, Carrier, Lennox, Trane, and Daikin. These manufacturers offer cold-climate models engineered to perform efficiently in Pennsylvania’s winter temperatures, which can drop well below freezing. Look for units with ENERGY STAR certification and high HSPF2 ratings to maximize efficiency given Pennsylvania’s 17.8¢ per kWh electricity rates.
When choosing a brand, consider both equipment quality and installation expertise. Palmetto offers professionally installed heat pumps through a Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase where you may qualify for up to $2,000 in federal tax credits. The right brand depends on your home’s specific heating needs, budget, and whether you prioritize warranty coverage or ownership.
Are there heat pump rebates available in Pennsylvania?
Yes, Pennsylvania homeowners can access heat pump rebates through federal and local programs. The federal Inflation Reduction Act offers tax credits up to $2,000 for qualifying heat pump installations when you purchase your system outright. Some Pennsylvania utility companies and municipalities also provide additional rebates and incentives to help reduce upfront costs.
Should I lease or buy a heat pump in Pennsylvania?
The choice between leasing and buying a heat pump in Pennsylvania depends on your financial situation and preferences. Buying means paying upfront but owning the equipment outright, plus you may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act and local rebates. Leasing through a plan like Palmetto’s Comfort Plan requires $0 upfront, offers predictable monthly payments, and includes all maintenance and repairs.
Is a heat pump worth it financially in Pennsylvania?
Yes, heat pumps can be financially worthwhile in Pennsylvania. Modern heat pumps are highly efficient, often delivering 2-3 times more heating energy than the electricity they consume. With Pennsylvania’s electricity rate at 17.8¢ per kWh, many homeowners see lower heating costs compared to oil, propane, or electric resistance heating systems.
What size heat pump do I need for my Pennsylvania home?
The right heat pump size for your Pennsylvania home depends on factors like square footage, insulation quality, ceiling height, window efficiency, and local climate conditions. Most homes need between 2 to 5 tons of heating capacity, with each ton covering roughly 400-600 square feet in moderate climates. A professional energy assessment is essential to determine the correct size for your specific situation.