Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed
The state rebates are still not open — but Pennsylvania law forces every large electric utility to run its own programs, and there is a one percent state loan almost nobody uses.
Prices pulled August 16, 2026
19.30¢
per kWh, residential electricity
12% above the national average of 17.3¢. 15th most expensive of 51.
Up 40% since 2021 (8.8% a year), against 27% nationally.
$1.45
per therm, residential natural gas
$15.04 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 25% since 2021 (5.8% a year).
Heat pump vs. gas furnace — Close call
Pennsylvania's electricity-to-gas price ratio works out at 3.9-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
Don't wait for the state program. DEP's own page said as of May 2026 that it was still awaiting final DOE approval to launch the Home Energy Rebates, and pennenergysavers.com takes sign-ups for launch updates rather than applications. Register for the notification if you like, but plan your project around what exists now.
What exists now is your utility, and that is not a coincidence. Act 129 directs Pennsylvania's seven largest electric distribution companies — PECO, PPL, Duquesne Light and the FirstEnergy companies among them — to run energy efficiency and conservation plans. So in Pennsylvania the question is never really "does my state have a rebate," it is "what is my EDC offering this program year." Look up your own utility; the offers differ between them and change between plan phases.
The Pennsylvania Housing Finance Agency runs a loan program specifically for efficiency work — HEELP — at a fixed one percent for ten years with no prepayment penalty. That is a different instrument from a rebate and it is the one worth knowing about if the barrier is up-front cost rather than payback. Two mechanics matter: the contractor has to be PHFA-approved, and PHFA is explicit that you must not let work begin before the loan closes. Starting early can cost you the financing.
Eligible HEELP work is narrower than "energy improvements" generally — air sealing, insulation and ductwork; efficient windows and doors; heating or cooling repair and replacement; roof replacement. Income limits apply and PHFA notes they can be stretched in individual circumstances, so a decline on a first read of the table is worth a phone call.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
State law requires the seven largest electric distribution companies to run efficiency programs. The rebates most Pennsylvanians can actually claim come from their own utility, not from Harrisburg — find yours and check its current offers.
Program detailsA fixed one percent, ten-year loan for insulation and air sealing, windows and doors, heating and cooling replacement, or a roof. Contractor must be PHFA-approved, and work must not start before closing. Income-limited.
Program detailsPennsylvania's federally funded Home Energy Rebates. Awaiting DOE approval as of the state's own most recent update; the site collects sign-ups for launch news, not applications.
Program detailsEnded. No credit for expenditures made after 31 December 2025.
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
These open with Pennsylvania's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
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