Heat Pump Rebates in Philadelphia & NJ (2026): What You Can Actually Get

Short answer: Philadelphia-area homeowners can currently stack PECO's heat pump rebate ($200–$300) with the Electrical Association of Philadelphia's Fall 2026 program ($250–$1,650) for over $1,900 combined. New Jersey homeowners can do even better — up to $7,500 through the state's Whole Home Energy Program, plus utility instant rebates. And the federal tax credit? It ended December 31, 2025. Here's the full picture.

First, the bad news: the federal tax credit is gone

The federal Energy Efficient Home Improvement Credit — the 30%, up-to-$2,000 heat pump tax credit you've probably seen advertised — ended for installations after December 31, 2025. If your system went in during 2025, you can still claim it on your 2025 tax return. But if a contractor is promising you a federal tax credit on a new 2026 install, walk away — they either don't know the rules or don't care.

What Philadelphia homeowners can get right now

• PECO rebate: $200–$300 on a ducted air-source heat pump and $150–$300 on a ductless mini-split, depending on the SEER2 efficiency rating. The application must be filed within 90 days of installation.
• EAP Fall 2026 program: the Electrical Association of Philadelphia pays $250–$1,650 on complete high-efficiency heat pump, central AC, and mini-split systems — and it stacks with the PECO rebate. The install must be a full system done through a participating contractor.
• Heating with gas today? PGW's EnergySense program rebates high-efficiency gas equipment too — see our full rebates page for those numbers.

What New Jersey homeowners can get

• NJ Whole Home Energy Program: $2,000 base plus $200 for every point of modeled energy savings, up to $7,500 — with 0% financing options for qualifying projects. Terms run through June 30, 2027.
• Utility instant rebates: on top of the Whole Home program, PSE&G pays up to $900 on qualifying heat pumps and Atlantic City Electric up to $1,300.
• Heat pump water heaters: $450 or more through PSE&G.

Why rebates go unclaimed

Two reasons: homeowners don't know the programs exist, and the paperwork has real deadlines — PECO's is 90 days from install. Rebates also have efficiency requirements (SEER2, HSPF2, AFUE), so the equipment has to be chosen with the rebate in mind before the install, not after.

That's why we bake it into the process: when Lumen quotes your heat pump installation, we tell you which programs your home and utility qualify for, install equipment that actually meets the spec, and file the applications for you.

Is a heat pump even right for your home?

Rebates sweeten the deal, but the system has to fit the house. Modern cold-climate heat pumps handle Philadelphia winters well — we covered the honest trade-offs in Is a Heat Pump Worth It in Pennsylvania? If your current system is on its way out, start there, then call (267) 252-2969 for a free estimate with the rebate math included.