Pennsylvania Incentives Rebates Tax Credits & Loans

Pennsylvania Department of Environmental Protection Residential Incentives, Federal Rebates, Federal Tax Credits & Loans

Financial Incentives

Energy Financial Incentives for Pennsylvania Residents

According to the U.S. Energy Information Administration, the average Pennsylvania family consumes more than 10,000 kilowatt-hours (kWh) of electricity annually and spends more than $2,000 per year on energy bills. A homeowner can take steps to make their home more energy efficient at little or no cost. Some projects, such as lighting changes, require little financial investment. Other projects, such as insulation or improvements to heating and cooling systems, may require significant financial investment. Fortunately, there are renewable energy and energy efficiency financial incentives to help. 

Act 129 Electric Company Energy Efficiency Programs and Rebates

The Pennsylvania Public Utility Commission (PUC) implements Act 129, which guides consumers and electric utilities toward achieving reduced energy consumption and peak electric demand. Through Act 129, Pennsylvania’s flagship energy efficiency law, the commonwealth has saved over 8.8 million megawatt hours of electricity usage since 2009 resulting in $6.4 billion in savings to Pennsylvania electric customers, while employing over 68,000 people in the fieldOpens In A New WindowMore information about energy efficiency programs that may be eligible to you from your electric company is available here.

Energy Assistance Programs

For Pennsylvania citizens having a difficult time paying their utility bills, the PUC provides a listing of energy assistance programs to help with lowering your monthly bill, budget billing, installation of energy saving features, and more.

Weatherization Assistance Program

Pennsylvania’s Weatherization Assistance Program strives to increase energy efficiency in low income homes by reducing energy costs and increasing comfort while safeguarding health and safety. Visit DCED’s website to determine if you are eligible to receive assistance and to locate a weatherization provider.

Homeowners Energy Efficiency Loan Program (HEELP)

The Pennsylvania Housing Finance Agency’s (PHFA) HEELP offers loans for specific energy efficiency repairs. Loans between $1,000 and $10,000 are offered at a fixed-rate of 1 percent for 10 years with no prepayment penalties. 

Federal Rebates for ENERGY STAR Products

To encourage customers to buy energy efficient products, ENERGY STAR partners occasionally with sponsors to provide special offers, such as sales tax exemptions, credits, or rebates on ENERGY STAR certified products. Click here and enter your zip code to see what offers may be available in your areaOpens In A New Window.

Federal Tax Credits for Consumer Renewable Energy

A tax credit reduces the amount of tax you have to pay. For example, if you owe $800 in taxes at the end of the year, and you get a $300 tax credit, then you will only owe $500. If you don’t pay any taxes, then you can’t get the tax credit for renewable energy. For information about available tax credits for products such as: geothermal heat pumps, small wind turbines, solar energy, fuel cells, and microturbine systems, click hereOpens In A New Window.

Alternative Fuel Vehicle (AFV) Rebate Program

Pennsylvania provides a cash rebate to consumers for the purchase of a new plug-in hybrid, plug-in electric, natural gas, propane, and hydrogen fuel cell vehicle. For more information about the AFV Rebate Program, click here or call 866-294-3854, Harrisburg area: 717-214-3492.

Plug-In Electric Drive Motor Vehicle Federal Tax Credit

A federal tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery. Eligible vehicles must have a battery capacity of at least five kWh, use an external source of energy to recharge the battery, have a gross vehicle weight rating of up to 14,000 pounds, and meet specified emission standards. For more information, click hereOpens In A New Window or call the U.S. Internal Revenue Service at 800-829-1040.

Adams Electric Cooperative Energy Efficiency Loan Program

Adams Electric offers financing for energy-efficient and alternative generation projects through the National Cooperative Bank (NCB)Opens In A New Window

U.S. Department of Energy’s “The Energy Saver Guide”

The Energy Saver guide shows you how easy it is to cut your energy use at home and on the roadOpens In A New Window

Database of State Incentives for Renewables and Efficiency

Click here for a list of additional incentives that may not be included aboveOpens In A New Window.

PA Power Switch

Are you interested in shopping for electricity? The Pennsylvania Public Utility Commission offers the PA Power Switch program where depending where you live, you may be able to save money by switching your electric supplier, the company that generates your electricity. Also, you have the option to switch to a green/renewable energy supplier. For more information about understanding how to shop, what fixed and variable rates are, the switching process, questions to ask your supplier and clean energy suppliers, visit their websiteOpens In A New Window.

Loan Programs for Home Improvements & Repairs

Homeowners Energy Efficiency Loan Program (HEELP)

The Homeowners Energy Efficiency Loan Program (HEELP) offers loans between $1,000 and $10,000 for specific energy efficiency repairs at a fixed-rate of one percent (1%); (APR 1%) for ten years with no prepayment penalties. (For a representative $10,000 loan with $0 financing charge. Subject to credit approval and restrictions.)

HEELP loans are more affordable than you may think: $44 per month for a $5,000 loan or $88 per month for a $10,000 loan. With such affordable payments, now you can make those much needed energy efficiency repairs.

The specific uses for the HEELP funds are:

  • Air sealing, insulation and ductwork
  • Energy efficient windows and doors
  • Energy efficient heating or cooling system repairs or replacements
  • Roof replacements

The HEELP income limits are listed in the chart below.

Persons80% of AMI*

∗ Limits are effective June 13, 2023 and thereafter. The Agency may make exceptions to these limits. These limits may be increased up to 150% Area Median Income (AMI) based upon individual circumstances. Please contact PHFA at 1.855.827.3466 for more information.

Download the Borrower Application. PHFA will underwrite your application and let you know if you are approved. If we have a local HEELP Loan Provider in your area we will refer you there. Otherwise, we will walk you through how to get the work that you need to have done approved.

Unsure if you should apply for HEELP? Complete the Self Pre-Screening Form to see for yourself if HEELP may be an option for you.

HEELP Approved Contractors

Locate an approved HEELP contractor in your area. If you do not see your contractor on the list, have the company apply to become an approved contractor.

To locate a contractor in your area, please choose a county from the menu below.

     Choose a County     All Counties     Adams     Allegheny     Armstrong     Beaver     Bedford     Berks     Blair     Bradford     Bucks     Butler     Cambria     Cameron     Carbon     Centre     Chester     Clarion     Clearfield     Clinton     Columbia     Crawford     Cumberland     Dauphin     Delaware     Elk     Erie     Fayette     Forest     Franklin     Fulton     Greene     Huntingdon     Indiana     Jefferson     Juniata     Lackawanna     Lancaster     Lawrence     Lebanon     Lehigh     Luzerne     Lycoming     McKean     Mercer     Mifflin     Monroe     Montgomery     Montour     Northampton     Northumberland     Perry     Philadelphia     Pike     Potter     Schuylkill     Snyder     Somerset     Sullivan     Susquehanna     Tioga     Union     Venango     Warren     Washington     Wayne     Westmoreland     Wyoming     York        

Questions or concerns regarding this list should be directed to the Homeownership Programs Department.

Are you a contractor interested in doing HEELP work?

All contractors working with HEELP borrowers must be approved. Download the Contractor Application.