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. This fact sheet describes some financial incentives that may be available to Pennsylvania residents who wish to save energy and money.
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 65,000 people in the field. More 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.
Keystone Home Energy Loan Program (HELP)
The Keystone HELP Program is a loan program that allows consumers to get a low cost loan for the installation of various home energy efficiency upgrades. Upgrades include: ENERGY STAR rated and high efficiency heating, air conditioning, air sealing, insulation, windows, doors, geothermal, and "whole house" improvements using Home Performance with ENERGY STAR. For more information about Keystone HELP, click here or call 888-232-3477.
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 area.
Federal Tax Credits for Consumer Renewable Energy and Energy Efficiency Products
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 energy efficiency. For information about available tax credits for products such as: geothermal heat pumps, small wind turbines, solar energy, fuel cells, and microturbine systems, click here.
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 here or call the U.S. Internal Revenue Service at 800-829-1040.
Click here for more information on low-cost/no-cost energy efficiency improvements.
Database of State Incentives for Renewables and Efficiency
Click here for a list of additional incentives that may not be included above.
PA Power Switch
Are you interested in shopping for electricity? The Pennsylvania Public Utility Commission offers the PAPowerSwitch 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 website.