Philadelphia HVAC: Permits, PECO and PGW Rebates, Licenses

In Philadelphia, heating is the bigger job. NOAA's 1991-2020 normals for the airport show about 4,510 heating degree days a year and 1,358 cooling degree days. Replacing a furnace, AC or heat pump needs an L&I mechanical permit. PECO pays $150 to $300 for qualifying central AC and heat pump systems, and PGW up to $800 for a gas furnace.

How cold do Philadelphia winters get, and what does that mean for your system?

NOAA's monthly normals for Philadelphia International Airport put the normal January low at 26.0°F and the normal high at 41.3°F. July runs from a normal low of 69.6°F to a high of 87.8°F. The annual normals file for the same station adds the counts below. All of them are 1991-2020 averages.

Heat pumps and backup heat in a Philadelphia winter

The temperature to watch is about 35°F. A 2011 DOE Building America guide written by two national labs says a standard central air-source heat pump loses heating efficiency below about 35°F. It adds that a backup heat source is often needed, especially in cold climates. In Philadelphia the normal low sits below that mark in every month from December through March, per NOAA's monthly normals.

The same guide describes two ways to set that up. An all-electric heat pump carries electric resistance strips. A dual-fuel system pairs the heat pump with a second heat source, such as a gas furnace. Ask each installer which setup they are quoting, at what outdoor temperature the backup takes over, and what the strips need from your electrical panel. Our guide to comparing HVAC quotes covers what a load calculation and a matched-system rating should show.

Check the ducts too. The DOE guide says furnaces generally deliver air at 130°F to 140°F, while heat pumps deliver it at about 80°F to 115°F. More air has to move to give the same warmth. That is why ducts may need to be larger for a heat pump than for a gas or oil furnace. Ask the installer to confirm that your ducts and registers suit the new system.

What efficiency rules apply to a new AC here?

Pennsylvania is not on DOE's lists for the Southeast or Southwest, so it falls under the North rules. DOE's 2023 standards FAQ sets the North minimum for a split central AC at 13.4 SEER2. Split heat pumps need 14.3 SEER2 and 7.5 HSPF2 nationwide. In the North the AC rule follows the date of manufacture. A unit built before 2023 to the older standard may still be installed. The rebates below ask for more than the federal floor.

Steam and hot-water boilers

The DOE guide says steam boilers run hotter than hot-water boilers and are inherently less efficient, though high-efficiency versions of both are sold. Its boiler tune-up list includes these checks:

• test for carbon monoxide spillage, and check the vent connector pipe and chimney;
• check the heat exchanger for cracks or leaks;
• on hot-water systems, bleed air from each radiator at the start of the heating season and test the pressure-relief valve;
• on steam systems, drain some water to remove sediment, and test the low-water cutoff and high-limit safety controls.

For a boiler that will not fire or will not warm the radiators, see our guide on a boiler not heating.

Which HVAC rebates can Philadelphia homeowners get in 2026?

Two utilities set most of the money. PGW says it has delivered natural gas across Philadelphia since 1836, and calls itself the largest municipally owned gas utility in the country. Exelon describes PECO as serving about 1.7 million electric customers in southeastern Pennsylvania. PECO's rebates below apply only to homes with PECO residential electric service. The table sums up each program as its own pages described it on November 2, 2026.

PECO's rebates for heat pumps and central AC

PECO's heating and cooling rebate page and its August 2026 application set the tiers. An ENERGY STAR air-source heat pump earns $200 at 15.2 to 17.0 SEER2 and $300 at 17.1 SEER2 or higher. Both tiers also need 11.0 EER2 and 7.8 HSPF2. Central AC earns $150 at 15.2 to 15.9 SEER2 and $200 at 16.0 or higher, with at least 12.0 EER2. A ductless mini-split heat pump earns $150 at 15.2 to 17.0 SEER2 and $300 at 17.1 or higher.

The rating that counts is the whole system. The form says the outdoor unit, the indoor coil and, in some cases, the air handler or furnace are rated together. The AHRI certificate for that match decides the tier. A condenser sold as "up to" a high SEER2 can land lower once it is matched. Ask for the AHRI certificate number before you sign.

The rules on the application are strict. The new equipment must replace an existing system in a home with PECO residential electric service, and new construction is not eligible. Tenants and owners can both apply. Customers who buy power from another supplier still qualify. PECO must receive the application within 90 days of the purchase date, with a paid receipt. If it is approved, PECO says the check arrives in four to six weeks. Funds are limited, and PECO can change or end the program without notice.

PECO has smaller offers too. A tune-up earns $50 for a heat pump or $25 for central AC. It must cover the refrigerant check and charge, the filters, the blower motor, and the condenser and reachable evaporator coil. An air handler or gas furnace with an ECM fan motor earns $50, but propane and oil furnaces do not qualify. PECO's gas furnace and boiler rebates on the same page are only for PECO natural gas customers. They do not apply if PGW delivers your gas.

PGW EnergySense rebates for gas heat

PGW's efficiency page says residential customers can get rebates of up to $800 for furnaces, $1,400 for boilers and $2,000 for combi boilers. You must be a PGW customer who is current on your bills, and the equipment must meet the EnergySense program rules. You apply online or by mail. The same page lists a $70 instant rebate on a smart thermostat from the PGW Marketplace. Income-eligible customers may get a thermostat and its installation for free.

Treat those figures as ceilings. The EnergySense site, which holds the efficiency minimums and the tier rules, did not respond when we tried it on November 2, 2026. Before you choose a model, ask PGW or your contractor which AFUE rating and which tier your job falls under. Get the answer in writing.

The EAP fall rebate round

The Electrical Association of Philadelphia (EAP) runs its own HVAC rebate, apart from PECO's. EAP's program page says PECO receives no payments in connection with it, and that homeowners save $250 to $1,650 in the fall 2026 round. Rebates are paid only on systems bought and installed through participating contractors, and you have no paperwork to file. EAP rebates cannot be combined with manufacturer rebates. Utility rebates such as PECO's can be, if the system meets the utility's rules.

The fall 2026 schedule pays by the AHRI rating of the complete system.

A mini-split heat pump rated at least 17 SEER2, 12 EER2 and 8.5 HSPF2 earns $250 for a single zone, or $200 per zone on a multizone system. A dual-fuel install, with the heat pump paired to a furnace, adds $250. The window is short. Contracts must be signed between August 3 and November 13, 2026, and systems installed by November 27. Claim forms are due to EAP by December 4. If you miss it, check EAP's page for any later round.

State and federal programs

Pennsylvania has not opened the federal Home Energy Rebates. The Department of Environmental Protection's IRA page says that as of September 2026 it is "awaiting final DOE approval to launch the Home Energy Rebate programs." The state's program site, Penn Energy Savers, says "Coming Soon" for spring 2027 and describes rebates for low and middle income households. DOE's Home Energy Rebates page sends homeowners to their state energy office for status. Do not sign a contract that depends on this money.

The federal tax credit is over for new installs. The IRS says the Energy Efficient Home Improvement Credit covers improvements made through December 31, 2025. A system installed in Philadelphia in 2026 does not qualify.

Do you need a permit to replace a furnace or AC in Philadelphia?

Yes. The Department of Licenses and Inspections (L&I) says you need a mechanical permit "to install devices regulated by the Philadelphia Mechanical and Fuel Gas Codes." That covers heating, ventilation and air conditioning. Replacing appliances in a one- or two-family home is eligible for an EZ permit, which needs no plans. The page exempts small appliances and ordinary repairs or maintenance. So a swap needs a permit, and a routine repair does not.

Fees are set per item. The mechanical permit page lists a $100 nonrefundable filing fee, due with the application and credited toward the final fee. Each appliance in a one- or two-family home is $69. Every permit adds a $3 city surcharge and a $4.50 state surcharge. Without plans, an online application is processed within five business days, or while you wait at the Permit and License Center.

Who does the work matters as much as the paperwork. L&I says any owner or authorized agent can apply, but "a licensed contractor must perform all work." Before the permit is issued, the contractor must be identified and confirm it is on the project. If your home is a historic property, the page says L&I will refuse the application without Historical Commission approval. Start there.

1. Agree in writing on who applies through eCLIPSE, the city's online permit system.
2. Get the permit number before work begins. The city's contractor guidance asks you to confirm the permit is posted at the property.
3. When the contractor is ready to start, an inspection is requested through eCLIPSE or at (215) 255-4040.
4. Hold the final payment until you have the Certificate of Approval, which L&I issues after all required inspections pass.

Boilers follow a slightly different path. The city's page says boiler installations are regulated by the Pennsylvania Department of Labor and Industry. The state's boiler program page exempts boilers in a single-family home with no business in it, and in buildings with four or fewer units, from its inspections. It adds that exempt work may still fall under the Uniform Construction Code and the local code official. For a home boiler swap, ask L&I or your contractor which approvals apply before work starts.

How do you check a Philadelphia HVAC contractor's license?

Philadelphia checks contractors at the permit stage. The mechanical permit page says the contractor must be current on all City of Philadelphia taxes and have current insurance on file with L&I. Sheet metal work must be done by a registered sheet metal technician or apprentice employed by the contractor.

The license type depends on the jobs a company takes. L&I's Contractor License page says most firms doing construction, demolition or repair need that license. It requires general liability coverage of at least $500,000 per occurrence, plus auto liability and workers' compensation. A business that only works on existing one- or two-family homes does not need it. It registers with the state as a Home Improvement Contractor instead.

The city's EZ permit page says work on an existing one- or two-family home may be done by a registered Pennsylvania Home Improvement Contractor who holds a Philadelphia Commercial Activity License. Ask which credentials your contractor holds, and write the numbers down. The city's contractor information page points to these lookups:

• Find a Licensed Contractor, which lists every actively licensed contractor in Philadelphia and any licensing violations;
• the Contractor Permit Lookup, to check the permits for your job after you hire;
• Atlas, which shows permits and violations by address;
• L&I's list of suspended and revoked contractors;
• the Pennsylvania Attorney General's Home Improvement Contractor search, or 1 (888) 520-6680, for state registrations.

The same page asks you to check references, get more than one bid, and look for complaints with the Better Business Bureau. Company websites will not always help with that. The table below sets our audit of Philadelphia-area HVAC company websites beside the figures for every city we measured. It shows how many sites leave out their Google rating, how many have no contact form, and how long the main content takes to appear on a phone.

Turn those gaps into a checklist. If a site shows no rating, open the company on Google Maps and read the newest reviews, including the low ones. If there is no form, call. Ask for the license or Home Improvement Contractor number. Run it through the city lookup or the Attorney General search, and check the suspended list before anyone comes to your house.

Can you get free heater repair in Philadelphia?

If your income qualifies, the city funds two programs. The Heater Hotline is run by the Energy Coordinating Agency (ECA) with support from the Division of Housing and Community Development. It makes "free, emergency repairs to home heaters." Call ECA at (215) 568-7190. The city warns that winter call volume is high, so a cold-weather call may reach an answering service, with a callback as soon as possible. Program questions go to the Division at (215) 686-9749.

The Basic Systems Repair Program makes free repairs to eligible owner-occupied homes in Philadelphia. Heating is on its list, along with electrical, plumbing, structural and roofing work. You must own and live in the home and meet the household income guidelines linked from the city page. Questions go to the Philadelphia Housing Development Corporation at (215) 448-2160. While you wait for help, our guide to no heat in the house walks through the first safe checks.

What should you do if you smell gas in Philadelphia?

PGW's emergency page says to "leave the area immediately," then call its 24-hour emergency hotline from a safe place.

1. Get out right away. Do not try to find the leak.
2. Avoid sparks. Do not use matches, lighters or electrical devices such as cell phones, do not switch lights on or off, and do not start any vehicle.
3. From a safe place, call PGW at 215-235-1212, at any hour.
4. Do not shut off gas valves or appliances. PGW will do that.
5. Stay out until PGW or the Philadelphia fire department declares the building safe. Do not try to put out a gas fire yourself.

Carbon monoxide is the other risk, and you cannot smell it. PGW's gas safety page says to install a battery-operated CO detector, change its batteries twice a year, and replace the detector every five years or as the maker says. If you suspect CO poisoning, call 911 or emergency medical help at once.

Winter adds two chores. PGW asks you to clear ice and snow carefully from the gas meter and from appliance exhaust vents, and to keep snow blowers and plows away from the meter. Its emergency page also says PGW inspects your meter and service lines for free every three years, if you give it access. For warning signs inside a gas furnace, see our guide to a cracked heat exchanger.

Questions people ask