2026 PA HVAC Rebates: UGI & Met-Ed

Berks County savings on heat pumps, furnaces, boilers & water heaters

Ask Which Rebate You Qualify For

If you are replacing HVAC equipment in Berks County in 2026, a local utility rebate can cut your out-of-pocket cost. The two utilities that serve most of our area, UGI and Met-Ed, both run residential rebate programs on qualifying high-efficiency equipment. The federal tax credit that used to stack on top of them ended for equipment installed after December 31, 2025, and this guide explains what that means for you. It breaks down what is available, which upgrades qualify, and how to claim it. Rebate amounts and program rules change, so always confirm current terms with the utility before you buy. Our team can also tell you which incentive fits the equipment you are considering. Call (610) 780-9350.

UGI Save Smart Rebates (Natural Gas)

UGI's Save Smart program offers rebates when you install qualifying high-efficiency natural gas equipment. These are the residential rebates most relevant to a heating or water-heating upgrade in our service area:

EquipmentRequirementRebate
Gas furnaceENERGY STAR certified$500
Gas boiler94+ AFUE$1,200
Tankless water heaterENERGY STAR certified gas$400

If you heat with natural gas, a high-efficiency furnace installation or boiler installation is often the clearest path to a rebate. The $1,200 boiler rebate is one of the larger single incentives available locally, which matters for the many older Berks County homes that run hydronic or radiator heat. A tankless water heater upgrade can add the $400 rebate on top.

Met-Ed Residential Rebates (Electric)

Met-Ed, the electric utility across much of Berks County, runs a residential rebate program on ENERGY STAR certified cooling and heat-pump equipment:

EquipmentRequirementRebate
Geothermal heat pumpENERGY STAR certifiedUp to $650
Air-source heat pumpENERGY STAR certifiedUp to $500
Central air conditionerENERGY STAR certifiedUp to $250

Heat pumps carry the strongest incentives here because they run on electricity and are highly efficient. If you are weighing a heat pump installation or replacing an aging central air conditioner, the Met-Ed rebate is the incentive to plan around now that the federal tax credit has ended (see below). We service geothermal on a repair-and-maintenance basis and can advise on Met-Ed's geothermal rebate for existing systems.

Federal Tax Credit: What Changed for 2026

The federal Energy Efficient Home Improvement Credit, often called 25C, covered part of the cost of qualifying heat pumps, central air conditioners, furnaces, and boilers. Congress ended it for equipment placed in service after December 31, 2025. A system installed in 2026 does not earn this credit, so do not build it into your budget.

  • Installed in 2025 or earlier. You may still be able to claim the credit on the federal return for the year the equipment was placed in service. Keep your paid invoice and the manufacturer's certification statement, and confirm the details with your tax preparer.
  • Installed in 2026. No federal tax credit applies under current law. The UGI and Met-Ed rebates above are the incentives to plan around.

Pennsylvania's Department of Environmental Protection is also setting up the federally funded Home Energy Rebates program. It had not opened for applications when this guide was last updated in September 2026, and rebates of that kind are generally not paid for work finished before a program opens. Check the department's website for current status before you count on it.

How to Claim Your Rebate, Step by Step

  1. Confirm the equipment qualifies. Check that the model is ENERGY STAR certified or meets the program's efficiency threshold before you buy. We can confirm this on any system we quote.
  2. Keep every document. Save your paid invoice, the model and serial numbers, and the manufacturer's certification statement. Rebate applications ask for these.
  3. Submit the utility rebate. UGI and Met-Ed each have a residential rebate application on their websites. Submit within the program's deadline after installation.
  4. Installed in 2025? Claim the federal credit on that return. The Energy Efficient Home Improvement Credit ended for equipment placed in service after December 31, 2025. If your system went in during 2025, the credit is claimed on your 2025 federal return. Equipment installed in 2026 does not qualify.
  5. Ask us if you are unsure. We install this equipment every week and can point you to the right form for your upgrade.

Which Upgrade Qualifies? Talk to Art Smith And Son

The fastest way to know what you can save is to tell us what you are replacing. We serve Berks County from our Fleetwood headquarters, we install the equipment that qualifies for these programs, and we do not charge for an estimate on new equipment. If a rebate makes an upgrade affordable, we will tell you, and if financing helps bridge the rest, we work with several lending partners. Explore the paired cost guide to see what else moves the total price of a project.

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Frequently Asked Questions

What is the $5,000 rule for HVAC repair vs. replacement?

The $5,000 rule is a rule of thumb: multiply the age of the system by the estimated repair cost, and if the result is more than $5,000, replacement is usually the smarter choice. A cheap repair on a young system is worth it; an expensive repair on an old system rarely is. We give you the honest number so you can decide.

Do you offer financing for HVAC replacements?

Yes. We work with lending partners so you can spread the cost of a new system over manageable payments. Financing pairs well with utility rebates, which reduce the total you finance. Ask us to walk through the options when we provide your estimate.

Is there still a federal tax credit for a new HVAC system in 2026?

No. The federal Energy Efficient Home Improvement Credit ended for equipment placed in service after December 31, 2025, so a system installed in 2026 does not earn it. If your equipment was installed in 2025, you may still be able to claim the credit on that year's federal return, and it could be combined with a UGI or Met-Ed rebate for the same installation. Confirm the details with your tax preparer.

©Red Barn Media Group 2026