Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

01

Benefits of Palmetto Heat Pumps

Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.

Year round comfort

Year Round Comfort

A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.

Forget the maintenance

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

Rewards for renewing

Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.

02

Allentown, PA Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Allentown, PA: 5°F for heating, 92°F for cooling, and 72°F indoors. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.

Step 1 of 3

Home location & size

Your home’s location and size directly impact heating needs.

Step 2 of 3

Home attributes

Step 3 of 3

Additional details

Description of what this means for context.

Estimated Heating Needs

Your home’s location falls within the a climate zone with the average extreme winter falling between 10° – 15° F.

Home Details

Get Started

Recommended equipment capacity

60,000 BTU

5 Tons

Calculated Cooling Mode

102,000 BTU

8.5 Tons

03

Buy it or finance it. Your comfort, your call

There's no wrong way to get cozy. Here's how the options stack up, so you can choose what works best for you.

Cash

Loan

Payment schedule $0 upfront, then monthly subscription Full price upfront $0 upfront, then monthly payment
Term length 10 or 12 years None Variable
End of term options Flexible with 25% renewal term credits to new system No credits to new system No credits to new system
Maintenance included
Eligible for incentives
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Allentown, PA Heat Pump Rebates & Incentives

Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Allentown homeowners.

PPL Electric Heat Pump Rebate

Up to $450

PPL Electric Utilities offers rebates for air source heat pumps and ductless mini-split heat pumps to qualifying residential customers. Rebates are available through June 15, 2026.

Eligibility: Available to residential customers of PPL Electric Utilities with an active meter in their service area. Requests must be submitted within 90 days of installation or June 15, 2026, whichever is earlier. ENERGY STAR certified equipment required.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Allentown homeowners have access to PPL Electric's heat pump rebate program offering up to $450 for qualifying air source and ductless mini-split heat pump installations through June 2026. Combined with the federal IRA tax credit of up to $2,000 available through 2032, homeowners can significantly reduce the cost of heat pump upgrades. Palmetto's Comfort Plan lease offers an alternative path to energy efficiency with $0 upfront cost, allowing homeowners to benefit from heat pump technology while capturing available rebates and tax credits.

Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.

04

Climate Zones

Allentown sits in IECC Climate Zone 7, which means cold winters (design temps around 5°F) and warm summers (up to 92°F). This range matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we understand Allentown's climate and can help you choose a system sized right for the Lehigh Valley. Explore other climate zones below or enter your ZIP code to confirm yours.

US Climate Zone Map
Your location

Climate Zone 1

Climate zone 1 is not typically seen within the United States outside of Alaska. It represents the coldest climates on the planet.

Climate Zone 1A

Avg. extreme winters: -60° to -55° F

Climate Zone 1B

Avg. extreme winters: -55° to -50° F

05

Allentown Electricity Prices

Understanding electricity costs in Allentown helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.

Pennsylvania residents have seen electricity costs jump from 13.8 cents per kWh in 2021 to 17.8 cents in 2024—a 29% increase that outpaces the national average growth.

Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same comfort level.

As electricity costs fluctuate, efficiency becomes increasingly valuable. A heat pump's lower energy consumption means your monthly bills stay more manageable, protecting your budget for years to come.

Price of Energy: Pennsylvania vs National Average

10¢
20¢
30¢
13.7¢
13.8¢
15.0¢
15.9¢
16.0¢
18.1¢
16.5¢
17.8¢
2021
2022
2023
2024
US Average
Pennsylvania

Allentown Area Utility Providers

Allentown residents receive electricity from two main providers: Met-Ed and PPL Electric. According to 2023 data, Met-Ed charged 17.2¢ per kWh while PPL charged 19.5¢ per kWh—both hovering near Pennsylvania's state average of 18.10¢.

These rates reflect Pennsylvania's energy landscape, where electricity costs slightly exceed the 2023 national average of 16.0¢ per kWh. Regional factors like transmission infrastructure investments and fuel costs contribute to these prices, though they remain relatively moderate compared to other northeastern states.

Understanding your electricity rates matters when considering home heating options. Heat pumps use electricity but operate so efficiently—moving heat rather than generating it—that they typically reduce total energy spending even at higher electricity rates, especially when replacing oil or propane systems.

Allentown Utilities Electricity Rates

Met-Ed
17.20¢
+7%
PPL
19.50¢
+22%
PA Average
18.10¢
+13%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

Let our smart tools do the heavy lifting.

Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.

  • Rewards for smarter energy usage
  • Energy insights & Dashboard
  • Personalized Savings Tools
  • Whole Home Energy Management
  • Support Whenever You Need It
Download the App
08

Repair versus replace

When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.

$5,000
Recommended repair threshold

A heat pump's lifetime is impacted by a number of factors including environment, use and the quality of the unit. It's important to choose the right unit for your climate zone and home's unique attributes.

When you are in need of repair, we recommend choosing a service provider that is an expert in the heat pump brand you have installed, and checking online reviews to ensure you are investing in the right level of service.

Potential repair Cost range Description
Capacitor Replacement $150 - $400 Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors.
Refrigerant Recharge $250 - $750 Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level.
Reversing Valve Replacement $450 - $900 Required when the unit cannot switch between heating and cooling modes. The reversing valve directs refrigerant flow and is unique to heat pump systems.
Compressor Replacement $1,500 - $3,000 Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils.
Evaporator/Condenser Coil Replacement $1,200 - $2,800 Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss.
Control Board Replacement $500 - $1,200 Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging.
Full System Replacement $4,500 - $8,000+ When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Allentown. Modern heat pumps work efficiently even in Climate Zone 7, where winter temperatures can drop to 5°F. They provide both heating and cooling, replacing your furnace and air conditioner with one system that typically uses less energy than traditional heating methods, helping you save on Pennsylvania's 17.8¢ per kWh electricity costs.

Allentown homeowners can choose between Palmetto's Comfort Plan with $0 upfront and included maintenance, or direct purchase to own the equipment and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both options deliver year-round comfort while reducing your energy consumption compared to conventional heating systems.

Heat pumps perform very efficiently in Allentown's climate, even during cold winters. Modern cold-climate heat pumps maintain strong efficiency down to 5°F—Allentown's design heating temperature—delivering 2-3 times more heat energy than the electricity they consume. This efficiency translates to lower heating costs compared to traditional systems, especially with Pennsylvania's electricity rate of 17.8¢ per kWh.

In Climate Zone 7, heat pumps also excel at cooling during summer months when temperatures reach 92°F. Year-round efficiency means consistent comfort and energy savings in both seasons. Palmetto offers flexible options to help Allentown homeowners access this efficient technology: our Comfort Plan with $0 upfront cost and included maintenance, or direct purchase with potential federal tax credits up to $2,000.

The choice between leasing and buying a heat pump in Allentown depends on your financial situation and preferences. Buying means paying upfront but owning the equipment outright, plus you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance, repairs, and warranty coverage in your monthly payment.

For Allentown's Climate Zone 7 conditions—with winter temperatures dropping to 5°F—ongoing maintenance is essential for efficiency. With Pennsylvania's electricity rate at 17.8¢ per kWh, a well-maintained heat pump keeps energy costs predictable. Leasing removes maintenance responsibilities, while buying offers long-term ownership and immediate tax benefits. Consider your budget, how long you'll stay in your home, and whether you prefer predictable monthly payments or upfront savings.

Heat pump costs in Allentown typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Given Allentown's Climate Zone 7 conditions—with winter temperatures reaching 5°F—you'll want a system sized appropriately for both heating and cooling performance.

Palmetto offers two payment options to fit your budget: our Comfort Plan requires $0 upfront with a predictable monthly payment that includes all maintenance and repairs, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates.

Yes, heat pumps are typically worth it financially for Allentown homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, even with Pennsylvania's electricity rate of 17.8¢ per kWh. In Climate Zone 7, where Allentown experiences cold winters and warm summers, heat pumps provide year-round efficiency that translates to meaningful savings on your energy bills.

The financial picture becomes even more attractive with flexible payment options. If you purchase directly, you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates. Alternatively, Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, eliminating unexpected costs while delivering immediate savings. Most Allentown homeowners see their heat pump investment pay for itself within several years.

In Allentown, heat pumps are installed by licensed HVAC contractors who are certified to work with heat pump systems suited for Climate Zone 7 conditions. Palmetto partners with qualified local installers who understand the specific requirements of heating and cooling in Pennsylvania, where winter temperatures can drop to 5°F and summers reach 92°F.

Palmetto offers two installation options for Allentown homeowners: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both options include professional installation by experienced technicians who ensure your system is properly sized and configured for your home's needs.

HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes any system that controls your home's temperature and air quality. A heat pump is actually a type of HVAC system that both heats and cools your home by transferring heat rather than generating it, making it more energy-efficient than traditional furnaces and air conditioners.

In Allentown's Climate Zone 7, where winter temperatures can drop to 5°F, modern heat pumps are designed to handle both the heating and cooling demands your home faces year-round. With Pennsylvania's electricity rate at 17.8¢ per kWh, heat pumps can provide significant energy savings compared to older HVAC systems, and Palmetto offers flexible options including our Comfort Plan with zero upfront cost or direct purchase with potential tax credits up to $2,000.