Erie, PA Heat Pump Leasing & Installation
In this guide
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
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
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
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
Erie, 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 Erie, PA: 5°F for heating and 92°F for cooling, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, connect with our 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
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.
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Cash |
Loan |
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|---|---|---|---|
| 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 |
Cash
Loan
Local Incentives
Erie, 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 Erie homeowners.
FirstEnergy Air Source Heat Pump
Up to $500Get up to $500 rebate on an ENERGY STAR certified air source heat pump. Available to FirstEnergy residential customers (including Penelec in Erie) through May 31, 2026.
FirstEnergy Heat Pump Water Heater
Up to $500Get a $500 rebate on an ENERGY STAR certified hot water heater. Available to FirstEnergy residential customers through May 31, 2026.
Federal IRA Tax Credit
Up to $2,000The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Erie homeowners have access to utility rebates through FirstEnergy's Penelec service territory, offering up to $500 for air source heat pumps and heat pump water heaters through May 2026. Combined with the federal IRA tax credit of up to $2,000 available through 2032, homeowners can stack these incentives to reduce their heat pump installation costs. Palmetto can help you navigate these programs and maximize your available rebates.
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
Erie sits in IECC Climate Zone 7, which means cold winters with design temperatures around 5°F and warm summers reaching 92°F. This climate requires a heat pump that can handle serious heating demands while still cooling efficiently when needed. At Palmetto, we understand Erie's weather patterns and can help you choose a system sized and rated for Zone 7 conditions. Explore the climate zone details below or enter your ZIP code to confirm your specific zone.
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
Erie Electricity Prices
Understanding Erie's electricity costs is crucial when considering your home heating and cooling options, especially as rates continue to climb.
Pennsylvania's electricity rates have jumped significantly in recent years—from 13.8 cents per kWh in 2021 to 17.8 cents in 2024. That's nearly a 29% increase, outpacing the national average growth.
Heat pumps offer a practical response to rising electricity costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use less electricity to deliver the same heating and cooling comfort to your Erie home.
As electricity rates trend upward, the efficiency advantage of heat pumps becomes even more valuable. Over the system's lifetime, you'll consume significantly less energy, helping insulate your household budget from future rate increases.
Price of Energy: Pennsylvania vs National Average
Erie Area Utility Providers
Erie residents receive electricity primarily from Penelec (Pennsylvania Electric Company). Based on 2023 data, Penelec's average rate was 19.1¢ per kWh—slightly above Pennsylvania's state average of 18.1¢ and the national average of 16.0¢.
Pennsylvania's electricity costs tend to run higher than the national average due to the state's energy infrastructure, transmission costs, and regional market factors. Penelec's rates reflect these typical Pennsylvania pricing patterns, staying close to the state average.
While Erie's electricity costs sit above the national average, heat pumps' exceptional efficiency can still lower your total energy spending. Heat pumps move heat rather than generate it, using significantly less energy than traditional heating systems—often offsetting higher electricity rates with reduced overall consumption.
Erie Utilities Electricity Rates
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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.
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. |
Frequently Asked Questions
Yes, heat pumps make sense in Erie, even in Climate Zone 7 where winter temperatures can drop to 5°F. Modern cold-climate heat pumps are engineered to work efficiently in these conditions, often delivering 2-3 times more heating energy than the electricity they consume at Pennsylvania's current rate of 17.8¢ per kWh.
Erie homeowners can access heat pump technology through Palmetto's Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase to claim federal tax credits up to $2,000. Both options provide year-round heating and cooling while typically reducing energy costs compared to traditional heating systems like oil or propane furnaces.
Heat pumps perform well in Erie's cold climate, even when temperatures drop to the design heating temperature of 5°F. Modern cold-climate heat pumps can operate efficiently down to -13°F or lower, delivering 2-3 times more heating energy than they consume in electricity. This efficiency translates to meaningful savings on your heating bills compared to traditional systems.
With Pennsylvania's electricity rate at 17.8¢ per kWh, Erie homeowners typically see lower operating costs than oil or propane heating. Palmetto makes heat pump installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase where you may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
The choice between leasing and buying a heat pump in Erie depends on your financial priorities and preferences. Palmetto's Comfort Plan offers $0 upfront with predictable monthly payments and all maintenance included—ideal if you want immediate comfort without a large investment. Direct purchase means you own the equipment outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Erie's cold winters (Climate Zone 7 with design temperatures reaching 5°F) mean your heat pump will work hard during heating season. With Pennsylvania's electricity rate at 17.8¢ per kWh, both options deliver energy savings compared to traditional heating. Consider whether you prefer the security of included maintenance and repairs, or the long-term ownership benefits and upfront incentives that come with purchasing.
Heat pump costs in Erie typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's heating capacity needed for Climate Zone 7. Erie's cold winters (with design temperatures around 5°F) often require cold-climate models, which can affect the overall investment.
Palmetto offers two payment options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, 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. Both options help Erie homeowners transition to efficient heating and cooling.
Yes, heat pumps are typically worth it financially in Erie, PA. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, which translates to meaningful savings given Pennsylvania's electricity rate of 17.8¢ per kWh. The payback period varies based on your current system and home efficiency.
Palmetto makes the financial decision easier with two options: our Comfort Plan requires $0 upfront with predictable monthly payments and included maintenance, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act. Both paths offer long-term savings on energy bills in Erie's climate.
Heat pumps in Erie are installed by licensed HVAC contractors who specialize in heating and cooling systems suitable for Climate Zone 7 conditions. Palmetto partners with certified local installers who understand Erie's winter design temperatures around 5°F and can properly size and install systems for Pennsylvania's climate.
Palmetto offers two installation options for Erie homeowners: a Comfort Plan with $0 upfront cost that includes all maintenance and repairs, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both options connect you with experienced professionals who ensure your heat pump operates efficiently in Erie's weather conditions.
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. A heat pump is actually a specific type of HVAC system that both heats and cools by transferring heat rather than generating it through combustion, making it highly efficient even in Erie's cold winters.
Unlike traditional HVAC systems that use separate furnaces and air conditioners, a heat pump handles both jobs with one unit. In Erie's Climate Zone 7, modern heat pumps work effectively down to 5°F and below, operating on Pennsylvania's 17.8¢ per kWh electricity rate. Palmetto offers heat pumps through a Comfort Plan with no upfront cost or direct purchase with potential federal tax credits up to $2,000.