What's New in PA Utility Rebate Programs: 2026 Program Year Update

Pennsylvania's utility-run energy efficiency programs just turned the page on a new chapter. The prior Act 129 program cycle officially closed on May 31, 2026, and the next generation of commercial and industrial (C&I) rebate programs has been rolling out utility by utility ever since. The new programs will be running under another 5 year term. The good news for facility managers, contractors, and energy project developers: most of the new programs are now published, and while there are meaningful updates worth knowing about, none of them represent a dramatic departure from what you're used to.

Here's a rundown of what's changed — and what hasn't — across Pennsylvania's major electric utilities.

Duquesne Light – Watt Choices

Duquesne Light's new Business Solutions Rebate Program (branded Watt Choices) is live, with incentive structures that will feel familiar to anyone who worked with the previous cycle, along with a few notable tweaks:

• Custom incentive rate increased from $0.08/kWh to $0.09/kWh — a modest bump that's good news for larger, facility-specific projects.
• Some prescriptive rates went up, others came down, so it's worth checking the rebate catalog measure-by-measure rather than assuming a blanket increase or decrease.
• LED rebate tiers are now determined by lumens rather than wattage — a shift that aligns incentive structure more closely with actual light output rather than power draw.
• No midstream (instant discount) option is currently available. It's not clear yet whether Duquesne plans to reintroduce one later in the program cycle.

Businesses in Duquesne Light territory should still qualify by size (small business vs. large business, split at 300 kW of maximum annual demand), and can find full details on the Business Solutions page.

FirstEnergy Pennsylvania – Energy Efficiency Programs

FirstEnergy's Pennsylvania utilities (Met-Ed, Penelec, Penn Power, and West Penn Power) have restructured how lighting incentives are calculated. The prescriptive lighting incentive is now a flat $0.01/kWh plus $100 per peak kW, replacing the previous mix of per-unit and per-kWh rates. Other prescriptive and custom categories (non-lighting, solar/CHP, agriculture) are incentivized at $0.04/kWh plus $250 per peak kW.

One thing to flag for anyone doing detailed project planning: the prescriptive and custom incentive documents don't currently spell out equipment requirements — wattage thresholds, efficacy minimums, and similar qualifying specs aren't listed the way they were previously. Contractors and applicants may want to confirm equipment eligibility directly with the program before finalizing a project scope. Instant discounts also remain available through participating distributors.

PECO – Smart Ideas for Your Business

PECO's new program keeps the same general shape — prescriptive incentives, custom incentives, and instant discounts — but has shifted LED lighting incentives from a per-unit basis to a per-kWh basis, bringing lighting in line with how many other measures are already incentivized.

The status of midstream/instant discount incentives is a bit less clear right now. PECO maintains a dedicated instant discounts program page, but specific rates and eligible equipment aren't fully spelled out yet. Large business customers (Rate HT, PD, and EP) can still receive incentives covering up to 50% of project costs, capped at $500,000 per project and $1M per account annually — consistent with the structure under the prior program.

PPL Electric Utilities – Business Rebate Program

Of all five utilities, PPL's new program is the most consistent with its predecessor. Lighting incentives remain kWh-based, and the overall program structure hasn't changed significantly. If you're a frequent PPL program participant, this is the one that should require the least adjustment. Details are available on the incentives overview and lighting-specific pages.

The Big Picture

If there's one takeaway from this round of program launches, it's this: Pennsylvania's utilities have refined their rebate programs rather than reinvented them. Incentive rates have shifted — up in some cases, down in others — and a few utilities have changed how certain measures (especially lighting) are calculated, moving toward kWh- or lumen-based structures instead of flat per-unit rates. But the fundamental program types — prescriptive, custom, and instant/midstream offerings — remain the backbone of every utility's approach.

A few open questions are still worth watching:

• Whether Duquesne Light will reintroduce a midstream/instant discount option later in the cycle.
• How FirstEnergy will formalize equipment eligibility requirements for its prescriptive and custom incentives.
• What specific rates and equipment PECO's instant discounts program will ultimately support.

If you have projects that were in progress before the May 31 cutoff, or new projects you're planning under the current program year, now's a good time to revisit your utility's updated documentation to make sure your project specs and paperwork line up with the new rules.

Have questions about how these changes affect a specific project? Reach out — we're happy to help you navigate the new program year.