Replacing Your Heating System Before 2026

The fall has arrived, and the weather is already starting to cool down. Right now is one of the most popular times of the year to replace your heating system. This year, there are a few financial incentives to having your heating system replaced before the new year, most centered around tax credits and rebates. 

John Cipollone Inc. has been serving the area since 1953. From Radnor and Rosemont to Havertown and Bala Cynwyd, we have been providing heating and cooling services for homes and businesses in the community. We specialize in upgrading and replacing heating systems, which what this article focuses on. We want to let you know how to save money, and why you should replace your heating system before 2026, if possible. 

If you’d like to speak to one of our experts about heating and cooling for your home or business, give us a call at (610) 446-7877, or contact us online. We can provide you with routine heating service, or give you a free estimate for a new heating system that fits your needs. 

Incentives For Replacing Your System Before 2026

For now, the weather is mild, but soon enough, it’s going to get cold, and your heating system is going to be needed. Here are some significant savings opportunities available that can help you save money on the initial cost of installation. Along with that, there are ways to save on your energy bills in this process, and improve your home comfort as well! 

Tax Credits Ending In 2026 

As a part of the tax policy that was recently passed, tax credits brought to you by the Inflation Reduction Act are set to end in 2026. Luckily for homeowners who want to upgrade their heating and cooling equipment, these tax credits are still available through the end of the year! 

These tax credits are for energy efficient HVAC equipment. The amount of your tax credit depends on the type of HVAC equipment you install, the level of efficiency, and the cost of the installation. Some of these tax credits include: 

• Heat Pumps: Tax credit up to $2000
• Furnaces: Tax credit up to $600
• Air Conditioners: Tax credit up to $600

If you know it’s time to replace the system, you can qualify for these savings, but only if the system is fully installed and operational by December 31, 2025. Our experts can help you choose the right system that fits your home and qualifies for a tax credit! 

Fall Rebates That Expire Before 2026

Another way for homeowners to save when they install new HVAC equipment is through rebates. These are provided by government agencies, HVAC manufacturers, and energy providers. In an effort to reduce the amount of energy we consume, and reduce the cost when you install a new HVAC system, these rebates are designed to help homeowners deal with the cost of a new HVAC system. 

Another reason you want to act sooner if you’d like to save money when replacing your system, is these rebates will be expiring! We have a few different rebates available now, but they aren’t going to last all winter. 

Right now, here are some of our most attractive rebates: 

Carrier Cool Cash

Rebates up to $2,300 on qualifying Carrier Systems between September 8, 2025, and November 29, 2025, including furnaces, heat pumps, and central air conditioning.

Rebates range from $200- $2,300

PECO

Peco is offering rebates on ENERGY STAR-certified equipment, including:

• Air Source Heat Pump ($200 – $300)
• Central Air Conditioning Systems ($150 – $200)
• Ductless Mini Split Heat Pump Systems ($150 – $300)
• Room Air Conditioner ($10)
• Air Source Heat Pump Maintenance ($25)
• ECM Fan Motor ($50)
• Rebates range from $10 – $300

The Electrical Association of Philadelphia (EAP)

August 5, 2025 – December 5, 2025– Rebates between $150 – $1400 are available for new qualified energy-efficient equipment.

This qualifies for Central Air Conditioning Systems (Up to $1,200), Heat Pumps (Up to $1,400), and Ductless Mini-Splits ($100 – $250 per mini split).

For more information about the program click here.

Saving On Energy Costs

Outside of the opportunities to save on the initial installation, saving on energy costs also comes into play when you decide to upgrade your HVAC system. If you have an older heating system, 

The chances are it’s using more energy than necessary. New, energy-efficient heat pumps, furnaces, and boilers are going to consume less energy than older ones, and therefore bring your energy costs down. 

We’ve had homeowners come back to us and let us know that after they made an upgrade to a new system, they’ve seen significant savings. One homeowner told us they cut their heating bill down by 40%! Over the span of a winter, this could equal hundreds, maybe even thousands of dollars. 

Most people think that by delaying the installation of a new system, they are saving money. That depends on how you look at it. If your system has to be replaced, it’s usually more cost-effective to do it as soon as possible. If a homeowner decides to put off the upgrade, it could result in: 

• Lower efficiency, leading to higher energy costs 
• More chance of a breakdown and repair being needed
• The cost of HVAC systems rises over years, making the eventual replacement cost more expensive 

You may think you are saving money, but usually it ends up costing a homeowner more in the long run due to higher energy bills and the constant rise in cost of HVAC prices. 

Better Comfort

Sometimes the costs of a new system distract us from the main reason you want a new HVAC system, the comfort! With a new heating system, you’re going to enter the winter with an energy-efficient, brand new solution to keeping your space comfortable. It’s so common to hear a homeowner talk about a particular room or space that their old HVAC system never seemed to keep comfortable. Instead of replacing the system they would just ignore the problem or use a space heater to comfort the spot. 

With a new heating system, there’s no need for a space heater, or to have any room be cooler than it should. 

Installing A New Heating System In Radnor, PA

Now that you know a few reasons why it’s a good idea to replace your heating system before the new year, give us a call to schedule a free consultation. Whether you are in Radnor, Havertown, or any of the surrounding areas, John Cipollone is happy to help. You can book an appointment online, or call us at (610) 446-7877. Stay warm, and we hope to hear from you soon!