Electricity Laws and Incentives in Pennsylvania
The list below contains summaries of all Pennsylvania laws and incentives related to electricity.
State Incentives
Alternative Fuel Vehicle (AFV) Rebate
The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $50,000. Rebates are available in the following amounts:
| Vehicle Type | Rebate Amount |
|---|---|
| EV (new or pre-owned) | $2,000 |
| PHEV (new or pre-owned) | $1,500 |
| CNG, Propane, and Electric Motorcycle (new or pre-owned) | $500 |
An additional rebate of $1,000 is available for all applicants that meet the low-income requirement, as defined by the U.S. Department of Health and Human Services. Applications much be received within six months of vehicle purchase. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the DEP AFV Rebates website.
(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)
Point of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
Alternative Fuels Incentive Grant (AFIG) Program
The AFIG Program provides financial assistance for innovative, advanced fuel and vehicle technology projects. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Projects must support:
- Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels;
- Incremental cost expenses to purchase alternative fuel vehicles;
- The cost to purchase and install the necessary fleet- or home-refueling equipment for alternative fuel vehicles; or,
- The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)
Points of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov
Diesel Emission Reduction Grants
The Pennsylvania Department of Environmental Protection (DEP) administers the Pennsylvania State Clean Diesel Grant Program for diesel emission reduction projects. Projects are funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust and the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program. For more information, including funding availability, see the DEP Driving PA Forward website.
Heavy-Duty Emission Reduction Grants
The Pennsylvania Department of Environmental Protection (DEP) offers grants for the repower or replacement of ferries, tugboats, and freight switcher locomotives with any new U.S. Environmental Protection Agency or California Air and Resource Board-certified diesel, alternative fuel, or all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant
The Pennsylvania Department of Environmental Protection (DEP) offers grants for the replacement of Class 4-8 local freight trucks with new zero-emission trucks through the MHD ZEV Fleet Pilot Grant Program. Eligible zero-emission technologies include all-electric and hydrogen fuel cell electric vehicles. Grants are available in the following amounts:
| Applicant Type | Maximum Grant Funding Amount |
|---|---|
| Non-government entity | Up to 75% of project costs |
| Government entity | Up to 90% of project costs |
| Financially distressed municipality | Up to 100% of project costs |
Eligible applicants include businesses, non-profits, government entities, tribal entities, planning organizations, and air quality and transportation organizations. Priority will be given to projects located in environmental justice communities. This program is funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, see the DEP Driving Pennsylvania Forward website.
Off-Road Electric Equipment Grants
The Pennsylvania Department of Environmental Protection (DEP) offers grants for the replacement of airport ground support equipment, forklifts, and port cargo handling equipment with an all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.
Pennsylvania's National Electric Vehicle Infrastructure (NEVI) Planning
The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Pennsylvania Department of Transportation (PennDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.
For more information about Pennsylvania’s NEVI planning process, see the PennDOT Plan website. To review Pennsylvania’s NEVI plan, see the Joint Office State Plans for EV Charging website.
Laws and Regulations
Alternative Fuels Tax
Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply.
(Reference Title 75 Pennsylvania Statutes, Part VI, Chapter 90, Section 9004)
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.
For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.
Neighborhood Electric Vehicle (NEV) Definition
A NEV is defined as a four-wheeled electric vehicle that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph. All vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. Drivers must maintain a defined level of insurance coverage for all registered vehicles.
Public Utility Definition
A person, corporation, or entity that owns or operates electric vehicle (EV) charging station that is open to the public is not defined as a public utility. Each electric distribution company must address third-party owned and operated EV charging stations in its tariff.
(Reference Title 52 Pennsylvania Code 69.101 and 69.3501)
State Electric Vehicle (EV) Acquisition Requirements
Pennsylvania state agencies must replace 25% of their passenger car fleets with EVs by 2025 and evaluate fleet utilization for vehicle miles traveled reductions. Agencies must collectively reduce all energy consumption by 3% annually, with a 21% reduction from a 2017 baseline by 2025. To meet these goals, the Governor’s Green Government Council was reestablished to work with state agencies to oversee the development and implementation of procedures to reduce greenhouse gas emissions and energy usage.
(Reference Executive Order 2019-01, 2019)
Utility / Private Incentives
Commercial Electric Vehicle (EV) Charging Station Rebate - PECO
PECO offers rebates of up to $2,000 to commercial customers for the purchase and installation of Level 2 EV charging stations. Projects located within environmental justice communities may receive a rebate of up to $3,000. Rebates are available on a first-come, first-served basis, and applicants may receive a maximum of 20 rebates per non-residential account. Recipients must share EV charging station utilization data upon request for two years after project completion. For more information, see the PECO EVsmart website.
Community Charging Assessment and Rebate – Duquesne Light Company (DLC)
DLC offers a rebate to multi-family dwellings, municipal governments, non-profit organizations, and businesses of up to $5,000 for the purchase of each dual-port Level 2 charging station. Eligible projects must be located within an environmental justice community. Eligible EV charging stations must also be networked, and participants must share charging station utilization data with DLC. For more information, including eligible equipment, see the DLC Community Charging website.
Direct Current Fast Charging (DCFC) Station Incentive – PECO
PECO offers commercial customers a 50% discount on electricity distribution charges for DCFC stations enrolled in the Pilot Discount for Fast Charging Infrastructure Program. Participation in the program is available on a first-come, first-served basis. For more information, see the PECO EVsmart website.
Electric Vehicle (EV) Credit – Duquesne Light Company (DLC)
DLC offers a $50 gift card or direct deposit to residential customers who purchase or lease an EV. For more information, including how to apply, see the DLC EVs website.
Electric Vehicle (EV) Infrastructure Support
Pennsylvania utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.
Electric Vehicle (EV) Rebate - PECO
PECO provides rebates of $50 to residential customers who purchase a new, qualified EV. For more information, see the PECO EVsmart website.
Fleet Electric Vehicle (EV) Charging Station Rebate – Duquesne Light Company (DLC)
DLC offers a rebate to commercial, municipal, and non-profit fleets for up to 50% of the cost to purchase eligible Level 2 or direct current fast charging (DCFC) stations. Eligible EV charging stations must be networked, and participants must share charging station utilization data with DLC. For more information, including a list of eligible equipment, see the DLC Fleet Electrification website.
Fleet Electrification Assessment – Duquesne Light Company (DLC)
DLC offers advisory services to fleets to analyze fleet electrification opportunities. Eligible applicants must be DLC customers and include any commercial, municipal, or non-profit organization with light-, medium-, or heavy-duty fleet vehicles. For more information, see the DLC Fleet Electrification website.
Workplace Electric Vehicle (EV) Time-Of-Use (TOU) Rate – Duquesne Light Company (DLC)
DLC offers a TOU rate to small- and medium-sized businesses that have an EV charging station at their location. Eligible businesses may not exceed a monthly metered demand of 200 megawatts. For more information, including eligibility requirements and how to enroll, see the DLC Business EV Rate website.
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.