What does your oil system do besides heat?
Pacific Northwest National Laboratory (PNNL) notes that some boilers also heat the household's drinking and bathing water through an indirect tank. If yours does, pulling the boiler means you need a new water heater, and that should be a line on the quote, not a surprise. Our guide to choosing a tank or tankless replacement covers that decision.
If you have radiators or baseboard, ask how heat will reach each room after the switch: new ducts, wall-mounted ductless units, or keeping the boiler for part of the house. Get the room-by-room plan in writing.
Will it keep up in a Philadelphia cold snap?
Ask for the specific outdoor and indoor model pair and its heating output at 5°F, not just the nameplate rating. PNNL's cold-climate guide lists the ENERGY STAR cold-climate criteria: at 5°F the system must keep at least 70% of its 47°F capacity and run at a coefficient of performance of 1.75 or better. Ask whether the model you're quoted meets it.
Ask for the balance point, the outdoor temperature where the heat pump stops carrying the house alone, and what covers the gap. PNNL calls electric resistance backup inefficient and typically expensive. Some households keep the oil system as backup; if so, ask how the thermostat decides when to switch. Our guide on what a heat pump quote should explain about sizing walks through the load calculation each bid should include.
Panel, permits and installation
A heat pump plus any electric backup can be a big new load. Ask whether the bid includes a load check on your panel and any service upgrade, priced separately from the equipment. See when an older panel needs evaluation.
In Philadelphia, installing heating or air conditioning needs a Mechanical Permit from L&I and, because the equipment runs on electricity, a separate Electrical Permit. L&I notes that boiler installations are regulated by the Pennsylvania Department of Labor and Industry. Our Philadelphia HVAC permit guide lists the fees and paperwork. In Bucks and Montgomery counties, ask the installer which permits your township requires.
For the install itself, the Department of Energy points to the ACCA quality installation standard and says oversizing, wrong refrigerant charge and leaky ducts cut efficiency and comfort. Ask whether the price includes checking the charge, measuring airflow and sealing ducts.
What happens to the oil tank?
If oil is going away completely, the tank has to be dealt with. In Philadelphia, removing a tank needs L&I's building permit for hazardous material tanks, and the application has to come from a licensed contractor. L&I lists a $25 filing fee for one- and two-family homes, $158 per tank, and $3 City and $4.50 state surcharges. Removing an underground tank within five feet of a neighbor's building also needs a report from a Pennsylvania-licensed engineer. After the inspections pass, L&I issues a Certificate of Approval; keep it for when you sell.
Ask whether tank removal is in the heat pump bid or a separate job, and settle what happens to any oil left in it. If you're keeping oil as backup, the tank stays and you'll still need deliveries.
Which incentives are actually available in 2026?
- Federal tax credit: the IRS says the energy efficient home improvement credit, up to $2,000 for heat pumps, covers improvements made through December 31, 2025. A 2026 install doesn't qualify.
- Pennsylvania rebates: the state's Penn Energy Savers program isn't open. As of September 2026, DEP said it was waiting for final federal approval, and the program site says spring 2027.
- PECO: electric customers can get $200 for an ENERGY STAR air-source heat pump system rated 15.2 to 17.0 SEER2, or $300 at 17.1 SEER2 or higher; both need at least 11.0 EER2 and 7.8 HSPF2. The equipment has to replace an existing heating or cooling system, and the application is due within 90 days of purchase with a paid receipt. PECO also offers $350 for a heat pump water heater.
PECO rates the matched system by its AHRI certificate, so ask each bidder for the AHRI number. If a quote subtracts a rebate or tax credit from the price, ask which program it is and confirm it's open before you sign.