The $11m program will provide rebates of between $100 and $500 on the purchase of new, Energy Star-rated non-electric residential hot water heaters, furnaces and boilers.

Governor Rendell added that the rebate program could benefit 33,000 Pennsylvanians and is expected to create 120 jobs by boosting demand for heating equipment and related installation work. It could also save more than 257 trillion British thermal units of energy.

The Department of Environmental Protection had selected Resource Solutions to manage the new rebate program along with its partners, Resources Development and Management of Pittsburgh and the Electric Gas Industries Association.

The rebates complement existing or planned programs by Pennsylvania’s electric utilities that are required under Act 129, which the governor signed in 2008.

Mr Rendell, said: “Last fall, the US Department of Energy asked all states to develop rebate programs for items that would help residents achieve the greatest energy savings.

“Because the average Pennsylvania household spends 44% of its energy budget on heating and cooling, offering these rebates will provide a real and lasting benefit for consumers.”