NYSERDA Heat Pump Rebate
In New York, a NYSERDA heat pump rebate cuts your installation cost, and your utility sets the exact amounts. For equipment you place in service after December 31, 2025, the federal credit is zero.
Check what your address gets in New York
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Who sends your electric bill?
What are you putting in?
- Rebate for heat pumps, any income level
- As much as $12,000 $10,000; $12,000 where the home lies in a Disadvantaged Community
- If you meet the income rules
- Up to $14,000 Capped at $12,000 upstate and $14,000 downstate per project
- Water heater powered by a heat pump
- $1,500 As an instant rebate on purchases Sept 1-Nov 30, 2026, or $1,300 at other times
- Federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Apply and check the current rules on the official page: Con Edison NYS Clean Heat heat pump incentives
NYSERDA Heat Pump Rebate Amounts and Rules
Your electric utility and system type set the state rebate tiers, and federal tax credits ended after 2025.
| What you install | Rebate | Who | Conditions |
|---|---|---|---|
| Single-family home with an air-source heat pump, and the old heating system removed or disabled | $10,000 (Weatherized Tier) or $7,000 (standard rate) | Any income | The existing heating system must be fully replaced; the Weatherized Tier calls for a properly insulated and air-sealed home |
| Same, single-family home in a Disadvantaged Community | $11,000 (Weatherized Tier) or $8,000 (standard rate) | Any income | Homes in a NYS-designated Disadvantaged Community get an enhanced rate (based on location, not income); the cap is 85% of project cost |
| Air-source heat pump, old system removed, apartment | The Weatherized Tier pays $5,000 and the standard rate $3,500; Disadvantaged Community homes get $5,500 / $4,000 | Any income | Per apartment |
| Geothermal (ground-source) retrofit, whole building | $30,000 for the Weatherized Tier, $25,000 standard; Disadvantaged Community projects see $40,000 / $35,000 | Any income | This rate covers the whole 1-4 unit building and every dwelling unit inside; $15,000 for new construction ($20,000 in a Disadvantaged Community) |
| ENERGY STAR heat pump water heater, instant rebate | A $1,500 instant rebate when you purchase between Sept 1-Nov 30, 2026; at other times, $1,300 | Any income | Tanks up to 120 gallons; redeem the coupon in participating Lowe's and Home Depot stores, or through a contractor who buys via a participating distributor |
| Cold-climate ASHP full load with decommissioning, single-family | $10,000 ($12,000 in a Disadvantaged Community) | Any income | The old heating source must be fully removed from service; $5,000 applies to apartments and homes under 1,000 sq ft ($6,000 DAC) |
| Single-family, cold-climate ASHP full load heating, with the old system kept | $6,000 ($8,000 in a Disadvantaged Community) | Any income | Apartments/homes <1,000 sq ft $3,000 ($4,000 DAC) |
| Ground-source heat pump, retrofit, single-family | $20,000 ($25,000 in a Disadvantaged Community) | Any income | New construction $14,000 ($19,000 DAC) |
| Heat pump water heater | Take $1,250 off instantly in participating Lowe's/Home Depot stores, or claim a mail-in/contractor rebate | Any income | National Grid electric customers only |
| Air-source heat pump | Up to $10,000 in rebates | Any income | Under the Manual v2 table: with decommissioning, full load pays $10,000 for single-family ($11,000 NYSEG DAC; apartments $5,000 to $6,000); with no decommissioning, $6,000 ($7,000 NYSEG DAC) |
| Ground-source heat pump | Up to $18,000 in rebates | Any income | Under Manual v2, a retrofit pays $17,000 for single-family homes and $18,000 in a DAC |
| Heat pump water heater | As much as $1,250 off instantly in Lowe's/Home Depot stores, or $1,250 by mail | Any income | |
| Air-source heat pump at full load, single family over 1,000 sq ft, with the fossil source gone | $7,000, rising to $12,000 when qualified weatherization work is finished too | Any income | Oil tank removal, or removal of the fossil fuel system that heated the home before |
| Single family >1,000 sq ft with a full-load air-source heat pump, and the fossil source kept | $4,000 | Any income | |
| Air-source heat pump at full load, in an apartment or a home under 1,000 sq ft | $3,500 with the fossil source taken out ($6,000 if weatherized); keeping it means $2,000 | Any income | |
| Ground-source heat pump, full-load retrofit | $15,000; $20,000 with qualified weatherization work | Any income | New construction $8,000 |
| Heat pump water heater | Mail-in or instant $1,250 rebate | Any income | |
| Cold climate ASHP with decommissioning | Single-family homes over 1,000 sq ft: $9,000; apartments/smaller homes: $5,500 | Any income | The fossil fuel system must be fully removed; the NEEP-listed ccASHP must cover 100% of heating load |
| Cold climate ASHP full load heating | Single-family homes over 1,000 sq ft: $5,000; apartments/smaller homes: $3,000 | Any income | There is no need to remove the existing fossil system |
| No-cost energy efficiency improvements for low-income single-family homes (heat pumps may be included) | Capped at $12,000 upstate and $14,000 downstate per project | Income-qualified | Insulation, air sealing and health/safety come first; heat pumps go into homes already air sealed and insulated |
| Moderate-income single-family: 50% of cost of improvements | 50% capped at $6,000 upstate, $7,000 downstate | Income-qualified | |
| Air source heat pump (Sustainable Future Program add-on) | Air Source Heat Pump: $10,000 | Income-qualified | On top of the EmPower+ project caps |
| Ground source heat pump (Sustainable Future Program add-on) | Ground Source Heat Pump: $10,000 | Income-qualified | On top of the EmPower+ project caps |
| Heat pump water heater (Sustainable Future Program add-on) | Heat Pump Water Heater: $5,000 | Income-qualified | On top of the EmPower+ project caps |
Even with federal tax credits gone after December 31, 2025, utility rebates still shrink your upfront installation bill.
Who Qualifies for Clean Heat Program Rebates
If you live in New York and pay into a participating electric utility fund, you can apply for NYS Clean Heat incentives. Whether you qualify depends on your utility territory and on the heating equipment you install in your home. Eligibility for federal tax credits shifted because of Public Law 119-21, the One, Big, Beautiful Bill. The law ended the federal credit known as Section 25C sooner than planned; it covered energy-efficient upgrades to home heating and cooling. Under IRS guidance, no credit is allowed for property entering service after December 31, 2025. Since the federal credits are gone, your main way to lower upfront installation cost is state and utility rebates.
How to Claim Your Heat Pump Incentives Step by Step
The right order protects your rebate and keeps your paperwork correct from day one.
- Start by verifying your utility territory, and before you sign a contract, have an approved installer check current state rebate availability.
- Second, check that your heat pump enters service, that is, is installed and ready for everyday use, before the deadline.
- Third, look over the official IRS rules for 2025 installations, since equipment no longer qualifies once it goes into service after the December 31, 2025 cutoff.
- Fourth, your itemized invoice and model numbers should be kept, so you can prove when you completed the work under Public Law 119-21.
Rules for Equipment and Contractors on Qualifying Systems
Picking eligible hardware and an approved professional keeps your application from being rejected at review. Your heat pump gets checked against efficiency standards by participating contractors in New York, who also size the unit for your home. The state rebate paperwork is also handled by them, so the discount is taken right off your installation bill. For any homeowner studying the federal rules that once covered geothermal or air-source units, Public Law 119-21, 139 Stat. 72 moved the cutoff date. Per IRS fact sheet rules, two credits ended after December 31, 2025: Section 25C, plus Section 25D, the federal credit for residential clean energy. The federal placement rule was met only by systems installed and running in full by that date.
Program Deadlines, Home Assessments, and Utility Offers
Your home is easier for a smaller heat pump to warm if insulation, air sealing, and an energy assessment go with the heating upgrade. Alongside state financing loans, homeowners in New York also use other local utility incentives or a Con Edison heat pump rebate. Before work begins, check current utility rules; since funding tiers can change during the year, this prevents missed deadlines. Under Public Law 119-21, the One, Big, Beautiful Bill, the federal deadline has now passed. IRS guidance that has been published allows no federal credit once equipment is placed in service after December 31, 2025.
New York Heat Pump Rebates: Common Questions
Is the federal heat pump tax credit still available in 2026?
No. If you install a heat pump during 2026, the federal credit cannot be claimed on your tax return. The credit no longer applies to property that goes into service after December 31, 2025, under Public Law 119-21. Claiming it is only possible on a 2025 tax filing, and only when your system ran and was fully installed by year end.
In 2026, what amount does the heat pump rebate in New York pay?
Equipment heating capacity, electric utility territory, and whether the whole heating system is replaced all shape the exact payment in 2026. While some utilities pay a flat rebate for each water heater or outdoor condenser, others calculate incentives using system size. A local approved contractor can check your utility rate schedule and deduct the current incentive from your written estimate.
What does it cost to have a heat pump installed in a medium-sized house?
What you pay for installation depends on your climate zone, whether ductwork is already in your home, and how well your walls are insulated. Electrical panel upgrades and cold-climate models raise the total bill, and utility rebates lower the final price you pay. Comparing real local costs works best when you get itemized bids from two or three participating installers.
Are any tax credits or rebates for heat pumps still available?
New installations after December 31, 2025 no longer qualify for the federal tax credits in Section 25C and Section 25D. Under Public Law 119-21, 139 Stat. 72, Congress cut short both residential energy credits. Upfront rebates that do not rely on your tax return, however, still come from electric utility programs in New York.
Compare Local Installer Quotes With Your Rebate Included
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.
All heat pump rebates in New York
A side-by-side look at the other state and utility programs in New York.
Heat pump cost after rebates
Typical installed prices once the largest rebate is taken off.