Heat pump rebates in New York come mainly from NYS Clean Heat, run by the state’s six large utilities, which pays $2,500 to $14,000 for a cold-climate air-source heat pump in a single-family home. Income-qualified households can use NYSERDA’s EmPower+ instead, while Long Island has PSEG Long Island’s own program.
Information checked on November 4, 2026. Clean Heat amounts come from the NYS Clean Heat Program Manual, Version 3, effective September 1, 2026. Because they change during the year, confirm them with a participating contractor.
NYS Clean Heat: the main heat pump rebates in New York
NYS Clean Heat is run by Central Hudson, Con Edison, National Grid, NYSEG, Orange & Rockland (O&R) and RG&E. NYSERDA, in turn, is the main administrator for low- and moderate-income 1–4 family homes. The rebate depends on your utility, the type of project and, since September 1, 2026, whether your home is weatherized.
- Category 2: a full-load cold-climate air-source heat pump, while your fossil-fuel system stays as backup with integrated controls. Con Edison offers this only as Category 2a.
- Category 2b: a full-load heat pump, and the contractor decommissions the old fossil-fuel system.
- Category 3: a ground-source (geothermal) heat pump.
- Category 4: upgrading a partial system to full load.
- Category 5: a heat pump water heater.
Air-source heat pump rebates in New York by utility
| Utility | Fossil system kept (Category 2) | Fossil system removed (Category 2b) |
|---|---|---|
| Central Hudson | $4,000 / $8,000 | $7,000 / $12,000 |
| Con Edison | $2,500 with integrated controls (Category 2a) | $7,000 / $10,000 |
| National Grid | $4,000 / $8,000 | $7,000 / $12,000 |
| NYSEG and RG&E | $4,000 / $8,000 | $7,000 / $12,000 |
| Orange & Rockland | $4,000 / $8,000 | $7,000 / $12,000 |
In addition, homes in disadvantaged communities (DACs) get more. For example, Category 2b pays $9,000 or $14,000 with National Grid and O&R, $8,000 or $13,000 with NYSEG and RG&E, and $8,000 or $11,000 with Con Edison. Central Hudson has no separate DAC table.
However, no incentive can exceed 70% of the project cost, or 85% in Central Hudson territory and for DAC projects. So to receive the full $12,000 at the 70% cap, a project must cost at least about $17,143, by our calculation.
Geothermal heat pump rebates in New York
Of all heat pump rebates in New York, ground-source systems earn the largest. In a single-family home outside a DAC, a geothermal retrofit pays $15,000 or $20,000 with Central Hudson, NYSEG and RG&E, and $18,000 or $23,000 with National Grid and O&R. Con Edison, meanwhile, pays $25,000 or $30,000 per building, or $35,000 or $40,000 in a DAC.
On top of that, New York’s geothermal energy system tax credit covers 25% of the equipment cost, up to $10,000 for systems placed in service on or after July 1, 2025. The credit isn’t refundable, but you can carry the excess forward for up to five years. For heat pump water heaters, upstate utilities pay $1,250, while Con Edison pays $1,300 through stores and distributors.
How the new weatherized tier works
Since September 1, 2026, Clean Heat pays a higher “weatherized” amount if your home qualifies in one of three ways. First of all, a home built after 2010 can qualify. Secondly, past participation in a weatherization program can count. Finally, a home can pass a performance test based on its heating load per square foot.
Moreover, this matters even more later. By March 1, 2028, the utilities must make weatherization a requirement for Clean Heat incentives, according to the manual. Therefore, if you plan to insulate anyway, doing it before the heat pump can raise your heat pump rebates in New York now.
Rules to know before you sign
- Participating contractor: air-source and ground-source heat pumps must be installed by a NYS Clean Heat Participating Contractor.
- Equipment: also, air-source heat pumps must be on the NEEP cold-climate list and carry at least a 5-year parts warranty.
- Sizing: systems must be sized with ACCA Manual J and Manual S. A full-load system must cover at least 100% of the heating load and serve at least 80% of the home’s conditioned area.
- No new fossil equipment: installing new fossil-fuel equipment alongside the heat pump is prohibited.
- Con Edison pre-approval: since September 1, projects need pre-approval before installation, or they’ll be cancelled. Then the contractor has 90 days to finish the installation.
- Payment: Con Edison pays the contractor, while upstate utilities offer an instant discount or a check after installation.
For more on sizing, see our guide on heat pump size for a 2,000 sq ft home, and for cold winters, our cold-climate heat pump guide.
EmPower+ for income-qualified households
Among heat pump rebates in New York, NYSERDA’s EmPower+ covers up to 100% of eligible energy upgrades for low-income households and up to 50% for moderate-income households. According to City Limits, those tiers pay up to $10,000 and $5,000 per project. Since March 18, 2026, the low-income tier uses 60% of area or state median income, whichever is higher.
- Who qualifies: households on HEAP, SNAP, SSI or public assistance, or with income below 80% of area or state median income, whichever is higher.
- Heat pumps: approval depends on your current heating fuel and insulation. In addition, NYSERDA says heat pumps generally aren’t available to replace natural gas heat, except in some utility pilots.
- Federal funds: EmPower+ uses federal HEAR money, so the $14,000 HEAR household limit applies.
- How to apply: apply through NYSERDA’s MyEnergy portal, and NYSERDA assigns a contractor from its list. However, NYSERDA won’t reimburse work already completed.
Long Island: PSEG Long Island
Long Island isn’t part of NYS Clean Heat, which lists only the six utilities above. Instead, PSEG Long Island runs its own Home Comfort program. Its page didn’t list heat pump amounts when we checked, so ask a PSEG Long Island partner contractor for the current figures.
Federal heat pump rebates in New York
To begin with, the 30% federal tax credit ended for heat pumps placed in service after 2025. Also, The Rebate Map found no HOMES whole-home program in New York as of September 9, 2026. For the national picture, see our guides to heat pump rebates and the HEAR rebate program.
How to claim heat pump rebates in New York
- First of all, find out whether your home is in a disadvantaged community and whether it qualifies for the weatherized tier.
- Then get quotes from NYS Clean Heat Participating Contractors, each with a Manual J load calculation.
- Next, if your income is under 80% of median, apply to EmPower+ before you sign anything.
- Also, for Con Edison, make sure the contractor gets pre-approval before work starts.
- After that, let the contractor submit the application, within 30 days for Con Edison and 60 days upstate.
- Finally, for geothermal, claim the state tax credit with Form IT-267.
To budget the project, compare prices in our heat pump cost guide and running costs in heat pump vs oil heat, a common switch in New York.
Related guides: See also our guide on the 25C tax credit.
Heat pump rebates in New York: FAQ
Can I keep my gas or oil furnace and still get a rebate?
Yes, with limits. Upstate utilities pay Category 2 rebates when the old system stays as backup with integrated controls, and Con Edison pays $2,500 under Category 2a. However, the rebate is larger if you decommission the fossil system.
Do I apply for NYS Clean Heat myself?
No. Instead, a Participating Contractor applies for you, and the incentive goes to the contractor or comes off your bill as a discount.
Is there a New York tax credit for air-source heat pumps?
The state credit we found applies to geothermal (ground-source) systems: 25% of the cost, up to $10,000. For air-source heat pumps, the help comes from rebates instead.
Do Clean Heat rebates depend on my income?
No, the standard Clean Heat amounts don’t. In contrast, EmPower+ is only for low- and moderate-income households.
Sources and review
Sources: NYS Clean Heat Heat Pump Program Manual, Version 3 (September 1, 2026); New York State Department of Taxation and Finance, geothermal energy system credit (updated October 15, 2025); NYSERDA, EmPower+ FAQs (2026); City Limits, more households to qualify for EmPower+ (March 16, 2026); PSEG Long Island, Home Comfort (2026); The Rebate Map, Home Energy Rebates by state (September 9, 2026); IRS, FAQs on the end of energy credits (FS-2025-05, August 21, 2025). All checked on November 4, 2026.
Written by: HVAC Switch. Last updated: November 4, 2026. Read our editorial policy to learn how we research prices, or contact us if you spot an error.