New York Heat Pump Rebates
Stackable incentives available to New York homeowners installing a qualifying heat pump in 2026.
What's available in New York
New York runs one of the most generous heat pump incentive landscapes in the country through NYS Clean Heat — a single statewide brand jointly administered by NYSERDA and the seven investor-owned utilities (Con Edison, National Grid, NYSEG, RG&E, Orange & Rockland, Central Hudson, and PSEG Long Island). Rebates are paid as instant invoice discounts by Participating Contractors and cover air-source, ground-source, air-to-water, and HPWH equipment, with bonus tiers for fossil-fuel decommissioning and for projects in Disadvantaged Communities. As of January 1, 2026 residential Clean Heat rebates are limited to 1–4 unit homes, NYSEG and RG&E have retired their standalone residential rebate tracks in favor of Clean Heat, and National Grid has shifted to flat per-project incentive amounts; starting March 1, 2028, weatherization standards will be required for any Clean Heat incentive. The realistic non-income-qualified stack for a typical air-source install is ~$13,000 (ASHP + HPWH); ground-source projects can stack up to ~$26,000. Income-qualified households can layer EmPower+ with federal HEAR funding for up to $24,000 in additional support, and the NYSERDA Green Jobs–Green New York loan offers low-interest financing up to $25,000 on the post-rebate balance. The federal §25C tax credit expired December 31, 2025 under OBBBA and is no longer available for 2026 installs.
HEEHRA in New York
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. New York is finalizing program rules.
How heat pump rebates work in New York
New York runs the most coordinated heat pump rebate program in the country. NYS Clean Heat is a single statewide brand jointly administered by NYSERDA and the seven investor-owned utilities (Con Edison, National Grid, NYSEG, RG&E, Orange & Rockland, Central Hudson, PSEG Long Island). Rather than seven separate utility programs, Clean Heat is one program with seven utility-territory rebate tables — your contractor files through your utility's Clean Heat portal, the rebate is paid as an instant invoice discount, and the state handles consistency across utility lines. For a homeowner this means there is one program to understand, not seven.
Effective January 1, 2026, residential Clean Heat rebates are limited to 1-4 unit homes (no more multifamily over 4 units in the residential pathway), NYSEG and RG&E retired their standalone residential rebate tracks in favor of Clean Heat, and National Grid shifted to flat per-project incentive amounts. Starting March 1, 2028, weatherization standards will be required for any Clean Heat incentive — meaning the homeowner will need to demonstrate the home meets a minimum air-sealing and insulation standard before the heat pump rebate is approved. Plan accordingly if your project is on a 2027-2028 timeline.
The realistic Clean Heat stack is more nuanced than a single headline number. Air-source heat pumps and ground-source (geothermal) heat pumps are mutually exclusive within Clean Heat — you pick one or the other, not both, for the same primary heating equipment. Heat pump water heaters stack on top of either choice. Disadvantaged Community (DAC) status (determined by census tract) adds a bonus tier. Fossil-fuel decommissioning (removing the gas line, oil tank, or propane tank as part of the install) adds another bonus. A typical non-DAC, non-decommissioning ASHP install in Con Edison territory lands around $13,000 stacked (ASHP + HPWH); a DAC + full decommissioning install can push toward $18,000-$20,000.
New York rebate programs
NYS Clean Heat — Air-Source Heat Pump
$12,000Statewide rebate administered by NYSERDA and the seven investor-owned utilities (Con Edison, National Grid, NYSEG, RG&E, Orange & Rockland, Central Hudson, PSEG-LI) for whole-home or partial-load air-source heat pump installs. Amount varies by utility territory, fossil-fuel decommissioning, and Disadvantaged Community status; paid as an instant invoice discount through Participating Contractors. Effective Jan 1, 2026 residential rebates are limited to 1–4 unit homes.
NYS Clean Heat — Ground-Source (Geothermal) Heat Pump
$25,000Geothermal track of the Clean Heat program with caps as high as ~$25,000 depending on utility territory, system tonnage, and DAC bonus. Alternative to the air-source rebate, not stackable with it for primary heating equipment. Offered through Participating Contractors at all seven IOUs.
NYS Clean Heat — Heat Pump Water Heater
$1,000Per-unit rebate for ENERGY STAR heat pump water heaters delivered through the same Clean Heat utility portals. Typically $700–$1,000 for 1–4 unit homes; stackable on top of an ASHP or GSHP rebate.
EmPower+ with Federal HEAR Funding
$24,000NYSERDA-administered income-qualified program combining state EmPower+ funds with federal HEAR dollars for up to ~$24,000 covering heat pumps, weatherization, electrical upgrades, and HPWHs for owners and renters of 1–4 family homes at or below ~80% of state or area median income.
New York State Geothermal Energy System Credit (Form IT-267)
$10,000Non-refundable state income tax credit equal to 25% of qualified geothermal energy system equipment expenditures, capped at $10,000 for systems placed in service on or after July 1, 2025 (cap was $5,000 for systems placed in service on or before June 30, 2025). Available for residential property in NY State that is the taxpayer’s residence at install. Stackable on top of NYS Clean Heat geothermal rebates and the federal §25D geothermal credit. Unused credit carries forward up to 5 years.
7 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: replacing a Brooklyn oil furnace
Sasha owns a 1,400 sq ft three-story rowhouse in Brooklyn, served by Con Edison electric and Con Ed gas. Her 28-year-old oil-fired furnace and oil tank are at end of life and her oil deliveries cost $4,200/winter. She gets three quotes for a whole-home cold-climate ducted heat pump (3-ton, NEEP-listed cold-climate-certified, HSPF2 9.5, SEER2 18.5), with full oil-tank decommissioning included. Quoted prices range $24,800 to $29,500; she picks an NYS Clean Heat Participating Contractor at $26,400 installed.
Because her project removes an existing oil heating system, it qualifies for the fossil-fuel decommissioning bonus. Because Brooklyn includes large DAC census tracts (her address is one), she also qualifies for the DAC bonus tier. The Con Edison Clean Heat ASHP rebate for a whole-home cold-climate install at her tonnage with both bonuses lands in the $11,000-$13,000 range — paid as an instant invoice discount on her contractor's bill. She also installs a heat pump water heater as a separate measure ($800-$1,000 Clean Heat HPWH rebate, also instant). Her stack: roughly $12,500 in rebates, bringing her net out-of-pocket to approximately $13,900.
Her household income (around 55% of New York City AMI) qualifies her for EmPower+ with federal HEAR funding — NYSERDA's income-qualified pathway combining state EmPower+ funds with federal HEAR dollars for up to $24,000 covering heat pumps, weatherization, electrical upgrades, and HPWHs for owners and renters of 1-4 family homes at or below ~80% of state or area median income. Sasha applies through EmPower+, the program covers 100% of the heat pump and HPWH cost up to the program caps, and she pays nothing out of pocket. The Clean Heat rebate stacks underneath: EmPower+ effectively replaces the homeowner's portion, and the utility incentive flows to the program rather than to her. The net effect for her: the project is fully funded.
If Sasha didn't qualify for EmPower+ and didn't have DAC + decommissioning bonuses, her stack would still be substantial — roughly $9,000-$10,000 in standard non-income-qualified Clean Heat rebates for the same install. New York's incentive ceiling is high even without bonuses; it just gets dramatically higher with them.
Choosing a contractor in New York
NYS Clean Heat operates exclusively through Participating Contractors who are registered with the program and trained on Clean Heat paperwork. A non-participating contractor cannot file the Clean Heat rebate after the fact — the program requires the contractor to submit through the utility portal at the time of install. This is the single most important thing to verify before signing a contract: ask 'Are you a current NYS Clean Heat Participating Contractor for [your utility], and will Clean Heat appear as a discount on my invoice?' The Clean Heat website maintains a contractor lookup at cleanheat.ny.gov.
New York City has its own contractor licensing layer on top of the state. Within NYC, HVAC contractors must hold a NYC Department of Buildings Master Plumber or Master Fire Suppression Piping Contractor license depending on the work scope, and refrigerant work requires EPA Section 608 certification. Outside NYC, New York State licenses HVAC contractors through county-level requirements that vary. Verify your contractor holds the relevant city/county license — Clean Heat won't validate licensing for you, but a license issue can delay or void your final permit, which delays the rebate.
Cold-climate certification matters more in New York than in milder states. NEEP's Cold-Climate Air-Source Heat Pump Specification (CCASHP) is the de facto standard for NY heat pump installs, and Clean Heat rebate tiers step up significantly for NEEP-listed equipment. A non-cold-climate heat pump in upstate New York can deliver poor performance below 5°F and may push the homeowner toward expensive electric resistance backup. Ask your contractor for the AHRI certificate AND the NEEP CCASHP listing — both should be available before the install starts.
Common pitfalls for New York homeowners
- Trying to stack ASHP and GSHP rebates. NYS Clean Heat treats air-source and ground-source heat pumps as mutually exclusive for primary heating equipment. You don't get both. A homeowner installing a GSHP for primary heating with a small ASHP for a second-story addition gets the GSHP rebate only; the ASHP would not be eligible as a separate primary-heating rebate.
- Missing the DAC bonus. Disadvantaged Community status is determined by census tract, not by income. A homeowner in a DAC tract qualifies for the DAC bonus regardless of personal income. Many homeowners (and contractors) don't check the DAC map and miss thousands of dollars in bonus rebate. Use NYSERDA's DAC lookup tool at climate.ny.gov before starting your rebate paperwork.
- Decommissioning the wrong fuel. Clean Heat's fossil-fuel decommissioning bonus requires actual removal of the existing fuel infrastructure (capping the gas line, removing the oil tank, removing the propane tank). Simply stopping use of the existing system isn't decommissioning. The bonus paperwork requires photos and a contractor attestation. If you keep the gas furnace as backup, you don't qualify for decommissioning — that's a dual-fuel install, not a full electrification.
- Ignoring weatherization in 2027-2028 timing. Starting March 1, 2028, Clean Heat will require weatherization standards as a precondition for the heat pump rebate. Air sealing, insulation, and combustion safety testing are all on the list. If your project is scheduled for late 2027 or 2028, build the weatherization scope into your contractor's quote — adding it after the fact creates paperwork sequencing issues with the rebate.
- Assuming §25C is still alive. The federal residential energy property credit (§25C) covered up to $2,000 for heat pumps in 2025 but was repealed effective December 31, 2025 by the OBBBA. New York installs completed in 2026 cannot claim it. NYS Clean Heat is the primary 2026 incentive; the federal §25D 30% credit still applies to geothermal but not air-source.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- NYS Clean Heat — Air-Source Heat Pump−$12,000
- NYS Clean Heat — Heat Pump Water Heater−$1,000
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.