New York Heat Pump Rebates & Incentives (2026)
New York offers some of the largest heat pump rebates in the U.S. through the NYS Clean Heat program — up to $12,000 for air-source systems and up to $40,000 for geothermal. Income-eligible households can combine EmPower+ base incentives of $12,000–$14,000 with up to $14,000 in additional HEAR funding. Federal tax credits ended December 31, 2025, but state and utility incentives make New York one of the best places to install a heat pump in 2026. This guide covers all major New York heat pump incentives available in 2026, including NYS Clean Heat, Con Edison, National Grid, PSEG Long Island, Central Hudson, EmPower+, the Weatherized Tier, and the state geothermal credit. Here's what's actually available.
Updated July 9, 2026 — verified against official program sources
Rates and program availability may change after this date.
New York
Open
NYS Clean Heat (2026–2030) pays $2,500–$12,000 for air-source heat pumps and $14,000–$40,000 for geothermal, varying by utility, project category, and DAC status. EmPower+ provides $12,000–$14,000 base plus up to $14,000 in HEAR funds for income-eligible households. A 25% geothermal tax credit (max $10,000) remains. Federal 25C/25D expired Dec 31, 2025.
Sources:
The Short Version
✓ NYS Clean Heat: $2,500–$12,000
Reauthorized 2026–2030 with $5.36 billion. Six utilities participate. Full fossil fuel removal earns the highest rebates. DAC areas get enhanced amounts at most utilities.
✓ EmPower+ (HEAR): Up to ~$28,000 Combined
For income-eligible households at or below 80% of State or Area Median Income (SMI/AMI). $12,000–$14,000 base plus up to $14,000 in HEAR funds — potentially free installations covering 100% of project costs.
✓ Total Potential Savings
$2,500–$12,000 (above 80% SMI/AMI, Clean Heat only) to ~$28,000 (below 80% SMI/AMI, EmPower+ with HEAR). Geothermal: $14,000–$40,000 plus 25% state tax credit up to $10,000.
✗ Federal Tax Credits Expired
Section 25C ($2,000) and Section 25D (30% geothermal) both ended December 31, 2025. NY's state programs more than compensate for most homeowners.
⚠ Weatherized Tier: Bonus Now Launching September 2026, Mandatory in 2028
Originally scheduled for March 1, 2026, the Weatherized Tier launch was extended to September 1, 2026 per Program Manual Version 2. It unlocks bonus incentives and the 85% project cost cap. It's optional through 2027, but weatherization becomes mandatory by March 1, 2028 (at a standard still to be defined) — meaning homes will eventually need to meet weatherization standards to receive any Clean Heat incentive.
Federal Tax Credits Have Ended
Section 25C (up to $2,000/year for heat pumps) and Section 25D (30% for geothermal) both expired December 31, 2025 under the One Big Beautiful Bill Act. No federal tax credit is available for 2026 installations. New York's state programs more than compensate — NYS Clean Heat offers up to $12,000 for air-source and $40,000 for geothermal, significantly more than the expired federal credits. For details, see our federal heat pump tax credit explainer.
If you completed an installation by December 31, 2025, you can still claim the credit on your 2025 return using IRS Form 5695. Unused Section 25D credits may carry forward to future tax years.
NYS Clean Heat Program — The Flagship
The NYS Clean Heat program is the primary heat pump incentive for New York homeowners. Reauthorized for 2026–2030 with approximately $5.36 billion, it's administered jointly by NYSERDA and six major utilities. The 2026 cycle introduced flat-rate incentives per project (replacing the old per-Btuh model), a new Weatherized Tier, and higher caps.
⚠ Common Mistake: Choosing a Non-Participating Contractor
All systems must be on the NEEP Cold Climate ASHP Product List (rated to -15°F), sized to meet 90–120% of design heating load via Manual J calculation, and installed by a NYS Clean Heat Participating Contractor. The incentive is applied directly to your contractor's invoice. If your contractor isn't enrolled, you get nothing.
Incentive caps: 70% of project cost (non-DAC) or 85% (DAC, Central Hudson territory, or Weatherized Tier).
Con Edison (NYC & Westchester)
| Category | Standard | DAC |
|---|---|---|
| Full replacement (fossil fuel removed) | $8,000 | $10,000 |
| Full load heating (fossil retained as backup) | $2,500 | $4,500 |
| Ground source (GSHP, whole building) | $30,000 | $40,000 |
| Heat pump water heater | $1,000 | $1,000 |
National Grid (Upstate NY)
National Grid switched to flat-rate per-project incentives in 2026 (replacing the old per-Btuh model).
| Category | Non-DAC (SF) | DAC (SF) |
|---|---|---|
| Cat. 2b — Full load, fossil removed | $10,000 | $12,000 |
| Cat. 2 — Full load, fossil retained | $6,000 | $8,000 |
| Cat. 3 — GSHP retrofit | $20,000 | $25,000 |
| Cat. 3 — GSHP new construction | $14,000 | $19,000 |
| Cat. 4 — Partial to full load | $4,000 | $4,000 |
| Cat. 5 — HPWH | $1,250 | $1,250 |
Other Utility Programs
Central Hudson (Mid-Hudson Valley)
Central Hudson uniquely applies the 85% project cost cap to all customers regardless of DAC status — the most generous cap structure among upstate utilities.
| Category | Single Family |
|---|---|
| Cat. 2b — Full load, fossil removed | $8,000 |
| Cat. 2 — Full load, fossil retained | $5,000 |
| Cat. 3 — GSHP retrofit | $18,000 |
| Cat. 4 — Partial to full load | $3,000 |
| Cat. 5 — HPWH | $1,250 |
Orange & Rockland (Lower Hudson Valley)
O&R publishes no rebate amounts on its own site — incentives flow through NYS Clean Heat Participating Contractors. Single-family amounts per the 2026 Program Manual:
| Category | Non-DAC (SF) | DAC (SF) |
|---|---|---|
| Cat. 2b — Full load, fossil removed | $9,000 | $10,000 |
| Cat. 2 — Full load, fossil retained | $5,000 | $6,000 |
| Cat. 3 — GSHP retrofit | $14,000 | $15,000 |
| Cat. 4 — Partial to full load | $3,000 | $3,000 |
| Cat. 5 — HPWH | $1,250 | $1,250 |
PSEG Long Island
PSEG Long Island runs its own program outside NYS Clean Heat, with rebates tiered by income. Whole-house cold-climate air-source rebates for single-family homes run $4,000 (market rate), $5,000 (DAC or moderate income, below 80% AMI), and $7,500 (low income, below 60% AMI). Geothermal is far larger — up to $24,000 per dwelling for new systems at the low-income rate. Systems must be NEEP-listed, sized to 100–120% of the dwelling's heating load via Manual J, and installed by a participating Home Comfort Partner. Note that PSEG Long Island's income tiers (60%/80% AMI) differ from EmPower+'s 80% SMI/AMI standard.
| Geothermal (per dwelling) | Market rate | DAC / moderate income | Low income |
|---|---|---|---|
| New system | $12,000 | $15,000 | $24,000 |
| Retrofit | $6,000 | $7,500 | $12,000 |
NYSEG & RG&E (Southern Tier, Rochester)
NYSEG and RG&E ended their standalone residential rebate programs on June 30, 2025. All heat pump incentives now flow exclusively through NYS Clean Heat via Participating Contractors. Under the 2026 Program Manual, both pay $6,000 for single-family full-load projects with fossil retained and $10,000 with full fossil removal (NYSEG adds $1,000 in DACs; RG&E's DAC adder applies only to apartments). GSHP retrofits earn $17,000 ($18,000 in DACs).
EmPower+ & Federal HEAR — Up to ~$28,000 Combined
New York was the first state to launch IRA-funded home energy rebates (June 2024). EmPower+ covers low-income households' improvements at no cost up to $12,000 per project upstate or $14,000 downstate (moderate-income households get 50% coverage up to $6,000–$7,000). Federal HEAR funding flows through EmPower+ on top of those caps — up to $14,000 in additional rebates per household, including up to $8,000 toward a heat pump — for a combined ceiling of roughly $26,000–$28,000 covering heat pumps, weatherization, electrical upgrades, and heat pump water heaters.
Eligible households at or below 80% of the State or Area Median Income (SMI/AMI, whichever is greater) can receive 100% of project costs covered with zero out-of-pocket expense. HOMES rebates for moderate- and market-rate households are also available.
EmPower+ and Clean Heat: Choose One Per Measure
EmPower+ and NYS Clean Heat utility incentives cannot be combined for the same installed measure. Income-eligible households should choose EmPower+ (higher combined ceiling of ~$28,000) for the heat pump itself. Clean Heat can potentially cover other measures in the same project. Market-rate households above 80% SMI/AMI use Clean Heat as their primary pathway.
Weatherized Tier — Launching September 1, 2026
The new Weatherized Tier rewards homes meeting insulation and air-sealing standards with bonus incentives and the 85% project cost cap (same as DAC areas). Originally scheduled for March 1, 2026, the launch was extended to September 1, 2026 per Program Manual Version 2 (March 5, 2026). This is a bonus for 2026–2027, but the Commission's order requires weatherization as a prerequisite for all Clean Heat incentives by March 1, 2028, at a standard still to be defined — meaning homes will eventually need to meet weatherization standards to receive any Clean Heat incentive.
How to Qualify (Any One Pathway)
1. Built After 2010
When NY's building code first required blower-door testing. Automatic qualification.
2. Prior Weatherization Program
Participated in EmPower+, NYSERDA Comfort Home, Con Edison Weather Ready, WAP, or similar qualifying program.
3. NYSERDA Virtual Energy Assessment
Receive a "Heat Pump Ready Envelope" designation through NYSERDA's tool (launching statewide 2026).
4. Certified Home Energy Assessment
Passes air sealing, minimum R-38 attic insulation, and ACH50 thresholds based on building vintage and size.
How Programs Stack
Important: EmPower+ and NYS Clean Heat utility incentives cannot be combined for the same installed measure. Income-eligible households must choose one pathway. However, different programs can cover different measures in the same project (e.g., Clean Heat for the heat pump, EmPower+ for weatherization). For a typical $20,000 whole-home heat pump installation:
Above 80% SMI/AMI — Con Edison (Non-DAC)
- Clean Heat full replacement: $8,000
- Cap: 70% of $20,000 = $14,000
- Federal tax credit: $0 (expired)
Realistic maximum: ~$8,000
Above 80% SMI/AMI — National Grid (DAC)
- Clean Heat Cat. 2b (fossil removed): $12,000
- Cap: 85% of $20,000 = $17,000
Realistic maximum: ~$12,000
Below 80% SMI/AMI — EmPower+ with HEAR (Best Case)
- EmPower+ base (low-income): up to $12,000–$14,000
- Additional HEAR funding: up to $14,000 ($8,000 max toward the heat pump)
- Coverage: up to 100% of project costs
- Note: cannot also receive Clean Heat for same HP
Realistic maximum: ~$20,000 (project fully covered — free)
What You'll Actually Pay
For a $20,000 whole-home system with full fossil removal: market-rate homeowners in non-DAC areas pay $10,000–$12,000 out of pocket (rebates run $8,000–$10,000 across the six Clean Heat utilities; PSEG Long Island's separate program pays $4,000–$7,500 for air-source). DAC-area homeowners pay $8,000–$10,000 (rebates $10,000–$12,000 — except Central Hudson, which pays the same $8,000 with or without DAC status). Keeping a fossil backup cuts the rebate sharply — as low as $2,500 at Con Edison. Income-eligible households through EmPower+ may pay $0. On-Bill Recovery Loans and NYSERDA Smart Energy Loans can finance remaining costs.
Weatherization and All-Electric Building Act
Weatherization: EmPower+ provides free weatherization services (insulation, air sealing, heating system replacement) for income-eligible households. WAP is also available through local Community Action Agencies for households at or below 60% of State Median Income.
All-Electric Building Act: Effective January 1, 2026, New York became the first state to require all-electric equipment in new construction of seven stories or fewer — no gas furnaces, stoves, or water heaters. This applies only to new construction, not existing homes. The Climate Action Council has recommended eventually prohibiting new fossil fuel furnace installations in existing homes when systems reach end of life, but this is not yet law.
✓ Best Candidates for a Heat Pump in New York
Income-eligible households (EmPower+ with HEAR covers up to ~$28,000 combined — potentially free). Homeowners in DAC areas ($10,000–$12,000 Clean Heat at most utilities + 85% cap). Oil-heated homes (highest fuel cost savings + strongest rebate tiers for fossil fuel removal). Anyone with a Weatherized Tier-qualifying home (85% cap + bonus incentives).
Climate Context
New York spans climate zones 4A (NYC, Long Island) through 6A (Adirondacks, far upstate). All NYS Clean Heat–qualifying equipment must be on the NEEP Cold Climate Product List, rated to -15°F.
| Location | ASHRAE 99% Design Temp | Climate Zone |
|---|---|---|
| New York City | ~11°F | 4A |
| Albany | ~-2°F | 5A |
| Buffalo | ~2°F | 5A |
| Syracuse | ~-2°F | 5A |
Approximately 61% of NY homes heat with natural gas, 17% with fuel oil, and 16% with electricity (EIA RECS 2020). New York's fuel-oil share is among the highest in the nation, which makes it one of the most compelling states for heat pump economics. For more on energy storage, see our home battery guide.
How to Apply
Contact a NYS Clean Heat Participating Contractor
Find contractors at cleanheat.ny.gov. The incentive is applied directly to your invoice — you see the reduced price upfront.
Check Income Eligibility for EmPower+
If you may qualify (at or below 80% of State or Area Median Income), apply at nyserda.ny.gov or call 1-866-NYSERDA. This unlocks up to ~$28,000 in combined EmPower+ and HEAR incentives.
Pursue the Weatherized Tier (Launching September 2026)
If your home was built after 2010, you auto-qualify. Otherwise, request a NYSERDA Virtual Energy Assessment or certified audit. When the Tier launches September 1, 2026, qualifying unlocks bonus incentives and the 85% cap.
Apply for Financing If Needed
On-Bill Recovery Loans (payments capped at estimated energy savings) or NYSERDA Smart Energy Loans (low-interest) can cover remaining costs after incentives.
What to Watch
Weatherized Tier Launch (September 1, 2026)
Delayed from March 1 to September 1, 2026. When active, qualifying homes get bonus incentives and the 85% project cost cap. Specific dollar amounts are pending in Program Manual updates — check cleanheat.ny.gov.
IRA Funding Runway
HEAR and HOMES funds remain available until expended or September 30, 2031. The OBBBA did not repeal IRA rebate allocations. New York has already been distributing funds through EmPower+ since June 2024.
2028 Weatherization Mandate
By March 1, 2028, weatherization becomes a prerequisite for all Clean Heat incentives (the required standard is still to be defined). Qualifying now earns the bonus and avoids future compliance costs.
NY State Geothermal Tax Credit
The 25% state geothermal tax credit (up to $10,000) remains active for 2026. Combined with Clean Heat rebates of $14,000–$40,000, this makes NY one of the best states for ground-source systems.
Frequently Asked Questions
What heat pump rebates are available in New York in 2026?
NYS Clean Heat offers $2,500–$12,000 for air-source heat pumps (depending on utility, project category, and DAC status) and $14,000–$40,000 for geothermal. EmPower+ provides $12,000–$14,000 in base incentives plus up to $14,000 in HEAR funding for income-eligible households at or below 80% of State or Area Median Income. The new Weatherized Tier, which unlocks bonus incentives and the 85% project cost cap, was delayed from March 1 to September 1, 2026. Federal 25C and 25D tax credits expired December 31, 2025.
Can I stack NYS Clean Heat rebates with HEAR in New York?
EmPower+ (which delivers HEAR funding) and NYS Clean Heat utility incentives cannot be combined for the same installed measure. Income-eligible households must choose one pathway for the heat pump itself. However, different programs can cover different measures in the same project. For market-rate homeowners, Clean Heat is the primary pathway ($2,500–$12,000). Total Clean Heat incentives are capped at 70% of project cost (non-DAC) or 85% (DAC, Central Hudson, or Weatherized Tier).
What is the NYS Clean Heat Weatherized Tier?
Originally scheduled for March 1, 2026, the Weatherized Tier launch was extended to September 1, 2026 per Program Manual Version 2. It provides bonus incentives and the higher 85% project cost cap for homes meeting insulation and air-sealing standards. You qualify through four pathways: built after 2010, prior weatherization program participation, NYSERDA Virtual Energy Assessment, or certified home energy assessment. This is a bonus in 2026–2027, but the Public Service Commission order requires weatherization as a prerequisite for all Clean Heat incentives by March 1, 2028, at a standard still to be defined.
What is EmPower+ and how does it connect to HEAR?
EmPower+ is NYSERDA’s program for income-eligible households at or below 80% of the State or Area Median Income (whichever is greater). Low-income households receive no-cost improvements capped at $12,000 (upstate) or $14,000 (downstate) per project. New York channels federal HEAR funding through EmPower+ on top of that — up to $14,000 in additional rebates per household (including up to $8,000 toward a heat pump) — for a combined ceiling of roughly $26,000–$28,000, potentially covering 100% of project costs with zero out-of-pocket expense.
Do all heat pumps qualify for New York incentives?
No. All eligible air-source heat pumps must appear on the NEEP Cold Climate ASHP Product List, ensuring performance at temperatures as low as -15°F. Systems must be sized to meet 90–120% of the building’s design heating load via Manual J calculation and installed by a NYS Clean Heat Participating Contractor.
Who administers New York’s heat pump programs?
NYS Clean Heat is administered jointly by NYSERDA and six major electric utilities: Con Edison, National Grid, NYSEG, RG&E, Central Hudson, and Orange & Rockland. PSEG Long Island runs its own separate heat pump program for Long Island homeowners. EmPower+ and HEAR are administered by NYSERDA. The NY State geothermal tax credit is claimed through the state tax return.
See also
Sources
- NYS Clean Heat — Program Manual v2 (March 2026)
- NYSERDA — NYS Clean Heat Program
- NYSERDA — EmPower+
- Con Edison — Heat Pump Incentives
- National Grid — Electric Heating & Cooling
- Central Hudson — Heat Pump Incentives
- Orange & Rockland — Heat Pump Incentives
- PSEG Long Island — Heat Pump Rebates
- IRS 25C (expired)
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to New York homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. NYS Clean Heat rebate amounts vary by utility territory, DAC status, project category, and Weatherized Tier qualification. EmPower+ eligibility requires income verification at or below 80% of State or Area Median Income. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with your utility, NYSERDA, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)