NYSERDA Heat Pump Rebate: Everything New York Homeowners Need to Know in 2026

Heating and cooling your home should not cost a fortune. But for millions of New York homeowners, energy bills tell a very different story – especially during brutal winters and sweltering summers. That is exactly why the NYSERDA heat pump rebate program exists.

Whether you have heard about it from a neighbor, stumbled across it online, or a contractor mentioned it during a routine service call, you are probably wondering: How much money can I actually get? Do I qualify? And where do I even start?

This guide breaks it all down for you – no jargon, no runaround. Just clear, honest information about the rebates available to New York homeowners right now, how to stack them for maximum savings, and how to get the process started without any of the usual headaches.

What Is the NYSERDA Heat Pump Rebate?

NYSERDA – the New York State Energy Research and Development Authority – is the state agency responsible for helping New Yorkers access clean, affordable energy. One of their biggest priorities right now is helping homeowners switch from fossil fuel heating systems (like oil boilers or gas furnaces) to modern, electric heat pumps.

To make that switch more affordable, NYSERDA runs several rebate and incentive programs that can reduce your out-of-pocket costs by thousands of dollars. These programs run through two main channels:

• The NYS Clean Heat Program – open to all homeowners, with rebates available through your utility company.
• The EmPower+ Program – designed specifically for income-eligible households, where upgrades can be provided at little to no cost.

On top of those, there are also federal tax credits available through the Inflation Reduction Act (IRA), which can stack on top of NYSERDA rebates to squeeze even more savings out of your project.

Why Are Heat Pumps Such a Big Deal for New Yorkers?

Great question. Heat pumps have been around for decades, but the technology has improved massively in recent years. Today’s cold-climate heat pumps can operate efficiently even when temperatures dip well below freezing – which is a game changer for a state like New York.

Here is why homeowners across the state are making the switch:

• Year-round comfort: A heat pump heats your home in winter and cools it in summer – one system, two jobs.
• Dramatically lower bills: Heat pumps move heat rather than generate it from scratch, making them 2 to 3 times more efficient than traditional electric resistance heating.
• Significant rebate opportunities: Right now, the rebate programs are more generous than they have ever been, thanks to new federal IRA funding flowing into New York State.
• Reduced carbon footprint: Switching off oil or gas reduces greenhouse gas emissions and helps New York hit its ambitious climate goals.

And here is something many homeowners do not realize: properly insulating and air sealing your home before installing a heat pump can actually reduce the size – and cost – of the system you need. That is why our team at 

And here is something many homeowners do not realize: properly insulating and air sealing your home before installing a heat pump can actually reduce the size – and cost – of the system you need. That is why our team always recommends starting with a free home energy assessment before any installation work begins. It helps identify exactly what upgrades will have the biggest impact on your comfort and your wallet.

How Much Is the NYSERDA Heat Pump Rebate Worth?

The short answer: potentially a lot. The specific amount depends on the type of heat pump, your income level, your utility company, and whether you layer on federal tax credits. Here is a clear overview of what is available as of 2026:

Program / Source	Equipment	Rebate / Credit	Who Qualifies
NYS Clean Heat	Cold-climate air-source HP	Up to $2,000 per unit	All homeowners
NYS Clean Heat	Ground-source (geothermal)	Up to $8,000+	All homeowners
EmPower+ (NYSERDA)	Heat pump systems	No-cost up to $24,000*	Income-eligible (< 80% AMI)
IRA Federal Tax Credit	Air-source heat pump	30% of cost, up to $2,000	All tax filers
Utility Rebates (Con Ed, NYSEG, etc.)	Varies by utility	$500 – $2,000+	Utility customers

 

* EmPower+ funding of up to $24,000 became available through new federal IRA funding. Households below 60% of state median income may qualify for 100% no-cost upgrades.

Can You Stack These Rebates?

Yes – and this is where things get really interesting. In most cases, you can combine NYS Clean Heat rebates, EmPower+ incentives, utility company rebates, and the federal IRA tax credit on the same project. That means a single heat pump installation could see you walking away with thousands of dollars back in your pocket.

For example: a homeowner in Con Edison territory who is not income-eligible might receive a $2,000 NYS Clean Heat rebate, a $500 utility incentive, plus a 30% federal tax credit on the remaining balance – all on the same system. Numbers like that make a strong case for acting sooner rather than later.

To understand exactly what you can claim, check out our detailed breakdown in our 

To understand exactly what you can claim, check out our detailed breakdown in our NYSERDA rebates explained guide, which covers how different programs work together.

Who Qualifies for the NYSERDA Heat Pump Rebate?

Eligibility depends on which program you are applying through. Here is a clear breakdown:

NYS Clean Heat (Open to All Homeowners)

This program is available statewide and is not income-restricted. You qualify if you are an electric customer (or a combination gas and electric customer) of a participating utility company. Starting January 1, 2026, residential rebates under this program are available for homes with one to four units.

Eligible utilities include Con Edison, NYSEG, RG&E, National Grid, Central Hudson, Orange & Rockland, and Eversource. If your home is heated using oil, propane, or electric resistance and you want to switch to a heat pump, this program was built for you.

EmPower+ (Income-Eligible Households)

EmPower+ is NYSERDA’s flagship program for income-eligible New Yorkers, and it is by far the most generous. To qualify, your household income must fall below 80% of the Area Median Income (AMI) for your county. Here is what that looked like for 2024-2025:

• Below 60% of state median income ($76,680 for a family of four): Qualifies for 100% free upgrades, up to $24,000 with new IRA funding.
• Between 60% and 80% of AMI ($102,240 for a family of four in most counties): Qualifies for substantial incentives, with reduced but still significant support.

The program is open to both homeowners and renters of 1-to-4 family homes across New York State. Renters can participate too, though landlord permission is typically required for certain upgrades.

PRO TIP

Even if you are not sure whether you qualify for EmPower+, it is always worth checking. Many households discover they are eligible when they go through the application process with a certified contractor. Our team helps you verify eligibility at no cost.

What Types of Heat Pumps Are Covered?

NYSERDA programs cover a few different types of heat pump technology. Here is a quick rundown of what qualifies:

Cold-Climate Air-Source Heat Pumps (CC-ASHPs)

These are the most common type and the most popular option for New York homeowners. They look similar to a standard HVAC system – an outdoor unit connected to one or more indoor air handlers. Modern cold-climate models can work efficiently even when outdoor temperatures drop below 0 degrees Fahrenheit, making them well-suited for New York winters.

Rebates under NYS Clean Heat can reach up to $2,000 per unit for qualifying cold-climate models.

Ground-Source Heat Pumps (Geothermal)

Ground-source, or geothermal, heat pumps tap into the stable temperature of the earth below the frost line to heat and cool your home. They are more expensive to install but incredibly efficient. Rebates available through NYSERDA and utility programs can reach $8,000 or more for geothermal systems.

Heat Pump Water Heaters

A heat pump water heater is a separate system that applies the same technology specifically to your domestic hot water supply. These systems use ambient air to heat water, cutting energy use by up to 63% compared to traditional electric water heaters.

Rebates and IRA credits can significantly offset the upfront cost, making these systems one of the smartest standalone upgrades available to New York homeowners right now.

Learn more about what is involved in our dedicated heat pump water heater installation page, where we break down costs, space requirements, and the full rebate picture.

How Much Can You Actually Save?

Let us put some real numbers on this. Water heating alone accounts for roughly 13% of a typical home’s energy use. A heat pump water heater can reduce that by over 60%, saving homeowners $330 or more per year. Over the lifespan of the unit (13 to 15 years), that is $4,300 to $5,600 in savings.

For whole-home heating and cooling, the savings are even more significant. Homeowners who replace oil or propane systems with heat pumps often see total annual savings of 20% to 40% on their energy bills. In older, poorly insulated homes, the savings can be even higher – especially when insulation and air sealing upgrades are paired with the new system.

And remember – those savings compound every single year for the lifetime of the equipment.

REAL EXAMPLE

A NYC homeowner replacing a standard electric water heater with a heat pump water heater could receive a $1,000 to $2,000 rebate plus a 30% federal tax credit. Add $330+ in annual savings and the payback period drops to just 3 to 5 years.

The Connection Between Insulation, Air Sealing, and Heat Pump Performance

Here is something contractors do not always tell you upfront: the performance of your heat pump depends heavily on the thermal envelope of your home. If your home is leaking heat through a poorly insulated attic, drafty windows, or gaps around pipes and electrical outlets, your heat pump has to work overtime to compensate – and you end up paying for it.

That is why the smartest approach is to address insulation and air sealing first, or at minimum, at the same time as your heat pump installation. Properly sealing your home can also mean you qualify for a smaller, less expensive heat pump system.

Our home insulation services and air sealing services are both covered under the EmPower+ program for eligible households – meaning you can potentially get both done at little to no cost before your heat pump goes in.

The result is a tighter, more comfortable home that costs far less to heat and cool year-round.

How to Apply: A Step-by-Step Guide

The application process might sound complicated, but with the right contractor by your side, it is actually quite straightforward. Here is how it works:

• Step 1 – Schedule a free home energy assessment. This is the required first step for both NYS Clean Heat and EmPower+. A certified contractor visits your home, evaluates your current systems, insulation levels, and heating needs, and identifies the best upgrades for your situation. The assessment is free for all New York residents.
• Step 2 – Verify your eligibility. Your contractor will help you confirm which programs you qualify for – whether that is EmPower+, NYS Clean Heat, or both. This step involves reviewing household income, home type, and utility account information.
• Step 3 – Review your upgrade recommendations. After the assessment, your contractor submits a detailed proposal to NYSERDA outlining the recommended upgrades and associated incentive amounts. You will receive a clear picture of what is covered and any remaining out-of-pocket costs.
• Step 4 – Get NYSERDA approval. Once the incentive application is approved, you will receive confirmation and the installation can be scheduled. Your contractor handles all the paperwork.
• Step 5 – Installation and savings. The work gets done, and your rebates are applied – either as direct discounts on your project cost or as credits processed through your utility account. Your federal tax credit gets claimed on your annual tax return.

The key thing to know: you must use a NYSERDA-approved contractor to qualify for most of these rebates. Starting work before receiving program approval can make you ineligible for incentives.

Why Working With a Certified NYSERDA Contractor Matters

Not every HVAC contractor is set up to handle NYSERDA incentive programs. Working with a non-participating contractor means you could lose access to thousands of dollars in rebates – simply because the paperwork was not filed correctly, or the equipment did not meet program specifications.

A certified NYSERDA EmPower+ contractor, on the other hand, handles the entire process end to end: eligibility checks, equipment selection, incentive applications, proper installation, and post-installation follow-up. You do not have to become an expert in rebate programs – that is what we are here for.

As a certified NYSERDA EmPower+ participating contractor, we have completed hundreds of projects across New York. You can learn more about how we work on our about us page, or browse our full range of energy efficiency services to see everything covered under the program.

Do Not Overlook Indoor Air Quality

When homeowners switch to a heat pump, there is one more thing worth considering: ventilation and indoor air quality. Heat pumps, by design, reduce the air exchange that traditionally happened through leaky heating systems. In a well-sealed home, this is a good thing – but it also means proper ventilation becomes more important than ever.

Upgrading your ventilation system at the same time as your heat pump installation ensures your home stays healthy, comfortable, and free from moisture issues like mold or condensation.

Our indoor air quality solutions are also covered under the EmPower+ program, making it easy to address ventilation as part of your overall energy upgrade project.

Frequently Asked Questions

Is the NYSERDA heat pump rebate available to renters?

Yes. Renters in 1-to-4 family homes can participate in the EmPower+ program, though landlord permission is required for certain upgrades. Both renters and landlords benefit – renters enjoy lower energy bills, and landlords see increased property value.

Can I get a rebate if I already installed a heat pump?

Most NYSERDA programs require pre-approval and the use of a participating contractor before work begins. If you have already completed an installation, you may still be eligible for certain tax credits – but it is best to speak with a certified contractor as soon as possible to understand your options.

How long does the process take from start to finish?

Here is a rough timeline you can expect: eligibility verification takes 1 to 2 days, the energy assessment is typically scheduled within a week, incentive approval from NYSERDA takes 1 to 2 weeks, and most installations are completed within 1 to 3 days. From first call to finished installation, most projects wrap up in 3 to 6 weeks.

What if I heat with natural gas only?

As of January 1, 2026, natural gas-only customers are not eligible for residential clean heat rebates under the NYSEG and RG&E programs. However, customers with combined gas and electric accounts, or electric-only accounts, remain eligible. Call us to confirm your specific eligibility based on your utility setup.

What is the difference between EmPower+ and NYS Clean Heat?

EmPower+ is income-restricted and provides the most generous support – potentially covering 100% of upgrade costs up to $24,000. NYS Clean Heat is open to all homeowners regardless of income and provides rebates through your utility company, typically in the $500 to $2,000 range per unit. Both programs can be combined with federal IRA tax credits.

Ready to Start Saving? Here Is What To Do Next

The NYSERDA heat pump rebate programs available in 2026 represent a genuine, once-in-a-generation opportunity for New York homeowners to upgrade their homes, slash their energy bills, and reduce their reliance on fossil fuels – at a fraction of the normal cost.

The programs will not be around forever, and funding can run out. Acting now means more money in your pocket and a more comfortable home for years to come.

The best first step is the simplest one: schedule a free home energy assessment. We will visit your home, evaluate your current setup, confirm your eligibility for every available program, and walk you through exactly what you stand to gain.

Call us today at 929-232-1130 or visit our homepage to schedule your free assessment. You can also browse our services page or explore more energy efficiency articles on our blog to keep learning what is possible for your home.

Note: Rebate amounts, income thresholds, and program terms are subject to change. Always verify current figures at nyserda.ny.gov or by contacting a certified contractor. This article is for informational purposes and was last updated in March 2026.