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Rebate · NYSERDA · New York

NYSERDA Clean Heat — Ground Source Heat Pump

$1,500 per ton + $3,000 base = ~$7,500 for 3-ton system

The Ground Source Heat Pump (GSHP) track of NYSERDA Clean Heat is the most generous geothermal rebate in the country, paying $1,500 per ton of capacity plus a $3,000 base incentive. A typical 3-ton residential installation receives $7,500 in upfront rebate — meaningful given installed costs of $25,000–$45,000 for ground-source systems including the ground loop. Combined with the federal 25D credit (30% uncapped), New York geothermal installs frequently see net cost in the $14,000–$22,000 range with payback of 8–12 years considering the 50–70% operating savings vs. propane/oil heat.

Eligibility

Who qualifies?

New York residential customers of participating utilities (Con Edison, National Grid, NYSEG, RG&E, Central Hudson, O&R).

Equipment certification?

ENERGY STAR Geothermal certification required. Closed-loop, open-loop, and pond/lake systems all qualify.

Installer certification?

IGSHPA (International Ground Source Heat Pump Association) certified installer required for full rebate.

How to apply for NYSERDA Clean Heat GSHP

  1. Find IGSHPA-certified contractor

    Contractor directory at cleanheatconnects.com. Filter for ground-source specialists.

  2. Site evaluation

    Geothermal requires site evaluation for ground loop type (vertical bore, horizontal trench, pond/lake). Adds 1–2 weeks to project timeline.

  3. Quote with rebate applied

    Contractor applies $1,500/ton + $3,000 base as upfront price reduction.

  4. Reserve and install

    Reservation through utility portal. Installation 5–14 days depending on ground loop type.

  5. Discount applied at commissioning

    Rebate paid to contractor upon successful interconnection and commissioning.

Stacking with other programs

Stacks with federal 25D (30% uncapped — best for geothermal), NY State Solar Tax Credit (does not apply but proves NY tax credits stack across IRS sections), and NYC Healthy Homes if applicable. A $30,000 GSHP install in Brooklyn can net $7,500 NYSERDA + $6,750 federal = $14,250 incentives.

Frequently asked questions

GSHP vs ASHP — which qualifies for what? +
Air-source heat pumps qualify under federal 25C ($2,000 cap) and NYSERDA ASHP track ($1,000–$2,000/ton). Ground-source qualifies under federal 25D (uncapped) and NYSERDA GSHP track ($1,500/ton + $3,000 base).
Why is GSHP more expensive but better-rebated? +
GSHP requires ground loop installation ($15,000–$30,000) but achieves 50–70% operating savings vs. propane/oil. Higher COP (3.5–4.5 vs. ASHP's 2.5–3.5) means lower lifetime cost. NYSERDA structures rebates to bridge the higher upfront cost.
Vertical vs horizontal ground loop? +
Vertical bore (200–400 ft) — most common, lot-size friendly, expensive. Horizontal trench (4–6 ft deep, large area) — cheaper but needs lot space. Pond/lake — cheapest if applicable. NYSERDA pays the same per-ton rebate regardless.
NYC vs upstate — is geothermal viable in NYC? +
Vertical bore makes NYC geothermal possible on small lots. NYC Healthy Homes Incentive can add up to $5,000 on top of NYSERDA Clean Heat for income-qualified.

Official program page: https://cleanheatconnects.com/

Related programs and credits

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