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Heat Pump Rebates in New York (2026)

New York operates the NYSERDA Clean Heat program — among the most generous statewide heat pump rebates in the US — offering $1,500 to $5,000 per ton depending on equipment type and utility territory. Combined with the federal 25C credit (30% up to $2,000) and IRA HEEHRA rebates (up to $8,000 for income-qualified households), New York heat pump installs frequently see 60–80% cost coverage. Cold-climate ductless mini-splits and ground-source heat pumps qualify at higher per-ton rates than ducted air-source units. Con Edison customers in NYC also access utility-specific incentives via the Clean Heat NYC marketplace.

New York heat pump programs available

Program Amount Type Authority Deadline
NYSERDA Clean Heat (Air-Source Heat Pump) $1,000–$2,000 per ton Rebate NYSERDA / Utilities Ongoing
NYSERDA Clean Heat (Ground-Source Heat Pump) $1,500/ton + $3,000 base Rebate NYSERDA / Utilities Ongoing
NYSERDA Clean Heat (Heat Pump Water Heater) $700–$1,000 Rebate NYSERDA / Utilities Ongoing
Federal 25C Energy Efficient Home Improvement Credit 30% up to $2,000 (heat pump portion) Tax credit IRS Dec 31 2032
HEEHRA Electrification Rebate Up to $8,000 (income-qualified) Rebate NY State Energy Office Ongoing
EmPower NY (Income-Qualified) Free or reduced heat pump install Grant NYSERDA Ongoing
NYC Healthy Homes Incentive Up to $5,000 Rebate NYC HPD Ongoing

Eligibility quick check

Are NYSERDA Clean Heat rebates utility-specific?

Yes. ConEd, National Grid, NYSEG, RG&E, Central Hudson, and Orange & Rockland each administer slightly different rebate amounts. Statewide minimums apply but utilities can pay more.

Cold-climate ASHP requirement?

Equipment must be on the NEEP Cold Climate Air Source Heat Pump list to qualify for full Clean Heat rebate.

Can I do partial heat pump (supplement gas)?

Yes — partial-displacement heat pumps qualify, but rebate per ton is lower than full whole-home displacement.

How to stack with the federal credit

New York programs combine with the federal 25C 25C Credit (30% up to $3,200 per year) — see the 25C guide for filing instructions and forms.

Worked stacking example

Buffalo homeowner replaces gas furnace with 3-ton cold-climate ASHP at $14,000: NYSERDA Clean Heat ~$4,500 → basis $9,500. Federal 25C 30% = $2,000 cap. Income-qualified add HEEHRA up to $8,000. Total incentives potentially $14,500 on $14,000 install.

Frequently asked questions

How much does a heat pump cost in NY before incentives? +
3-ton ducted air-source heat pump installed: $12,000–$18,000. Ground-source: $25,000–$45,000 including ground loop.
Does Clean Heat work with HEEHRA? +
Yes — they stack. Clean Heat reduces upfront cost; HEEHRA covers additional cost for income-qualified households up to $8,000.
How is "ton" calculated for the rebate? +
1 ton = 12,000 BTU/hr cooling capacity. A whole-home 3-ton heat pump qualifies for 3 × $1,500 = $4,500 minimum on ASHP track.
Is ductless mini-split eligible? +
Yes. Ductless and ducted both qualify. Ductless rebates are typically slightly lower per ton because of multi-zone scaling rules.
Can I claim 25C the same year I claim Clean Heat? +
Yes. Clean Heat reduces basis; federal 25C is calculated on the reduced basis at 30% up to $2,000.
NYC Healthy Homes — what is it? +
NYC HPD Healthy Homes pairs heat pump installs with healthy-home upgrades (lead, asthma triggers) for income-qualified rentals and 1–4 family homes. Up to $5,000 additional.
Is geothermal subsidized more than air-source? +
Yes. Ground-source heat pumps get $1,500/ton plus $3,000 base under Clean Heat — meaningful for the higher install cost.
How do I find a participating contractor? +
NYSERDA Clean Heat contractor search at cleanheatconnects.com.
What about heat pump water heaters? +
NYSERDA Clean Heat pays $700–$1,000 for HPWHs. Federal 25C also covers them under the $2,000 heat pump cap.
Does Clean Heat cover dual-fuel hybrid systems? +
Yes. Hybrid heat pump + furnace setups qualify. Rebate scales with displaced fossil fuel BTU.

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