Heat pump rebates in New York (2026)

There is no single New York number, and any page that gives you one is simplifying. The Program Manual (Version 2, published 5 March 2026) sets different incentive tables for each utility — Central Hudson, Con Edison, National Grid, NYSEG, RG&E and Orange & Rockland — and then splits most of them again by Disadvantaged Community status.

Two rules apply across all of them:

• “Projects in DACs are eligible to receive incentives that cover up to 85% of project costs, while incentives for projects outside of DACs are capped at 70% of project costs.”
• For 2026–2030 the programme addresses building electrification “only for customers in residential one- to four-family homes”.

Decommissioning means removing or disabling your old fossil fuel heating system — and it is worth thousands. These are the single-family amounts:

Without decommissioning the figures are considerably lower — typically $5,000–$6,000 single-family, and $2,500 for Con Edison’s integrated-controls option. Con Edison summarises its own offer as “Receive up to $10,000 in incentives”, and notes the delivery: “The contractor takes up to $10,000 off your final invoice. No waiting for rebates.”

• National Grid — $20,000 non-DAC, $25,000 DAC (retrofit)
• NYSEG / RG&E — $17,000 non-DAC, $18,000 DAC (retrofit)
• Central Hudson — $18,000 (retrofit)
• Orange & Rockland — $14,000 non-DAC, $15,000 DAC (retrofit)
• Con Edison — $30,000 non-DAC / $40,000 DAC, but read the condition: these are “whole building rates where the project scope must include all dwelling units in the 1-4 unit building”

New construction rates are lower than retrofit rates across the board. Heat pump water heaters are $1,250 in most territories, $1,000 with Con Edison.

NYSERDA’s EmPower+ is the income-qualified route, open to “income-eligible owners and renters of one- to four-family households” with household income below 80% of State/Area Median Income, or participation in a utility payment assistance programme.

• $12,000 upstate / $14,000 downstate — no-cost improvements for low-income single-family households
• $6,000 upstate / $7,000 downstate — moderate-income, covering 50% of cost
• Plus a HEAR add-on stacked on top: $8,000 heat pumps, $4,000 panel, $2,500 wiring, $1,600 insulation and air sealing. NYSERDA is explicit that “this funding is in addition to the incentive amounts listed above”.

Separate from all of the above, New York has a state income tax credit for ground source systems: 25% of qualified expenditures, capped at $10,000 for systems placed in service on or after 1 July 2025 (it was $5,000 before that date). It is non-refundable but can be carried over for up to five years, and you can claim it for only one system per tax year. Ground source only — air source does not qualify.

• Funding is not unconditional. Con Edison operates contractor allocations, and reserves “the right to decline to offer incentives for any applications that exceed a Contractor’s monthly allocation”. Consumer pages carry the line “Incentives are offered subject to program rules and available funding.”
• Rates can move. The Program Manual states the utilities “may change the incentive offerings ... at any time”. A new Weatherized Tier is being introduced on 1 September 2026.

• NYS Clean Heat — Program Manual Version 2, 5 March 2026 (per-utility incentive tables, DAC caps, 2026–2030 term)
• NYSERDA — Heat Pump Program
• NYSERDA — EmPower+ (income thresholds, HEAR add-on amounts)
• NYS Department of Taxation and Finance — Geothermal Energy System Credit (updated 15 October 2025)
• Con Edison — air source heat pump incentives

Programmes change without notice. If a figure here is out of date, tell us — we fix it and change the date at the top.