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New York Energy Resource Bureau
An independent homeowner guide to NY energy incentives
Source quality: Secondary

Heat Pumps: A NY Homeowner's Buyer's Guide

Equipment type: Air-source heat pumps (with notes on geothermal) Last reviewed: May 27, 2026 Source quality: Secondary

What this equipment is

A heat pump is a single piece of HVAC equipment that handles both heating and cooling. It uses electricity to move heat: out of the house in summer, into the house in winter, rather than burning fuel to make heat directly. That is why an electric heat pump can deliver two to four units of heat for every unit of electricity it draws.

There are two broad categories. Air-source heat pumps move heat between your house and the outdoor air. They are far less expensive to install than geothermal and account for almost all residential heat pump installs in New York. Geothermal (ground-source) heat pumps move heat between your house and a buried loop of fluid in your yard. They are more efficient and pay larger rebates, but the install cost is higher and the yard work is significant.

Air-source units come in two configurations. Ducted heat pumps use your existing forced-air ductwork; one outdoor unit feeds an indoor air handler. Ductless (also called mini-split or multi-split) heat pumps have one outdoor unit feeding multiple wall-mounted indoor heads in different rooms. Ductless makes sense for homes without ducts (typical of older NY housing stock with boilers and radiators) or for additions. Ducted makes sense for homes that already have working ducts.

Programs that apply

A NY heat pump install can touch several rebate and credit programs at once. The combination depends on whether it is air-source or geothermal, which utility serves you, and your household income.

  • NYS Clean Heat. The main state heat pump program. Rebate amounts vary by utility territory; the rebate is paid through your installer at install time.
  • Comfort Home Program. Not a heat pump rebate, but the envelope-work program that comes before a heat pump install for most NY homes. A leaky house needs a bigger heat pump.
  • EmPower+. Income-qualified households can get heat pump installs at no or low cost through this program, which also delivers the federal HEAR rebate in New York.
  • HEAR: Home Electrification and Appliance Rebate. The federal income-qualified rebate, delivered in NY through EmPower+.
  • NY State Geothermal Energy System Credit (page in progress). A 25% state income tax credit, capped at $10,000, that applies to ground-source heat pump systems only.
  • Your utility's residential rebate page. Most NY utilities run additional rebates on top of Clean Heat. See Con Edison Residential Rebates, Central Hudson Residential Rebates, and PSEG Long Island Rebates for what each utility publishes.
  • Federal §25C Energy Efficient Home Improvement Credit. Expired December 31, 2025. See Federal Residential Energy Credits: Program Ended. No new 2026 installs qualify.

Sequencing your project

The order matters. A common mistake is buying the equipment first and worrying about the envelope later, which results in an oversized, expensive heat pump.

  1. Free or low-cost energy audit. Start at cleanheat.ny.gov/find-available-rebates and enter your address. You will see both the rebate amounts available to you and a list of certified contractors. Most certified contractors offer a free or low-cost energy assessment as the first visit.
  2. Envelope work first, if needed. If the audit identifies major air leaks or missing insulation, do that work first under Comfort Home or EmPower+ (income-qualified). A tighter envelope shrinks the heat pump you need, which saves both equipment cost and rebate-eligibility risk.
  3. Manual J load calculation. Insist that your contractor perform a Manual J calculation on the post-envelope home. Manual J is the industry-standard heating and cooling load calculation. Without it, sizing is a guess.
  4. Two quotes from Clean Heat-certified contractors. Get at least two written quotes. Each quote should reference the Manual J output and specify the equipment model number. Uncertified contractors disqualify you from the rebate; verify the certification on the Clean Heat finder.
  5. Equipment selection. For most of New York, confirm the model is rated for cold-climate operation (more on this below). Air-source models on the NEEP cold-climate list are a safe filter for upstate climates. Downstate (Long Island, NYC, Hudson Valley) has more flexibility but cold-climate-rated equipment still tends to perform better in February.
  6. Install. Your contractor schedules the install, handles permitting, and submits the rebate paperwork on your behalf. You do not file with NYSERDA or the utility directly.
  7. Backup heat plan. Even properly-sized cold-climate heat pumps in upstate NY will sometimes call on auxiliary resistance heat on the coldest few days. Make sure the install includes auxiliary electric or a planned dual-fuel pairing with your existing fossil-fuel system if that is the right choice.

What to look for in equipment

You do not need to become an HVAC engineer. You do need to recognize a few specs:

  • HSPF2 (Heating Seasonal Performance Factor, current standard). Higher is better. ENERGY STAR-certified air-source heat pumps generally meet a minimum HSPF2 above the federal floor. For NY, prefer models well above the minimum.
  • SEER2 (Seasonal Energy Efficiency Ratio, current standard). Cooling-side efficiency. Higher is better.
  • COP at 5°F (Coefficient of Performance at 5 degrees Fahrenheit). This is the cold-climate metric that matters most for upstate New York. A heat pump that holds capacity at 5°F is the difference between comfort in February and a freezing house with the backup heat strips running flat out.
  • Cold-climate listing. Models on the NEEP (Northeast Energy Efficiency Partnerships) cold-climate Air Source Heat Pump Specification list are pre-screened for cold-climate performance. The list is publicly searchable.
  • ENERGY STAR certification. A baseline filter, not a guarantee. Most modern residential heat pumps clear ENERGY STAR.
  • Capacity match to Manual J. The single most important spec is that the rated heating capacity at your design temperature matches the calculated load. Oversizing and undersizing both cause problems.

What to ask your contractor

  • Are you registered with the NYS Clean Heat program? (Verify on cleanheat.ny.gov before signing.)
  • Did you perform a Manual J calculation on this home, and can I see the output?
  • What is the model's COP at 5°F (or whatever the local design temperature is for my address)?
  • Is the model on the NEEP cold-climate Air Source Heat Pump list?
  • What is the backup heat plan on the coldest design days, and is auxiliary electric heat included in this install?
  • Will the rebate be processed at install time and deducted from my invoice, or will I receive a check separately?
  • If I am also doing envelope work, can the Manual J be re-run after that work is complete to confirm the right equipment size?

Common pitfalls

  • Oversizing. A heat pump that is too big short-cycles, which kills efficiency and creates humidity problems in summer. Oversizing happens most when contractors skip Manual J and just match the BTU rating of the old furnace.
  • Skipping envelope work. Installing a heat pump in a leaky house means installing a bigger, more expensive heat pump that runs harder. Air-sealing and insulation first is the cheapest move you can make.
  • Uncertified contractor. Not just smaller rebate — no rebate. The Clean Heat program does not pay on uncertified installers regardless of how good the install is.
  • Standard-climate equipment in upstate NY. A heat pump that lists nameplate capacity at 47°F but loses half its capacity at 5°F will leave you cold in January. Cold-climate-rated models exist for a reason.
  • No backup plan. A pure heat pump install with no auxiliary heat and no fossil-fuel backup can leave a house cold during a multi-day cold snap. Plan for it.
  • Wrong refrigerant or wrong line set on a ductless install. Reusing existing refrigerant lines from an old AC condenser is a common shortcut that voids warranties. Replace line sets on retrofit jobs.
  • Permit and inspection skipped. Some installers will offer a faster, cheaper job by skipping local permits. This creates problems at resale and can disqualify you from the rebate. Insist on permits.

Source

NYSERB.com is an independent research site. It is not affiliated with NYSERDA, NEEP, ENERGY STAR, the State of New York, or any utility. Verify all program details and incentive amounts directly with the relevant program administrator before making any financial decision.

Verified against www.nyserda.ny.gov, cleanheat.ny.gov, ashp.neep.org, www.energystar.gov on May 27, 2026.

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