This is an independent service. NYSERB is not affiliated with New York State, NYSERDA, or any government agency. Learn more
New York Energy Resource Bureau
An independent homeowner guide to NY energy incentives
Source quality: Primary

Central Hudson Residential Rebates

Administered by: Central Hudson Gas & Electric Status: Active in 2026 Verified: May 27, 2026 against Central Hudson Residential Incentives Source quality: Primary

What it is

Central Hudson Gas & Electric serves the Hudson Valley, covering parts of Dutchess, Ulster, Orange, Columbia, Greene, Putnam, Sullivan, and Albany counties. Its published rebate schedule is the most specific, most transparent set of utility incentives in this research sweep. The dollar amounts are listed on Central Hudson's own pages, broken down by equipment type, home size, and whether the install removes a fossil fuel heating source. You do not have to call anyone to get a ballpark number.

The heat pump rebates are administered through the NYS Clean Heat program, so the certified-contractor requirement applies. The rebate check comes from Central Hudson; NYSERDA sets the overall framework. Checks typically arrive within 5 to 7 weeks of the rebate application being processed.

One detail specific to Central Hudson territory: the ground-source heat pump rebate stacks with the separate NY State Geothermal Credit, a 25% state tax credit on geothermal systems capped at $10,000. A homeowner installing a full-load ground-source retrofit could receive $18,000 from Central Hudson plus up to $10,000 in state tax credit savings, depending on system cost. Before installing, consider weatherization work through Comfort Home; a tighter envelope reduces the heat load and improves heat pump performance year-round. The heat pumps buyer's guide covers the equipment side.

Who qualifies

  • Central Hudson electric service customers in the Hudson Valley region.
  • Heat pump installations must use a NY State certified Clean Heat contractor.
  • Heat pump rebates apply to systems replacing existing full-load heating. Homes where the heat pump serves only partial heating are ineligible for the main tiers.
  • Heat pump water heaters: no contractor certification requirement. You can self-install.
  • Air-source heat pump tiers depend on home size (above or below 1,000 sq ft) and whether an existing oil tank or fossil fuel heating source is removed.
  • Ground-source heat pump rebates require a full-load system designed to handle 100% of the home's heating load.

What you get

Ground-source (geothermal) heat pumps:

  • Full-load heating retrofit, homes over 1,000 sq ft: $18,000
  • New construction: $8,000
  • Additional: 25% NY State tax credit on geothermal systems (up to $10,000)

Air-source heat pumps, single-family homes over 1,000 sq ft:

  • With oil tank or fossil fuel heating removed: $8,000
  • Without removing oil or fossil fuel source: $5,000
  • Upgrade from partial-load to full-load system: $3,000

Air-source heat pumps, apartments or single-family homes under 1,000 sq ft:

  • With oil tank or fossil fuel heating removed: $5,000
  • Without removing oil or fossil fuel source: $3,000
  • Partial-to-full-load upgrade: $1,000

Heat pump water heaters:

  • ENERGY STAR certified units: $1,250
  • Available as an instant rebate at Lowe's via CentralHudsonRebates.com, or as a mail-in rebate with a 5 to 7 week processing time.

All figures above are sourced directly from Central Hudson's program pages, verified May 27, 2026. These are the most granular published rebate amounts found across any utility reviewed.

How to apply

  1. Heat pumps: Use the rebate finder at cleanheat.ny.gov/find-available-rebates to confirm your rebate tier and get certified contractor referrals. Your contractor submits the rebate application. Expect your check within 5 to 7 weeks.
  2. Heat pump water heaters: Purchase an ENERGY STAR certified unit and apply via CentralHudsonRebates.com for a mail-in rebate, or buy through the Lowe's instant rebate program.
  3. NY State geothermal tax credit: Claim the 25% state credit (up to $10,000) on your New York State income tax return for the year the system is placed in service.

How this stacks with other programs

  • Geothermal stack. A Central Hudson ground-source retrofit pays $18,000, and the NY State Geothermal Credit adds 25% of system cost up to $10,000 on your state tax return. This is the largest combined incentive available on any residential install in Central Hudson territory.
  • Air-source sequencing. The air-source tiers are scaled by how much fossil fuel the install displaces. Removing the oil tank moves you to the top tier; sizing the system for full primary heat (rather than partial) keeps you eligible at all. A Manual J load calculation done before equipment selection is what protects the rebate tier.
  • Envelope first. Central Hudson partners with NYSERDA on weatherization. Running Comfort Home air sealing and insulation before the heat pump install reduces the load the system has to carry. A smaller, properly sized heat pump costs less and still qualifies for the same rebate.
  • Solar stack. For solar, Central Hudson customers route through NY-Sun for the upfront incentive and then claim the NY State Solar Tax Credit (25% of out-of-pocket cost, capped at $5,000) on their state return. The federal residential solar credit expired December 31, 2025.
  • Income-qualified. If your household income falls under the state AMI thresholds, EmPower+ can cover envelope and electrification work at little to no cost. Run EmPower+ first if you qualify; the Central Hudson rebates are designed for market-rate customers.

What to ask your contractor

  • Which tier do I qualify for? The answer depends on three variables: home size (over or under 1,000 sq ft), single-family vs. apartment, and whether the install includes oil tank or fossil fuel source removal.
  • Are you on the NYS Clean Heat certified contractor list, and can you submit the rebate application directly to Central Hudson on my behalf?
  • Will the proposed equipment appear on the NEEP cold-climate air-source heat pump list at the design heating temperature for the Hudson Valley? The region sits well within cold-climate territory, and non-NEEP equipment will not hold rebate eligibility.
  • Will you run a Manual J load calculation before selecting equipment? The calc is what proves the system is sized for full-load primary heat, which the rebate requires.
  • For a heat pump water heater: am I better off taking the instant rebate at Lowe's, or buying the unit elsewhere and submitting the mail-in rebate? The dollar amount is the same; only the timing differs.
  • For geothermal: will you subcontract the loop field, or do you drill in-house? The loop field is often the largest single line item and the most common source of schedule slippage.
  • If you remove the oil tank, will you provide written documentation of the removal? Central Hudson requires it for the higher tier.

Common pitfalls

  • Replacing an existing full-load heat pump. Central Hudson does not pay for heat pump replacement. The rebate is for displacing fossil fuel or electric resistance heat, not for upgrading equipment that already qualifies as a heat pump.
  • Partial-home coverage. The heat pump has to serve as the home's primary heating source. A unit installed to heat one room or one floor, with a fossil furnace still doing the rest of the house, does not qualify for the main tiers.
  • Apartment vs. single-family confusion. The two tier schedules are not interchangeable. A duplex unit and a 1,400 sq ft single-family ranch fall in different brackets even when the equipment is identical.
  • Oil-tank-removal claim without documentation. The higher rebate tier requires the oil tank to actually come out, with paperwork. Disconnecting and abandoning the tank in place will not clear the audit.
  • Skipping the state geothermal credit. Central Hudson's $18,000 rebate is filed by the contractor; the 25% state tax credit (up to $10,000) is filed by you on your state return. The contractor will not do this for you, and missing the filing leaves real money on the table.

Important dates

No expiration dates are published for any Central Hudson rebate as of May 27, 2026. Rebate budgets are subject to program-year caps administered through NYS Clean Heat; check the rebate finder for current availability before scheduling work.

Source

NYSERB.com is an independent research site. It is not affiliated with Central Hudson Gas & Electric, the State of New York, or any utility. Verify all program details and incentive amounts directly with Central Hudson Gas & Electric before making any financial decision.

Verified against www.cenhud.com, www.cenhud.com, www.cenhud.com on July 1, 2026.

More Utility Rebates to check

  • National Grid Residential Rebates (NY)National Grid serves upstate NY electric and NYC/LI gas. Heat pump and weatherization rebates run through NYS Clean Heat. Use the cleanheat.ny.gov rebate finder for address-specific amounts.
  • NYSEG Residential Energy Efficiency IncentivesNYSEG residential rebates via NYS Clean Heat: up to $10,000 air-source heat pump, $18,000 ground-source, $1,250 heat pump water heater. $70 + $20 Smart Savings Rewards thermostat.
  • Con Edison Residential RebatesCon Edison offers up to $35,000 for geothermal, $10,000 for air-source heat pumps, $4,000 for weatherization, and $85 for smart thermostats in NYC and Westchester.
  • RG&E Residential Energy Efficiency IncentivesRG&E residential rebates via NYS Clean Heat: up to $10,000 air-source heat pump, $18,000 ground-source, $1,250 heat pump water heater. Smart Savings Rewards thermostat $70 + $20.

See every rebate you qualify for

The eligibility check matches your home against every other New York rebate program in under 90 seconds.

Check Eligibility ›