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

NYS Clean Heat / Heat Pump Program

Administered by: New York State Energy Research and Development Authority (NYSERDA), in partnership with utilities statewide Status: Active in 2026 Verified: May 27, 2026 against NYS Heat Pump Program, NYSERDA and CleanHeat.NY.Gov Rebate Finder Source quality: Primary

What it is

NYS Clean Heat is the main state incentive for switching to heat pumps. NYSERDA runs it with utility partners across New York. The program covers air-source heat pumps, geothermal (ground-source) systems, and heat pump water heaters used for residential space and water heating.

The rebate amount depends on your utility territory. Con Edison territory (New York City and Westchester) publishes the highest figures: up to $35,000 for a geothermal system, and up to $10,000 for an air-source heat pump used as your primary heating source. Central Hudson has its own published tiers on the Central Hudson Residential Rebates page. Long Island customers should check PSEG Long Island Rebates. Other utilities participate through the same statewide program; you get the exact figure for your address from the rebate finder.

One requirement holds regardless of which utility serves you: the contractor must be certified through NYS Clean Heat. An uncertified installer means no rebate, no exceptions. The rebate finder at cleanheat.ny.gov also returns a list of certified contractors for your area.

Who qualifies

  • New York State homeowners and building owners replacing fossil fuel heating with a heat pump system
  • Existing buildings only (not new construction in most utility territories; check your utility's specific rules)
  • Equipment installed by a NY State certified Clean Heat contractor
  • Heat pump serves as the primary heating source for the home (partial-load systems are generally not eligible)
  • Rebate amounts and specific eligibility rules vary by utility territory

What you get

The rebate finder at cleanheat.ny.gov gives you the exact number for your address. Published figures from Con Edison territory show what's possible at the top of the range:

  • Geothermal (ground-source) systems: up to $35,000
  • Air-source heat pumps (primary heating, single-family): up to $10,000
  • Heat pump water heaters: amounts vary by utility territory

Central Hudson publishes the most specific tiers of any utility. See the Central Hudson Residential Rebates page for those figures.

NYS Clean Heat also pairs with NYSERDA financing: On-Bill Recovery loans, Smart Energy loans, and Companion loans cover what the rebate doesn't.

How to apply

  1. Go to cleanheat.ny.gov/find-available-rebates and enter your address. The tool shows your specific rebate amounts and a list of certified contractors in your area.
  2. Get at least two quotes from certified Clean Heat contractors. Do not sign with an uncertified contractor.
  3. Your contractor submits the rebate application on your behalf after the system is installed and passes inspection. You do not file paperwork directly with NYSERDA.
  4. The rebate is paid to you or applied as a credit, depending on how your contractor structures the agreement.

How this stacks with other programs

  • With Comfort Home Program (envelope first): Air-sealing, insulation, and weatherization go in before the heat pump is sized. A leaky house demands a larger system, which costs more and runs less efficiently. Sequence Comfort Home first, then have your contractor run a Manual J load calc against the tightened envelope.
  • With NY State Geothermal Energy System Credit (ground-source only): A ground-source heat pump qualifies for both the Clean Heat utility rebate and the 25% state geothermal tax credit, capped at $10,000 for systems placed in service on or after July 1, 2025. Air-source heat pumps do not qualify for the geothermal credit. The state credit is calculated on net cost after the rebate.
  • With EmPower+ (income-qualified): Households at or below 60% of State Median Income can layer EmPower+ on top of Clean Heat. EmPower+ may cover equipment costs and weatherization that the standard Clean Heat rebate does not reach. Apply for EmPower+ eligibility before scheduling the install.
  • With the Appliance Upgrade Program: A heat pump dryer runs through the appliance program, not Clean Heat. Clean Heat covers space heating and water heating only.
  • With the federal credit: The federal Residential Clean Energy Credit (§25D), which covered geothermal at 30% with no cap, expired December 31, 2025. For systems placed in service in 2026 or later, the state geothermal credit is the only tax-credit lever on a residential ground-source install.

For more on equipment selection and the order of operations on a heat pump project, see the Heat pumps buyer's guide.

What to ask your contractor

  • Are you certified through NYS Clean Heat, and can you send me your contractor ID? An uncertified installer disqualifies the rebate.
  • Is the specific model you are quoting listed on the NEEP cold-climate air-source heat pump product list? In zip codes north of the lower Hudson Valley, cold-climate certification matters.
  • Did you run a Manual J load calculation for my house, or did you size the system off square footage? Square-footage sizing routinely produces oversized equipment.
  • What is the backup heat plan on the coldest design day? Electric resistance strips, a dual-fuel setup with the existing furnace, or full-load heat pump capacity — write the answer down.
  • Will the rebate come off the install invoice as a discount, or be paid to me after inspection? Either is allowed; you need to know which you are agreeing to.
  • What model and serial numbers will appear on the rebate paperwork? They should match the invoice exactly.
  • Are you filing the Clean Heat application on my behalf? The standard answer is yes; confirm before signing.
  • For a ground-source install: who is drilling the loop field, and is that subcontractor covered under your workmanship warranty?

Common pitfalls

  • Uncertified contractor. The most common denial. Only Clean Heat–certified contractors can file for the rebate. Confirm certification on cleanheat.ny.gov before signing a contract.
  • Oversized equipment. Contractors who skip the Manual J routinely quote systems one or two tons larger than the house needs. Oversized heat pumps short-cycle, dehumidify poorly, and waste the efficiency gain you are paying for.
  • Skipping envelope work. Installing a heat pump in a leaky, under-insulated house produces a larger, more expensive system that still leaves cold rooms. Run Comfort Home (or comparable air-sealing and insulation) first, then size the heat pump against the tightened envelope.
  • No auxiliary heat in upstate climates. In the North Country, Adirondacks, and parts of the Southern Tier, design temperatures fall well below the rated capacity of a standard heat pump. A backup plan is required: cold-climate-rated equipment, electric resistance strips, or a dual-fuel setup. Without one, you get cold rooms in January.
  • Standard-climate equipment in cold-climate zip codes. Quoting a baseline air-source heat pump in Plattsburgh is not the same job as quoting one on Long Island. Ask for the NEEP cold-climate list reference before signing.
  • Partial-load installs. Most utilities require the heat pump to serve as the primary heating source. A heat pump added as a supplement to an existing fossil furnace often does not qualify for the full rebate. Confirm the utility's specific rule before sizing the job.

Important dates

No published program-end date as of May 27, 2026. Funding is allocated annually through NYSERDA and utility rate cases. Rebate amounts can change if program budgets shift. Programs like this have closed midyear before.

Source

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

Verified against www.nyserda.ny.gov, cleanheat.ny.gov, www.coned.com on July 1, 2026.

More New York State (NYSERDA) to check

  • Appliance Upgrade Program (NYSERDA)NYSERDA's Appliance Upgrade Program covers heat pump clothes dryers (up to $840) plus accompanying electrical upgrades (panel up to $4,000) for income-eligible NY households.
  • Drive Clean Plus (Income-Eligible EV Rebate)An income-qualified track within NYSERDA's Drive Clean EV rebate framework. Standalone program documentation is pending verification. See Drive Clean Rebate for the active universal version.
  • Drive Clean Rebate (NYSERDA EV Point-of-Sale Rebate)NYSERDA's Drive Clean Rebate pays up to $2,000 at the dealer when you buy or lease an eligible new electric vehicle in New York. Not income-limited. Tiered by EV range.
  • NY Green BankNY Green Bank is NYSERDA's wholesale clean-energy lender. It finances developers, multifamily owners, and other lenders — not individual homeowners directly. Homeowner loans run through NYSERDA Residential Financing.

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