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New York Energy Resource Bureau
An independent homeowner guide to NY energy incentives
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NYSEG Residential Energy Efficiency Incentives

Administered by: New York State Electric & Gas (NYSEG), an Avangrid utility Status: Active in 2026 Verified: May 27, 2026 against NYS Clean Heat Rebate Finder and NYSEG-related search results Source quality: Secondary

What it is

NYSEG serves a patchwork of upstate New York: parts of the Hudson Valley (Dutchess, Ulster, northern Westchester), the Southern Tier around Binghamton and Elmira, Capital Region edges, the Auburn area, and pockets along Lake Ontario. Customers may be on electric service, gas, or both.

Heat pump incentives for NYSEG customers run through the NYS Clean Heat program. NYSEG is a sponsoring utility, so the rebate amount is set by the Clean Heat tier for your address. NYSEG also runs a smart thermostat program and an insulation and air sealing rebate that sit outside Clean Heat.

The NYSEG public site uses a JavaScript portal that often times out. The reliable path is the address-based finder at cleanheat.ny.gov/find-available-rebates, which returns your exact heat pump rebate tier and a list of certified contractors.

Who qualifies

  • NYSEG electric or combination electric-and-gas customers in NYSEG territory
  • Heat pump rebates: one- to four-unit buildings replacing an existing furnace, boiler, or water heater with eligible heat pump equipment
  • Heat pump installations must use a NYS Clean Heat Participating Contractor
  • Smart Savings Rewards: residential or small business electricity customers with an eligible internet-connected thermostat controlling central AC
  • Insulation and air sealing rebate: NYSEG customers with eligible weatherization work. Income-eligible households should look at EmPower+ first, which covers the same work at no cost

What you get

Heat pump rebates (via NYS Clean Heat, NYSEG tier):

  • Air-source heat pumps: up to $10,000
  • Ground-source (geothermal) heat pumps: up to $18,000
  • Heat pump water heaters: $1,250, available as an instant rebate at Lowe's and Home Depot at checkout, or as a mail-in rebate after installation

Exact air-source and ground-source amounts depend on home size, full-load versus partial-load configuration, and whether a fossil fuel heating source is being removed. The Clean Heat finder returns your address-specific number.

Smart Savings Rewards (smart thermostat):

  • Enrollment incentive per eligible thermostat: $70 e-gift card
  • End-of-season participation bill credit: $20 per household

Insulation and air sealing rebate:

  • Whole-home insulation and air sealing: up to $2,000, applied as an instant rebate on the contractor's invoice

The insulation rebate is separate from Comfort Home weatherization. They cover overlapping work and are not designed to double-pay the same line items.

How to apply

  1. Heat pumps: Use cleanheat.ny.gov/find-available-rebates to confirm your NYSEG rebate tier and pull a certified contractor list. The contractor files the rebate paperwork.
  2. Heat pump water heater: Buy a qualifying ENERGY STAR unit at Lowe's or Home Depot and apply the rebate code at checkout. For self-installs, use the mail-in form.
  3. Smart Savings Rewards: Enroll your thermostat at thermostatrewards.com/nyseg for the $70 gift card. Stay enrolled through summer cycling for the $20 bill credit.
  4. Insulation and air sealing: Work with a contractor who applies the rebate as an instant discount. Call NYSEG to confirm the current participating contractor list.

How this stacks with other programs

  • NYSEG heat pump + Comfort Home (northern Westchester). Most of northern Westchester is NYSEG territory, not Con Edison. Comfort Home publishes a $1,000 non-Con-Edison bonus on top of its standard package amount for this case. Tighten the envelope through Comfort Home first, then install the heat pump through the NYSEG Clean Heat tier.
  • NYSEG heat pump + EmPower+. Income-eligible NYSEG customers can get free weatherization and electrification through EmPower+. Sequence EmPower+ before the heat pump install; a tighter envelope means a smaller, cheaper heat pump.
  • NYSEG ground-source heat pump + NY State Geothermal Credit. The state's 25% geothermal income tax credit (up to $5,000) layers on top of the NYSEG Clean Heat rebate.
  • NYSEG customer + solar. Statewide programs cover solar regardless of utility. NYSEG customers qualify for NY-Sun and the NY State Solar Tax Credit.
  • NYSEG + federal tax credits. The federal 25C and 25D credits apply on top of NYSEG and Clean Heat incentives. Ask a tax preparer whether the rebate reduces the basis for the federal credit.

What to ask your contractor

  1. Are you a NYS Clean Heat Participating Contractor under the NYSEG tier? Ask for the contractor ID.
  2. For my address and home size, what is the exact Clean Heat rebate, and is the system sized full-load or partial-load? The tier depends on the answer.
  3. For insulation work, are you submitting under the NYSEG insulation rebate, Comfort Home, or EmPower+? It can only go through one.
  4. Are you applying the heat pump water heater instant rebate at point of sale, or am I submitting a mail-in form?
  5. If I am in Westchester County, are you claiming the Comfort Home non-Con-Edison bonus on my behalf?

Common pitfalls

  • Confusing NYSEG with RG&E. Both are Avangrid utilities, but they cover different territories with separate workflows. If you have an RG&E meter, see RG&E Rebates. The Clean Heat finder routes you correctly by address.
  • Confusing NYSEG with PSEG Long Island. Most of Long Island is PSEG LI. NYSEG's LI footprint is limited; check your bill before assuming.
  • Using the NYSEG portal as the lookup tool. Pages at nyseg.com/smartenergy/... are slow and frequently time out. The Clean Heat finder is the working path for heat pump amounts; thermostatrewards.com/nyseg is the working path for the thermostat program.
  • Assuming a standalone NYSEG heat pump rebate still exists. NYSEG and RG&E sunset their separate residential heat pump rebates in 2025. All heat pump incentives now flow through NYS Clean Heat. If a contractor quotes a NYSEG-branded heat pump rebate outside Clean Heat, ask which program they are actually claiming under.
  • Westchester homeowners assuming they qualify for Con Edison rebates. Northern Westchester addresses on NYSEG service do not qualify for Con Edison's weatherization rebate. They qualify for the Comfort Home $1,000 non-Con-Edison bonus instead.
  • Stacking insulation rebates twice. The NYSEG insulation rebate, Comfort Home, and EmPower+ cover overlapping work. Each line item on the contractor invoice can only be claimed once.

Important dates

  • NYSEG and RG&E standalone residential heat pump rebate programs ended June 30, 2025. Heat pump rebates from that date forward run through NYS Clean Heat.
  • No expiration date is published for the Smart Savings Rewards thermostat program or the insulation and air sealing rebate as of May 27, 2026.
  • Clean Heat block status and budget cycles are tracked on the program-level NYS Clean Heat page.

Source

The heat pump tiers ($10,000 air-source, $18,000 ground-source, $1,250 heat pump water heater) reflect the NYSEG tier under NYS Clean Heat as reported across NYSEG and NYSERDA-aligned sources on May 27, 2026. The NYSEG portal would not respond to automated fetches; confirm the address-specific number through the Clean Heat finder before signing a contract.


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


Verified against www.nyseg.com, cleanheat.ny.gov, thermostatrewards.com on May 27, 2026.

More Utility Rebates to check

  • PSEG Long Island RebatesPSEG Long Island offers up to $1,200 for heat pump water heaters and $100-$130 for smart thermostats on Long Island. Free home energy assessments available.
  • 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.
  • 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.
  • Central Hudson Residential RebatesCentral Hudson pays $18,000 for ground-source heat pump retrofits, $8,000 for air-source with oil tank removal, and $1,250 for heat pump water heaters in the Hudson Valley.

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