Former Heat Pump Incentives

These programs ended / combined into the current incentives on March 31, 2020. 

New York State / NYSERDA

The New York State Energy Research and Development Authority (NYSERDA) has two major incentives for heat pumps and two programs to help with affording insulation and air sealing. 

Save a ton! Many incentives are given "per ton" of the heating and cooling system, an oldfangled but still widely used term defined as the amount of energy it takes to melt a ton of ice. It is a conventional measurement for a home's heating or cooling needs.  Don't worry, you do not need to figure out this number yourself!  Installers are experts at determining this number. Most homes are three to five tons. 

Geothermal Heat Pump Rebate

$1500/ton. This incentive is expected to last through the end of March 2020, after which the utilities are expected to run the incentive programs. 

Air Source Heat Pump Rebate

NYSERDA is offering $1000/ton for "whole home" cold climate systems that meet 90-120% of a home's heating needs. Ask your installers about this incentive!  This incentive is expected to last through the end of March 2020, after which the utilities are expected to run the incentive programs.


National Grid's rebates are per ton, and NYSEG / RG&E have flat rebate amounts. Most homes are 3-5 tons.

National Grid

National Grid incentivizes geothermal and air source heat pumps, and heat pump water heaters for electric-only customers who do not have natural gas. These rebates range from $200-400/ton with a maximum of $1500, based on the energy efficiency of the specific equipment. Visit their incentive page or download their application

From National Grid re: COVID-19:

National Grid will continue to provide incentives for heat pump applications where equipment has already been installed through our Electric Heat Initiative. As the NYS Clean Heat Statewide Heat Pump Program launches on April 1, we are discouraging all heat pump installations and on-premise activity other than emergency services.  (3/26/2020)

Chart of National Grid incentives for heat pumps. Total incentive amount not to exceed $1,100 for ASHP or $1,500 for GSHP. Heat Pump water heaters get $300


NYSEG and RG&E provide incentives up to $1050 for cold climate air source heat pumps and $500 for heat pump water heaters. Visit their incentive page or download their application. A couple of details to note: 1) this is retroactive to the beginning of 2019, and 2) if you have multiple single-zone systems installed, according to NYSEG's energy efficiency hotline, simply submit an application for each one. 

Chart of incentives available through NYSEG and RG&E.  Basic cold climate Air Source heat pump incentive is $450; multizone systems get an extra $200 per indoor head. Heat pump water heaters get either $100 or $500, with more money for higher efficiency.