Incentives & Financing

Energy efficiency upgrades and new heating and cooling systems are major financial investments in your home or building, but they are good investments, reducing your energy usage and keeping you and your family more comfortable! 

There are incentives for all income levels. Some are specifically for low-to-moderate income households, others are for market-rate households, and many apply to both!   Your installers will help you apply for many of these programs, but you may have to apply for utility rebates on your own. Contact Lindsay at our HeatSmart CNY Hotline 833-315-HEAT if you need help.

There are incentives for large buildings too! Check out our page on incentives for large systems, including commercial, multifamily, and nonprofits. 


NEW Utility Incentives (replaces NYSERDA program)

As of April 1, 2020, NYSERDA has transferred their prior heat pump incentive programs to the utilities.  Overall, amounts have generally remained the same.  There is increased funding for heat pump water heaters!  These incentives may only be used for buildings occupied year-round, and must use an accredited contractor.  All HeatSmart CNY contractors are eligible.


  • Contractors will do the paperwork for you

  • All fuel types (including fracked gas) may switch to heat pumps

  • All building types - residential, commercial, multifamily, nonprofit, industrial, etc. are included.  The project may be a retrofit or new construction.

  • Calculations are based on heating capacity, rather than cooling capacity, providing better incentives for equipment that heats most efficiently at cold temperatures.

$$$ in National Grid, NYSEG, and RG&E Service Territories

Heating For Most Homes & Buildings (<300,000 BTUH heating load)

Ground Source or "Geothermal" Heat Pumps (GSHPs)

$1500 / 10,000 BTUH

Cold Climate Air Source Heat Pumps (ccASHPs) $1000/ 10,000 BTUH (full load) or $500/outdoor unit (partial load)

Heating for Large Buildings (>300,000 BTUH heating load)

Geothermal or air source heat pumps or VRF systems Custom incentive: $80 / MMBTU energy savings



Water heating:

Air Source Heat Pump Water Heaters (HPWH) <120 gallons $700/unit
Commercial air source HPWH >120 gallons $80/MMBTU annual energy savings
Ground Source HPWHs $900/unit
Ground Source Heat Pump desuperheater $100/unit
BONUS for ccASHP + HPWH installation $250

More details from NYSEG / RG&E

Application Form (contractors usually submit this)

List of approved contractors

Are you an HVAC contractor? Become part of the NYS Clean Heat Statewide Program. 


Additional $$$ for Low-to-Moderate Income Households 

If your household's annual income is below 120% of the area median income there are additional resources available for you!

EmPower New York

EmPower will cover 100% of the costs for energy efficiency upgrades like air sealing and insulation, up to $8000, for households that are at 60% or less of the state median income.  If you qualify for HEAP, you qualify for this, as well as the next three programs, which can all be stacked!

Image of income levels qualifying participants for Empower.  The official numbers in a machine-readable table can be found by visiting the link in the preceding paragraph.

Assisted Home Performance with Energy Star

Assisted Home Performance with Energy Star pays for 50% of the costs of energy efficiency upgrades, including heat pumps in some cases!   

NEW in 2020 - Eligibility and project funding limits increased! 

Effective July 13, 2020 - December 31, 2020, this program is now available to households earning up to 120% of the area median income. NYSERDA will match up to $5000 of your funds, for a project total of $10,000. 

Normally the amount is up to $4000, for households that are at 80% or less of the area median income.  Qualified 2-4 unit multifamily residences qualify for up to $8000. Our partner installers will help you access these.

Income Limits for 120% of Area Median Income
County / Household Size Less than
1 person $66,825 for Madison, Onondaga, and Oswego Counties $59,856 for Cayuga and Cortland Counties
2 people $78,288
3 people $96,720
4 people $115,128
5 people $133,560
6 people $151,968
7 people $156,040
8 people $173,720


HeatSmart CNY Affordability Grant

This is available only through the HeatSmart CNY campaign.  We are offering $7500 per home for geothermal or $2000 per home for air source heat pumps, and $350 for heat pump water heaters to households with gross incomes below 120% of the area median income (AMI).  To apply, fill out & submit the NYSERDA Residential Household Income Screening Application. Once verified, your installer can apply the grant to your project!

Finger Lakes Climate Fund

Available on a per-case basis through our installers. Up to $2500 to help make up the difference needed to install heat pumps and insulation in homes throughout the Finger Lakes and Central New York.  Funding comes from local people offsetting their carbon emissions!

Insulation $$$ for Market-Rate Households

Do you want your family to be more comfortable in your home, lower your energy bills, and get on the path to a clean energy future? Save money and improve your home’s comfort year-round with “seal and insulate” packages. NYSERDA’s Comfort Home program makes it easy to make smart investments for a more efficient home now and more affordable clean heating options in the future. For more information, visit

Comfort Home Seal & Insulate Packages

This NYSERDA pilot program provides between $500-$4000 for energy efficiency improvements for your home, depending on the package chosen. Read the fact sheet [PDF] for more details. 

Comfort Home packages may include:

  • sealing air leaks;
  • insulation upgrades for ceilings, floors, and walls; and
  • high performance windows

You can access this program through HeatSmart CNY - select "Comfort Home" when you enroll and choose Halco, Snug Planet, or Simply Installs as your installers. 


Tax Incentives

Federal Taxes

Federal Residential Renewable Energy Tax Credit for Geothermal

Under the Bipartisan Budget Act of 2018, the renewable energy tax credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems. 

Tax Credit: 

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Expires:  December 31, 2021

Details:  Existing homes and new construction qualify.  Both principal residences and second homes qualify. Rentals do not qualify. 

Nonbusiness Energy Property Credit 

Tax Credit:

  • $300 for Air Source Heat Pumps and Heat Pump Water Heaters

  • 10% of costs of insulation.

  • This credit is limited to a total combined credit limit of $500 for all tax years after 2005.


Property Tax Exemption

Property tax exemption for residential energy efficiency upgrades including heat pumps


With proper financing, households on oil, propane, and resistance electric can realize significant out-of-pocket savings on their annual energy costs from day one.  

Image showing table of financing options.  Details given below photo.


Green Jobs Green New York: On-Bill Recovery and Smart Energy Loans

Note: The 0% interest GJGNY loans announced in early June have already been fully claimed. While we are advocating for more funds to be added, whether or not NYS will do so remains to be seen.  In the meantime, get quotes, and have your dream project ready to take advantage of the funding if it becomes available again!  Or consider the usual interest rates:

New York State offers two loans for energy efficiency (including heat pumps) and renewable energy projects through their Green Jobs Green New York program. On Bill Recovery includes the cost of the upgrades right on your energy bill and requires a cost-effectiveness test to be passed.  On-Bill Recovery can be passed on to the next homeowner if it is not paid off by the time you sell your home. Smart Energy loans have their own billing. Lower interest rates are accessed through enrolling in autopay. Get more details and check qualification for interest rates.  Talk to your installers about these, they will help you apply. All loans must be paid back within 15 years.  Learn more here. 

Interest Rates Available Through NYS for residential energy efficiency and renewable energy
Area Median Income  On-Bill Recovery or Smart Energy auto-pay Smart Energy direct billing (in the mail)
Up to 120%** 3.49% 3.99%
Over 120% 6.99% 7.49%

**NEW! Geographic-based eligibility for reduced GJGNY interest rates: If you live in one of the census blocks pictured below, you can qualify for reduced interest rates without having to prove your income.  This makes it easier for self-employed individuals or others with hard-to-document incomes to access these reduced interest rates. Enter your address here to see if your address qualifies for the 3.49% rate.

Reduced interest rates without having to prove household income are available in low-to-moderate income census blocks.  This map shows that nearly 74% of New York falls into these areas.

Good credit? Those with credit scores of 780 or above do not have to meet cost-effectiveness or debt-to-income ratio tests and income documentation is not required (unless applying for under 120% AMI interest rates). This is a new change to the program as of 2019.

Low credit score? This financing is available for credit scores down to 540.

EnerBank USA

Many installers offer financing options through EnerBank USA.  The GeoSmart loan finances up to $85,000 with terms up to 20 years at 4.99%.  They also offer a 12-month 0% interest same-as-cash loan to cover the amount of the expected federal tax credit. 

Home HeadQuarters Green CNY Loan

Up to $20,000 with terms of 7-10 years at 5.24%.  Contact Home HeadQuarters for more info. 

Other Resources

Formerly available incentives

For Rural Farms and Small Businesses: USDA Funding