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.

For Low-to-Moderate Income Households (<80% AMI)

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, 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.

80% Area Median Income maximum income
Household Size

Gross Annual Income

1 person

< $44,550 (Madison, Onondaga and Oswego Counties)   

or < $39,904 (Cayuga and Cortland Counties)

2 people < $52,192
3 people < $64,480
4 people < $76,752 
5 people < $89,040
6 people < $101,312
7 people < $104,027
8 people < $115,813
9 people < $127,600
10 people < $139,387

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 80% of the area median income (AMI). 

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!

For Market-Rate Households

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.

Comfort Home packages may include:

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

To access this program, select "Comfort Home" when you enroll and choose Halco or Snug Planet as your installers. 

Heat Pump Incentives For Everyone!


Federal Residential Renewable Energy Tax Credit

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. 

For Rural Farms and Small Businesses: USDA Funding

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

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.

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.  It is always cheaper overall to pay up front, but not everyone has the luxury of doing so.  Here are options to consider:

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


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

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.

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. 

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