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Funding Helps Homeowner Switch from Expensive Oil to Air Source Heat Pumps

A small green house in upstate NY with gardens and an old wood stove pipe coming out of the roof that is now heated and cooled with cold climate air source heat pumps.Tully, NY

Square Footage: 1,512
Year Built: 100+ years old
Annual Energy Cost: Before (heating and hot water only): $1,877/year | After (heating and hot water only): $710/year estimated

While Katherine’s oil furnace was working adequately, she was growing increasingly concerned about not only the high cost, noise, and dust, but also the impact of burning oil on her carbon footprint. Adding cooling would also improve the comfort of her home year-round. After learning she would qualify for additional support from the EmPower NY program for energy-related solutions, Katherine began working with Halco to find a solution that would meet her needs.

Installation and Energy Details

Prior Energy system: Oil Furnace and Wood Stove, Electric Water Heater, no cooling system

Prior Insulation or Sealing: Some insulation in the basement

New Energy System: 3 ton Air Source Heat Pump with Three Indoor Floor-Mounted Units, Heat Pump Water Heater

New Insulation or Sealing: Walls and roof insulation recently added

System Specifications:

  • ASHP: 3-ton LGRED ductless heat pump with three floor- mounted indoor units
  • HPWH: State 50 gallon water heater

Net Zero? No


  • Through working with Halco and HeatSmart CNY, Katherine learned that at her income level, the combination EmPower NY, the NY Clean Heat Program, and a new demonstration pilot from NYSERDA offered her the possibility of getting off of oil, adding cooling, and saving money on her energy bills at no cost. While Halco was originally concerned that the scope of her project might exceed the combined program incentive limits, they worked closely with Katherine to bring project costs down and make sure that the system could be installed in the unusual configuration of her home. “Good communication is really necessary in something dealing with your home. They came up with alternate methods, asked me my opinion, and the project was completed without incident,” Katherine said. Katherine’s new air source heat pump has been running well since installation. “The heat from this system feels somehow softer and more constant than the old furnace—and it’s not as noisy.” Moreover, Katherine is very pleased to be off of oil for good. “I really felt that it was destructive to the planet to be using fuel oil. And I don’t have to worry about running out anymore.”

Motivation for Heat Pump Technology


Case Study: Burns

Cost Category Initial Cost Incentives Final Cost
Air Source Heat Pump (including electrical upgrades) $18,400 NYSERDA Heat Pump Demonstration Project: $14,300 $0
National Grid: $4,100
Heat Pump Water Heater $3,733 National Grid: $950
EmPower NY: $2,783

More photos

A rectangular white indoor floor heat exchanger for a cold climate air source heat pump, with plants on a shelf above it. An image of an older homeowner smiling with the outdoor units for her cold climate air source heat pump A cold climate air source heat pump low wall unit mounted under an eave next to a dresser in a bedroom