NYSERDA, NYSEG & National Grid Rebates on Cold Climate Air Source Heat Pumps

Heat Pump Rebates & Incentives in New York — 2026 Guide

Even with the federal tax credit no longer available for new installations, New York State remains one of the most aggressive states in the country for heat pump incentives. NYSERDA, NYSEG, and National Grid are actively offering substantial rebates on Cold Climate Air Source Heat Pumps through the NYS Clean Heat program — and those programs can be stacked together for maximum savings.

Federal Tax Credit — Section 25C

The federal Energy Efficient Home Improvement Credit (Section 25C), which provided up to $2,000 for qualifying heat pump installations, expired for new installations on December 31, 2025. Systems installed in 2026 or later are not eligible for this federal credit.

This change makes acting on available New York State and utility programs more important than ever — those programs remain active and fully funded in 2026.

New York State — NYS Clean Heat (NYSERDA)

Air Source Heat Pump Rebates

NYSERDA’s NYS Clean Heat program is the primary statewide rebate source for qualifying cold climate heat pump installations. Rebate amounts depend on your utility provider, system size, and how much of your home’s total heating load the system covers.

Find specific rebates available for your address at NYS Clean Heat →

Assisted Home Performance / EmPower+

Income-eligible New Yorkers (at or below 80% of area median income) may qualify for no-cost or significantly reduced-cost heat pump installations through the EmPower+ program — including heat pumps, insulation, and air sealing upgrades, up to $10,000 per project for low-income single-family households.

Check current EmPower+ income guidelines at NYSERDA.ny.gov →

NYSEG, RG&E & National Grid — Utility Rebates

NYSEG, RG&E, and National Grid customers can access additional rebates on qualifying cold climate air source heat pumps and heat pump water heaters through the NYS Clean Heat program. Incentives are available to electric customers, or customers with combination gas and electric accounts, who replace an existing furnace, boiler, or water heater.

• Available to NYSEG, RG&E, and National Grid electric customers
• Applies to systems meeting NYS Clean Heat cold climate efficiency standards
• Heat pump water heaters are also eligible for utility incentives
• Multiple single-zone systems on one property may each qualify separately — ask us

Rebate amounts change as programs are updated. Visit NYSEG’s current NYS Clean Heat page for the latest figures, or contact us — we confirm current amounts with every free estimate.

Financing — NYS Clean Heat Low-Interest Loans

With the right financing, households currently heating with oil, propane, or resistance electric can often see positive monthly savings from day one — even while making loan payments. New York State offers multiple low-interest loan options specifically designed for heat pump installations.

Learn more about all available NYS residential financing options →

The Bottom Line for 2026

New York State continues to make Mitsubishi cold climate heat pump installations more affordable than almost anywhere in the country. While the federal 25C tax credit has ended, NYSERDA Clean Heat rebates, NYSEG and National Grid utility incentives, and low-interest state financing still make the economics very compelling — especially when programs are properly stacked.

When we come out for your free estimate, we’ll give you a complete, up-to-date breakdown of every incentive available for your specific home, utility, and household income — so there are no surprises and no money left on the table.