Financing & Incentives in New York for Home Upgrades

Financing for Energy-Efficient Home Improvements

One of the main concerns homeowners have when considering a heat pump or other energy-efficiency improvements is the upfront cost. However, there are financing programs that can help make the purchase and installation of these systems more accessible.

New York State offers low-interest loan options to help residents finance energy improvements in their homes. These improvements may include heat pumps, insulation, air sealing, solar panels, heat pump water heaters, and other upgrades that can help reduce energy use. The goal of these programs is to help homeowners improve home comfort, reduce energy costs, and pay for upgrades through more flexible options.

On-Bill Recovery Loans

One available option is an on-bill recovery loan. With this type of loan, monthly payments are integrated directly into the customer’s utility bill — no separate additional bill each month.

This loan structure is designed so that monthly payments do not exceed the estimated average monthly energy savings. In other words, you can pay for the energy improvement using part of the savings generated by lower energy consumption.

Residential Financing Programs

Before accessing a loan, homeowners are usually required to complete a home energy assessment. This assessment helps identify where energy is being wasted and which improvements may offer the best results. Based on that assessment, different programs may be considered depending on the home, income level, location, and type of upgrade needed.

Comfort Home Program

The Comfort Home Program focuses on improving home comfort through air sealing and insulation packages. Many homes lose energy through air leaks, insufficient insulation, or inefficient windows — causing heating and cooling systems to work harder than necessary.

The process begins with a free consultation with a trained professional who evaluates the home and helps select the most appropriate package of improvements, including available discounts and financing options. Packages may include:

• Air leak sealing
• Insulation improvements for ceilings, floors, and walls
• High-performance windows

Comfort Home Load Reduction Packages

The home must meet the conditions of the complete package in order to be eligible for the incentive.

Multiple Projects Over Time

The Comfort Home Program allows homeowners to complete more than one project over time:

• Customers who received incentives for a package within the last year may be eligible for an additional $1,000 for another package.
• Customers who received incentives for a package more than one year ago may be eligible for an additional $2,000 for another package.

EmPower+

The EmPower+ program helps income-qualified homeowners save energy and money. It is especially focused on low- and moderate-income households, and aims to improve energy efficiency by identifying where energy is being wasted and what improvements can be made.

Through EmPower+, eligible New Yorkers may receive a no-cost comprehensive home energy assessment. The program is directed to owners and renters of one- to four-family homes who meet the income requirements.

Benefits of EmPower+

The program may include no-cost direct-install improvements and financing for:

• Air sealing
• Insulation
• Heat pumps
• Heat pump water heaters
• Electrical wiring upgrades
• Health and safety improvements

Available EmPower+ Incentives

Incentives are based on household income eligibility and the types of improvements included in the project.

• Low-income single-family households: May be eligible for free energy-efficiency improvements — up to $12,000 per project (upstate) or $14,000 per project (downstate).
• Moderate-income single-family households: May be eligible for an incentive covering 50% of improvement costs — up to $6,000 per project (upstate) or $7,000 per project (downstate).

HEAR Incentives — Home Electrification and Appliance Rebates

The HEAR program provides additional incentives for New Yorkers who meet income requirements — these amounts stack on top of your base EmPower+ incentive, and can bring the combined total to $24,000 or more for qualifying households.

How EmPower+ Works

1. 1
   Homeowner submits the EmPower+ application.
2. 2
   Gather required documents before beginning the process.
3. 3
   Create a profile in the MyEnergy portal and complete the program application.
4. 4
   Once approved, receive an email with the EmPower+ contractor’s contact information.
5. 5
   Contractor meets with the homeowner to complete the home energy assessment.
6. 6
   After assessment, contractor sends energy improvement recommendations for review.
7. 7
   After project approval, the contractor provides approved incentive amounts and schedules the work.

NYSEG & National Grid — Upstate NY Clean Heat Programs

NYS Clean Heat Rebates Through Your Utility

Upstate New York homeowners served by NYSEG or National Grid can access heat pump rebates through the statewide NYS Clean Heat program. Rebates are available for qualifying cold-climate heat pump installations and are administered through NYSERDA’s participating contractor network — meaning your rebate is handled as part of the installation process.

• Available to electric customers, or customers with combined gas and electric service
• Rebates apply to qualifying air-source heat pumps, ground-source systems, and heat pump water heaters
• Can be combined with NYSERDA Clean Heat rebates and low-interest state financing

Green Jobs Green New York (GJGNY) — Low-Interest Financing

NYSERDA’s GJGNY program offers low-interest financing to help New York residents cover the cost of qualifying energy improvements, including heat pump installations. This financing option is available regardless of utility provider and can be used alongside rebates from NYS Clean Heat and EmPower+.

• Low monthly payments structured around your energy savings
• Available for energy-efficient systems including Mitsubishi heat pumps
• Can be used to fill any remaining cost gap after rebates are applied

NY-Sun: Solar Energy for Homes, Businesses & Communities

The NY-Sun program is designed to make solar energy more accessible in New York through incentives and a network of qualified installers. Solar energy can help reduce electricity costs and, when combined with heat pumps, may further strengthen energy savings.

Types of Solar Energy

• On-site solar: Homes, businesses, multifamily buildings, and municipalities install solar systems on their properties to generate their own renewable energy.
• Community solar: Renters, homeowners, businesses, and other customers benefit from solar energy generated within New York State — without installing panels directly on their property. Ideal for those who cannot install panels on their roof.

NY-Sun also allows homeowners to potentially combine New York State tax credits with federal solar tax credits. The federal Investment Tax Credit (Section 25D) remains active at 30% through 2032 for qualifying solar installations.

New York State Clean Heat

The New York State Clean Heat program offers incentives to install heat pumps — a more efficient heating and cooling option that eliminates the use of fossil fuels inside the home. Loans can be used to cover the purchase and installation costs of:

• Air-source heat pumps
• Ground-source heat pumps
• Heat pump water heaters

Why Heat Pumps Work Best with Whole-Home Efficiency

Installing a heat pump can be an excellent decision, but the best results are achieved when the system is combined with a properly sealed, insulated, and evaluated home. If a house has many air leaks or insufficient insulation, any heating or cooling system will have to work harder to maintain the desired temperature.

That’s why a home energy assessment is recommended before installing or updating a system. Important improvements may include:

• Air leak sealing
• Better insulation in attics, walls, and floors
• Window upgrades
• Electrical system review
• Installation of efficient heat pumps
• Health, safety, and ventilation improvements

How to Choose the Right Path for Your Home

Every home is different. Some homes may need insulation and air sealing first. Others may already be ready for a heat pump. In other cases, it may make sense to combine several improvements: an energy assessment, electrical upgrades, windows, insulation, and an efficient heating and cooling system.

That’s why the most recommended first step is to complete an energy assessment or consult with a qualified contractor. This guidance helps identify the real needs of your home and review which programs, incentives, or financing alternatives may be available.

An Investment in Comfort, Savings & a Cleaner Future

Heat pumps represent a modern solution for heating and cooling a home year-round. Their ability to provide both heating and cooling, their energy efficiency, zoning control, safety, and low maintenance make them an attractive alternative for many families.

Financing and incentive programs available in New York can help make these upgrades more accessible. Programs such as Comfort Home, EmPower+, GJGNY low-interest financing, NYSEG and National Grid Clean Heat, NY-Sun, and New York State Clean Heat offer different paths to improve home efficiency, reduce costs, and move toward cleaner technologies.

Investing in a heat pump and energy-efficiency improvements is not only a decision to save money — it is also a way to increase family comfort, protect your home, and contribute to a more sustainable energy future.