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! Here are incentives and financing to help you afford them.
Note: Installers are experts at determining how to calculate your rebate based on the size of your system.
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.
Details: Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
In the NYS Budget passed in April of 2022, a NYS Income Tax Credit of 25% with a cap of $5,000 was put in place for qualified residential geothermal heat pump systems. Key eligibility criteria include the residence needs to be in NYS and is the taxpayer’s residence at the time the geothermal energy system is placed in service. If you have limited NYS tax liability, the credit can be used over five (5) taxable years. Be sure to check with your tax or financial advisor about your ability to take advantage of the NYS Geothermal Tax Credit.
Property tax exemption for residential energy efficiency upgrades including heat pumps
Full Load Heating Rebate – $1500 per 10,000 BTUH of heating capacity (certified by AHRI) (-$500 per project to contractor)
Eligibility Requirements:
GSHP must be ENERGY STAR certified and meet ENERGY STAR Tier 3 requirements and be sized to 90-120% of building heat load.
This incentive only covers closed-loop systems. Speak with your installer for more information about incentives for open-loop systems.
Full Load Heating Rebate – $2000 / 10,000 BTUH of heating capacity (certified by AHRI) (-$500 per project to contractor)
Eligibility Requirements:
GSHP must be ENERGY STAR certified and meet ENERGY STAR Tier 3 requirements and be sized to 90-120% of building heat load.
This incentive only covers closed-loop systems. Speak with your installer for more information about incentives for open-loop systems.
Also, if check out Central Hudson’s Fuel-Switching Calculator to see how much you can save with heat pumps, based on your current system and monthly bill!
Note: Installers are experts at determining how to calculate your rebate based on the size of your system.
Property tax exemption for residential energy efficiency upgrades including heat pumps
Cold Climate Air Source Heat Pumps, Full Load Heating Rebate – $1,000 / 10,000 BTUH of maximum capacity at 5°F ($500 per unit to contractor)
Cold Climate Air Source Heat Pumps, Partial Load Heating Rebate – $500 / outdoor unit ($100 per unit to contractor)
Eligibility Requirements:
All ASHPs must be NEEP-listed Cold Climate Air Source Heat Pumps
Full Load: Can be central or mini-split heat pump, must be sized to 90-120% of building heat load
Partial Load: Must be mini-split heat pump
Cold Climate Air Source Heat Pumps, Full Load Heating Rebate – $1,300 / 10,000 BTUH of maximum capacity at 5°F ($500 per unit to contractor)
Cold Climate Air Source Heat Pumps, Partial Load Heating Rebate – $500 / outdoor unit ($100 per unit to contractor)
Eligibility Requirements:
All ASHPs must be NEEP-listed Cold Climate Air Source Heat Pumps
Full Load: Can be central or mini-split heat pump, must be sized to 90-120% of building heat load
Partial Load: Must be mini-split heat pump
Also, if check out Central Hudson’s Fuel-Switching Calculator to see how much you can save with heat pumps, based on your current system and monthly bill!
| 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 |
| Air Source Heat Pump Water Heaters (HPWH) <120 gallons | $1000/unit |
| Commercial air source HPWH >120 gallons | $80/MMBTU annual energy savings |
| Ground Source HPWHs | $1000/unit |
| Ground Source Heat Pump desuperheater | $150/unit |
| BONUS for ccASHP + HPWH installation | $250 |
Also, if check out Central Hudson’s Fuel-Switching Calculator to see how much you can save with heat pumps, based on your current system and monthly bill!
Property tax exemption for residential energy efficiency upgrades including heat pumps
It’s time to take control of your energy bill and live more comfortably in your home. It all starts with a no cost home energy audit conducted by participating residential auditors. The audit provides you with a top-to-bottom look at where your home is wasting energy. You will learn the root cause of any drafts, inconsistent temperatures, heating and cooling system failures, or other problems you may be experiencing.
Check out this chart to find a contractor in your area to schedule your free home energy audit.
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!
Assisted Home Performance with Energy Star pays for 50% of the costs of energy efficiency upgrades, up to $5000, for households that are at 80% or less of the area median income.
| 2022 Albany/Rensselaer/Saratoga/Schenectady Income Limits | |||||||
| Household Size | 1 | 2 | 3 | 4 | 5 | ||
| Assisted Home Performance | |||||||
| Area Median Income (AMI) | 80% | $54,350 | $62,100 | $70,544 | $83,984 | $97,404 | |
| Designated Areas | Geo-Eligibility Tool | ||||||
| EmPower NY | |||||||
| State Area Median Income | 60% | $32,748 | $42,828 | $52,908 | $62,988 | $73,056 | |
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:
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.
| 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% |
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.
What’s the area median income? Compare your gross income (before tax deductions) against these charts to determine which AMI bracket you fall into.
Also, ask your HeatSmart Installer about loans that they offer.
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