Incentives & Financing

Note:  Installers are experts at determining how to calculate your rebate based on the size of your system.

NYSERDA

NYSERDA has launched a $5 million study that offers free or low-cost heat pump systems for approximately 500 low and moderate households–homeowners and renters–across the state.

There are two tiers of incentives:

1. The incentives for low-income households should cover 100% of the cost of air-source heat pump systems, along with water heaters, as well as an electric panel upgrade if needed. These are based on 60% of the state median income, or $57,564 for a family of four in Albany County. Here is a full income chart.
2. The incentives for moderate-income households should cover over 50% of the cost of heat pump systems, including water heaters, and an electric panel upgrade. These are currently based on 120% of the area median income, or $115,128 for a family of four in Albany County. Here is a full income chart, please reference 120% State Median Income Line.

Here are the main requirements for participation in the program:

• Currently heat with oil, propane, electric or wood (not with natural gas)
• Meet minimal insulation and air sealing (there is additional money to help reach these levels)
• Work with NYSERDA-approved contractors

Property Tax Exemption

Property tax exemption for residential energy efficiency upgrades including heat pumps

Utilities, Including National Grid, NYSEG

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

Central Hudson

Cold Climate Air Source Heat Pumps, Full Load Heating Rebate  – $1,600 / 10,000 BTUH of maximum capacity at 5°F ($500 per unit to contractor)

Cold Climate Air Source Heat Pumps, Partial Load Heating Rebate – $800 / 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!

NYSERDA

NYSERDA has launched a $5 million study that offers free or low-cost heat pump systems for approximately 500 low and moderate households–homeowners and renters–across the state.

There are two tiers of incentives:

1. The incentives for low-income households should cover 100% of the cost of air-source heat pump systems, along with water heaters, as well as an electric panel upgrade if needed. These are based on 60% of the state median income, or $57,564 for a family of four in Albany County. Here is a full income chart.
2. The incentives for moderate-income households should cover over 50% of the cost of heat pump systems, including water heaters, and an electric panel upgrade. These are currently based on 120% of the area median income, or $115,128 for a family of four in Albany County. Here is a full income chart, please reference 120% State Median Income Line.

Here are the main requirements for participation in the program:

• Currently heat with oil, propane, electric or wood (not with natural gas)
• Meet minimal insulation and air sealing (there is additional money to help reach these levels)
• Work with NYSERDA-approved contractors

Utilities Including National Grid, NYSEG

Central Hudson

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

Property tax exemption for residential energy efficiency upgrades including heat pumps

New York State / NYSERDA

Free NYSERDA Energy Audit

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 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!

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, but currently up to 120%  of area median income due to COVID-19 (this is expected to last through the end of 2020).

Confused about which programs you qualify for?  Use this tool to see which programs are right for YOU and your family.

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:

Loans

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.

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.

• Database of State Incentives for Renewables & Efficiency^®
• Live in a rural area? Check out the USDA Single Family Housing Repair Loans and Grants
• Buying a new home with an FHA grant?  HUD offers an Energy Efficient Mortgage Program (EEM) to help families save money on their utility bills by enabling them to finance energy efficient improvements with their FHA mortgage.  Check here for more information, or ask your FHA lender.