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: many incentives are given “per ton” of the heating and cooling system, an old-fangled but still widely used term defined as the amount of energy it takes to melt a ton of ice. It is a conventional measurement for a home’s heating or cooling needs. Don’t worry, you do not need to figure out this number yourself! Installers are experts at determining this number. Most homes are three to five tons.
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.
Expires: December 31, 2021
Details: Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
$1500/ton. This incentive is expected to last through the end of March 2020, after which the utilities are expected to run the incentive programs.
Property tax exemption for residential energy efficiency upgrades including heat pumps
National Grid incentivizes geothermal for electric-only customers who do not have natural gas. Rebates are per ton, and most homes are 3-5 tons. Visit their incentive page or download their application.
NYSEGCentral Hudson does not provide geothermal / ground source heat pump rebates at this time.
Central Hudson does not provide geothermal / ground source heat pump rebates at this time.
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: many incentives are given “per ton” of the heating and cooling system, an old-fangled but still widely used term defined as the amount of energy it takes to melt a ton of ice. It is a conventional measurement for a home’s heating or cooling needs. Don’t worry, you do not need to figure out this number yourself! Installers are experts at determining this number. Most homes are three to five tons.
As of April 2019, NYSERDA is offering $1000/ton for “whole home” cold climate systems that meet 90-120% of a home’s heating needs. Ask your installers about this incentive!
Property tax exemption for residential energy efficiency upgrades including heat pumps
National Grid’s rebates are per ton, and NYSEG and Central Hudson have flat rebate amounts. Most homes are 3-5 tons.
National Grid incentivizes air source heat pumps for electric-only customers who do not have natural gas. Visit their incentive page or download their application.
NYSEGNYSEG provides incentives up to $1050 for cold climate air source heat pumps. Visit their incentive page or download their application. A couple of details to note: 1) this is retroactive to the beginning of 2019, and 2) if you have multiple single-zone systems installed, according to NYSEG’s energy efficiency hotline, simply submit an application for each one.
Central Hudson provides incentives up to $300 for cold climate air source heat pumps. Visit their incentive page or download their application.
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!
National Grid incentivizes heat pump water heaters for electric-only customers who do not have natural gas. Visit their incentive page or download their application.
NYSEGNYSEG provides incentives up to $500 for heat pump water heaters. Visit their incentive page or download their application. A couple of details to note: 1) this is retroactive to the beginning of 2019, and 2) if you have multiple single-zone systems installed, according to NYSEG’s energy efficiency hotline, simply submit an application for each one.
Central Hudson provides incentives up $750 for heat pump water heaters. Visit their incentive page or download their application.
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
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 $4000, for households that are at 80% or less of the area median income.
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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