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Ground Source Heat Pump Rebate

Ground source heat pump (GSHP) systems transfers thermal energy between the ground and a building to heat and cool without any harmful emissions or additional fuel. Through the Ground Source Heat Pump Rebate initiative, NYSERDA is making $15 million available for the installation of this cutting-edge, renewable energy technology.

This initiative will provide funding only to eligible GSHP designers and installers approved by NYSERDA. If you would like to install GSHP in your home or property, NYSERDA encourages you to learn more about ground source heat pumps and look for an approved designer or installer to participate. You can also refer potential designers and installers to NYSERDA. However, funding is not available directly to building owners or site owners.

Benefits to GSHP Customers

By participating in NYSERDA’s Ground Source Heat Pump Rebate initiative, GSHP professionals will be able to provide customers with multiple benefits at lower costs and reach communities for which this clean technology could otherwise be unaffordable.

GSHP technology can provide your customers with:

  • Lower and less volatile annual energy bills, especially for customers with fixed or low- to moderate-income and service-oriented institutions like non-profits, schools, community centers, and houses of worship
  • Greater resiliency and reliability during disruptions to grid-connected heating and cooling sources
  • More comfort and health because of added air conditioning and improved indoor air quality delivered by this emissions-free technology
  • A long-term solution to heating and cooling needs that they will likely find easier to maintain than alternatives


The rebate is available on a first-come, first-served basis. NYSERDA has separated the initiative into two tiers:

  1. Small systems—those that use 10 or less tons of cooling capacity—are eligible for rebates of $1,500 per ton of cooling capacity.
  2. Large systems—those that use more than 10 tons of cooling capacity—are eligible for rebates of $1,200 per ton of cooling capacity.


The initiative caps the rebate in some cases, regardless of the actual installed capacity:

  • Single family home can receive up to $15,000
  • A building can receive up to $500,000
  • A site with multiple buildings can receive up to $1 million
  • No single designer/installer can receive more than $7.5 million

How It Works

This rebate is for designers and installers of GSHP systems. Site owners interested in this initiative should find a NYSERDA-approved designer or installer to evaluate a project at your home or business.

If you are a GSHP designer or installer, you must first become a NYSERDA-approved contractor, only then can you apply for this rebate. After applying, NYSERDA will contact you via email about the status of your application.

Designers and installers working on a small system—equal to or less than 10 tons of cooling capacity—will receive the rebate upon completion of installation of the project.

Designers and installers working on large systems—more than 10 tons of cooling capacity—must complete a preliminary technical analysis before applying to this initiative. To receive the rebate you must complete the design, the loop field installations, and the final installation.

Who Can Apply

Only qualified designers and installers approved by NYSERDA are eligible to submit applications. Become an approved designer or installer.

Your project must be located in New York State and the site owner must pay the System Benefits Charge. You must design and install your project according to the requirements in the Ground Source Heat Pump Rebate Manual.

You must submit your application online, which will include:

  • Signatures from the site owner and system owner (if different)
  • Contact information for key project staff
  • A load calculation summary report, which depends on the type of project. (See the program manual [PDF] for more information.)
  • Air-Conditioning, Heating, and Refrigeration Institute (AHRI) rating certificate for each heat pump model installed. For units larger than 135,000 BTU/hr, which are not rated by AHRI, you can submit manufacturer specification sheets instead, provided the units have been tested in accordance with AHRI/ISO 13256-1 or 13256-2, as applicable.

Application Submission

Learn More

If you want more details on this initiative, please read the full Ground Source Heat Pump Rebate Manual [PDF]. NY-GEO also provides more background on all forms of renewable heating and cooling on their website.

Associated Documents