New Efficient Homes New York: Heat Pump Incentive
The New Efficient Homes New York: Heat Pump Incentive supports the adoption of cold climate air source heat pumps (ASHP) and ground source heat pumps (GSHP) throughout single family and small homes as well as multifamily buildings under 50,000 square feet across New York State. Participating projects will receive incentives for clean, high-performance heat pumps to reduce overall greenhouse gas emissions associated with the operation of new homes and provide healthy, comfortable, and safe living environments for occupants.
Key Program Benefits
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Save on upfront costs. Lower the cost of your heat pump system with direct incentives during construction. -
Get all-in-one heating and cooling. With one system for both heating and cooling, residents and tenants will feel comfort year-round. -
Reduce energy use. Heat pumps are the highest performance heating and cooling technology in the market, saving you energy while benefiting the environment.
Who Can Apply?
Home builders and developers of all residential new construction, adaptive reuse, or substantial renovations projects under 50,000 square feet are invited to apply. Open enrollment until December 15th, 2029.
Eligibility Requirements
- Location: Projects must be in New York State, with no restrictions on utility service territory. Projects in disadvantaged communities are encouraged.
- An additional $1,000 per dwelling unit is available for projects located within disadvantaged communities, as identified by the Climate Justice Working Group.
- Program Projects
- Single family and small homes (1–4 Dwelling Units) eligibility will be determined based on the estimated per square foot listing price as compared to the county median
. - Multifamily buildings (5 or More Dwelling Units) must identify the Project’s market type as either Market Rate or Low to Moderate Income (LMI). Eligibility will be determined based on the estimated rental price compared to the county median .
- Single family and small homes (1–4 Dwelling Units) eligibility will be determined based on the estimated per square foot listing price as compared to the county median
- Project Size: Residential projects under 50,000 square feet.
- Building Type: New construction, adaptive reuse, or substantial renovations.
- Construction Stage: In construction
- Clean Energy Systems: ASHP projects will be required to fully electrify their heating, cooling, and ventilation systems through the installation of high-performance heat pumps. GSHP projects will be required to be fully electric homes.
- Energy Standards: Requires compliance with NEEP cold climate ASHPs or ENERGY STAR® GSHPs standards
- System Standards: Systems sized for full space conditioning load.
Incentive Structure
| Program Year1 | Cold Climate ASHP ($/Dwelling Unit) | GSHP ($/Dwelling Unit) | Disadvantaged Communities bonus ($/Dwelling Unit) |
|---|---|---|---|
| Year 1 | $6,000 |
$15,000 | $1,000 |
| Year 2 | $5,000 | $12,000 |
$1,000 |
| Year 3 | $4,000 | $9,000 |
$1,000 |
Incentives must not exceed 35% of the installed cost of the equipment.
How to Apply
Applications will be accepted continuously through December 15, 2029, by 3:00 p.m. Eastern Time (ET).
You Might Also Be Interested In
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Affordable Multifamily Program Upstate (AMP Up)
Flexible incentive program for building owner’s looking to make energy efficiency upgrades to multifamily buildings.Read More Affordable Multifamily Program Upstate (AMP Up) -
Buildings of Excellence Competition
Buildings of Excellence recognizes eligible architects and developers whose projects simulate the design, construction, and operation of very low or zero carbon emitting buildings.Read More Buildings of Excellence Competition -
Flexible Technical Assistance (FlexTech) Program
Funding for various building types to complete a site-specific energy study that evaluates clean energy and energy efficiency upgrades.Read More Flexible Technical Assistance (FlexTech) Program
Have Questions?
Reach out to our team at [email protected] and we'll be happy to answer any questions you may have about New Efficient Homes New York.
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