NYS Clean Heat - Statewide Heat Pump Program

Clean Heating and Cooling Solutions (Heat Pumps)

Heat pumps provide a clean, cost-effective alternative for heating and cooling.

Heat pumps are a more efficient heating and cooling option that eliminate fossil fuels, can provide up to 100 percent of your heating and cooling needs, and help you save on your energy bills.

NYS Clean Heat Incentives

Through the NYS Clean Heat program, electric utility companies offer rebates on both air and ground source heat pumps. Visit your electric company’s website or reach out to them to learn more:

If you are a customer of a municipal electric utility, check with your utility to learn about any programs it may offer.

Find a Contractor

Rebates are available when you work through a NYS Clean Heat participating contractor.

How do They Work?

Heat pumps draw heat from the environment and moving it indoors to heat your home in the winter or moving it outdoors to cool your home during the summer months. A heat pump can significantly reduce energy usage, leading to long-term overall savings by lowering maintenance costs and utility bills.

Benefits include:

  • A healthier home. Unlike oil or propane, heat pumps don’t require combustion of fossil fuels or fuel storage, eliminating the potential release of carbon monoxide while improving your home’s air quality.
  • Efficient heating and cooling. Heat pumps are very energy efficient—they extract more energy than they consume by moving the existing heat from one place to another.
  • Greater control of your comfort. Heat pumps provide whisper-quiet, even heating and cooling regardless of the season.
  • Convenience and longevity. Heat pumps last longer than conventional furnaces and air conditioners and require minimal maintenance. By switching to a heat pump, you’ll eliminate the need for a window A/C and, if you currently heat your home with oil or propane, you’ll never have to deal with the hassle of scheduling fuel deliveries again.

Air Source Heat Pumps

Air source heat pumps (ASHPs transfer heat between the inside of a building and the outside air while creating a more comfortable indoor environment. Recent technological advancements in ASHPs make them a strong alternative to conventional heating in colder regions like New York State. ASHPs can be installed in spaces with ductwork (central systems) or spaces without ductwork (ductless mini-split systems) making them a great solution for any space.

Ground Source Heat Pumps

Ground source heat pumps (also known as geothermal) are a particularly good heating and cooling option if you’re planning a major renovation or building a new home. Rather than producing heat through the combustion of fossil fuels, ground source heat pumps efficiently extract heat from the ground during cold weather and distribute it throughout your home. During warmer months, the process is reversed to provide cooling.

  • 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

Financing Options

In addition to incentives, NYSERDA offers On-Bill Recovery, Smart Energy, and Companion loan options for residents to help New York State residents finance renewable and energy efficiency projects. These loans provide lower interest rates to lower-income New Yorkers and to those who cannot qualify for traditional financing. For projects that exceed these loan amounts, you can access the Companion Loan for additional financing.

Loan amounts are available from $1,500 to $25,000 with loan terms of five, 10, or 15 years.

On-Bill Recovery Loans

What are they? Residential On-Bill Recovery loans make it easy to pay and manage installation costs by adding them as a line item to your monthly utility bill. If you decide to sell your home and move, the unpaid balance of the loan can easily be transferred to the new homeowners.

Interest Rates. Interest rates are subject to the customer’s credit qualification. We encourage you to use our interest rate estimator to determine which rate may be available to you. Rates are subject to change.

Learn More. For full eligibility requirements and instructions on how to apply for a Residential On-Bill Recovery loan, visit Energy Finance SolutionsLink opens in new window - close new window to return to this page. or call 1-800-361-5663.

Smart Energy Loans

What are they? Through our residential Smart Energy loans, your repayments are made directly to NYSERDA’s loan servicer.

Interest Rates. Interest rates are subject to the customer’s credit qualification. We encourage you to use our interest rate estimator to determine which rate may be available to you. Rates are subject to change.

Learn More. For full eligibility requirements and instructions on how to apply for a Smart Energy loan, visit Energy Finance SolutionsLink opens in new window - close new window to return to this page. or call 1-800-361-5663.

Companion Loans

What are they? Through our Companion Loan, you can access additional financing for projects that exceed the $25,000 cap on the On-Bill Recovery and Smart Energy loans. To access the Companion Loan, you must first fully utilize the $25,000 On-Bill Recovery and Smart Energy Loan.

Interest Rates. 6.49% (pay by ACH) or 6.99% (pay by check).

Learn More. Speak with your contractor. They can help you apply for the Companion Loan.

Become a NYS Clean Heat Contractor

Become a NYS Clean Heat contractor and encourage residents, small businesses, and commercial and multifamily building owners to install cold climate air source heat pumps (ASHP) and energy efficient ground source heat pumps (GSHP) and heat pump water heaters (HPWH). Incentives are available to consumers as well as participating contractors.