Heat Pump Rebates on Long Island

Honest answer: the federal 25C tax credit that used to cover up to $2,000 for heat pump installations expired on December 31, 2025. It is not available for systems installed in 2026 or later. The good news is the New York State and PSEG Long Island programs are still active, and they are the bigger numbers anyway. We will update this page if Congress brings any federal credit back.

You must be a PSEG Long Island electric customer and install a qualifying heat pump system through a participating contractor. The equipment must meet minimum efficiency ratings set by PSEG, and the heat pump generally needs to replace your existing heating system as the home's primary heat source. We are a PSEG participating contractor and handle the entire rebate application process. The rebate is a flat amount per home set by income tier: $4,000 at market rate, $5,000 for moderate-income households or homes in a Disadvantaged Community, and $7,500 for income-qualified households. Those tiers are set by household income and by whether your address falls in a Disadvantaged Community. PSEG verifies income through Energy Finance Solutions, and the limits depend on your household size, so we do not quote a tier until that comes back.

Most of these rebates are designed around replacing your existing heating system, so the heat pump needs to take over as your home's primary heat source. Adding a cooling-only system, or a supplemental unit that leaves an oil, gas, or propane furnace or boiler as your main heat, usually means reduced rebates or none at all. New construction with no system to replace falls into the same bucket. If you are not sure how your project lines up, give us a call and we will tell you exactly what it qualifies for.

The main one is the PSEG Long Island rebate, a flat whole-house amount for a qualifying heat pump that replaces your existing heating system. On Long Island that single rebate is how the NYS Clean Heat money is paid, so it is not two separate rebates. Income-qualified households can also tap NYSERDA EmPower+, a separate program that pays for weatherization and energy efficiency work on the same project. We check your eligibility during the estimate visit and help you apply for every program you qualify for.

No, and this trips a lot of people up. On Long Island, PSEG administers the NYS Clean Heat program, so the heat pump rebate you get is one amount, not a PSEG rebate plus a separate Clean Heat rebate stacked on top. What does stack is NYSERDA EmPower+ (weatherization for income-qualified homes) and PSEG Rate 580 (an ongoing discount on your winter electric usage). One caveat: if you take IRA HEAR funding through EmPower+, you cannot also take the PSEG rebate, since that is the same Clean Heat money.

The PSEG Long Island rebate is a flat amount per home: $4,000 at market rate, $5,000 for moderate-income households or homes in a Disadvantaged Community, and $7,500 for income-qualified households. PSEG sets your tier, so we quote the market-rate amount until they confirm it. On top of that, Rate 580 takes 45% off your electric usage above 400 kWh a month, October through May. It is a rate discount, not a rebate, and what it saves depends on your own usage. Income-qualified homes may also add EmPower+ weatherization, which is a separate program.

Yes. We complete and submit the PSEG Long Island rebate application, and any EmPower+ paperwork, on your behalf at no extra charge. Our goal is to make sure you receive every dollar you are entitled to without the hassle.

The PSEG Long Island rebate is usually applied by the participating contractor, so on most projects it comes off your invoice up front rather than arriving as a check months later. Where a rebate is paid after installation, PSEG's documented window is up to about 10 weeks. We offer financing options that let you spread payments over time while you wait for any post-install rebates to arrive.