Oil-to-electric heat pump conversion on Long Island

Oil-to-Electric Conversion

Ditch Oil Heat for Good

Convert your oil heating system to an efficient electric heat pump. We handle the full project from installation to oil tank decommissioning, plus every rebate dollar you're owed.

Last updated: April 2026

Why Convert


Why Long Island Homeowners Are Leaving Oil Behind

Oil prices are unpredictable. Tanks age out. Rebates have never been higher. Here's what a conversion actually gets you.

Lower Monthly Bills

Heat pumps are far more efficient than oil burners. On the conversions we have documented, heating costs came down roughly 34% a year. Estimates only, and your house is its own thing.

No More Oil Deliveries

No price spikes, no running out mid-January, no tank inspections. Your heating runs on electricity from the grid.

Rebate Money on the Table

The PSEG Long Island heat pump rebate runs $4,000 to $7,500, set by your household income and whether your address is in a disadvantaged community. We check both before quoting.

AC Included

Heat pumps cool in summer too. Most oil-heated homes don't have central AC, so you gain whole-home cooling for the first time.

How It Works


From Oil to Electric in Five Steps

We manage the entire conversion so you don't have to coordinate between contractors, utilities, and rebate programs.

1

Free Home Assessment

We evaluate your current oil system, home layout, insulation, and electrical capacity. You get a detailed quote with all rebates applied.

2

System Design & Rebate Filing

We select the right heat pump for your home and file all PSEG Long Island rebate paperwork before work begins.

3

Heat Pump Installation

Our technicians install your new heat pump system. Ducted, ductless, or hybrid based on your home's needs and your preferences.

4

Oil Tank Decommissioning

We coordinate oil tank removal or decommissioning with a licensed contractor. Underground or above-ground, it's handled.

5

Final Testing & Walkthrough

We commission the system, verify performance, and walk you through operation. You're done with oil.

Rebates & Incentives

The Rebate Comes Off Your Project, Not Your Tax Return

The PSEG Long Island rebate is one flat program, and the tier is set by your household income and by whether your address sits in a disadvantaged community. We check both, file the paperwork, and take the rebate off your project instead of leaving you waiting on a check. Curious what your bills could look like after the switch? Try our energy savings calculator.

  • PSEG Long Island heat pump rebate: $4,000 market rate, $5,000 in a disadvantaged community or moderate income, $7,500 low income
  • Rate 580: takes 45% off your electric usage above 400 kWh a month, October through May. It is a rate discount, not a rebate
  • NYSERDA EmPower+: income-qualified, no-cost weatherization upgrades
See All Rebates & Savings

Thousands

In rebates and savings

What's my heat pump rebate?


See what homes like yours are getting

Most Suffolk County homeowners qualify for a $4,000 PSEG rebate on a whole-home heat pump. Homes in a disadvantaged community, or moderate-income households, get $5,000. Income-qualified homes get $7,500. We confirm your exact tier before you commit to anything.

Addresses in a disadvantaged community qualify for the $5,000 tier. Check yours on New York State's official map.

Think you may be income-qualified? You can check with Energy Finance Solutions.

Oil Tank Handling


We Coordinate the Tank Too

One of the biggest headaches of switching from oil is dealing with the tank. We work with licensed environmental contractors to handle decommissioning or removal so you don't have to manage a separate project.

  • Above-ground tank removal and disposal
  • Underground tank decommissioning (pump, clean, fill)
  • Soil testing if required by your municipality
  • All permits and documentation handled
Before and after oil-to-electric heat pump conversion

Replace Your Oil Furnace With a Heat Pump

If you're tired of paying for oil deliveries, replacing your oil furnace with a heat pump is a real option here. The PSEG Long Island heat pump rebate runs $4,000 to $7,500, set by your household income and by whether your address is in a disadvantaged community, and we confirm both before we quote you a net number. Rate 580 keeps helping after the install, taking 45% off your electric usage above 400 kWh a month from October through May. (The federal 25C tax credit that used to add another $2,000 expired at the end of 2025 and is gone for 2026 installs.)

We handle the full conversion: Manual J load calculation, cold-climate heat pump sizing (Mitsubishi or Daikin Hyper-Heat for most Long Island homes), coordination with a licensed electrician if your panel needs upgrading, and coordination with an oil tank decommissioning partner if you want the tank removed. For a full walk-through of what a conversion runs this year, see our 2026 oil-to-electric cost breakdown for Long Island.

Replace Your Oil Boiler With a Heat Pump

Oil boilers with baseboard radiators are common across older Suffolk County homes. (If you're trying to keep an existing boiler going rather than replace it, see our boiler repair service.) The conversion path is slightly different: because you don't have existing ductwork, a ductless mini split system (wall-mounted or ceiling-cassette heads) is usually the cleanest retrofit. We'll walk you through whether a whole-home ducted system, a multi-zone ductless setup, or a hybrid (heat pump plus your existing boiler as backup) fits your house best. If you do have ducts, we evaluate them as part of the conversion and handle any sealing or modifications the new system needs.

Keep Your Radiators, Lose the Oil: the Daikin Altherma

For homes with existing radiators or baseboard that you want to keep, there is a new option worth knowing about. The Daikin Altherma is a high-temperature, air-to-water heat pump that produces water hot enough to drive cast-iron radiators directly, the same way an oil boiler did. It also makes your domestic hot water and provides central cooling, all on electricity, from one outdoor unit. Daikin only releases the Altherma through contractors who have completed its full installation and commissioning certification, and we finished that program. Very few contractors on Long Island have, so if you are comparing quotes it is worth asking whoever you call whether they are a certified Altherma installer.

Whether your particular radiators can carry the house on a design-day cold night depends on how much radiation you have and how the home loses heat. Our heat pumps for radiators page walks through what we look at before we recommend it.

Common Questions


Oil-to-Electric Conversion FAQ

A full oil-to-electric conversion typically costs $12,000 to $30,000 before incentives, depending on the size of the house and how the system gets installed. The PSEG Long Island heat pump rebate is a flat $4,000 to $7,500 set by your household income and whether your address is in a disadvantaged community. Figures here are estimates, subject to program eligibility and change, and we confirm your final numbers in writing before you sign anything. The federal 25C tax credit expired at the end of 2025 and is not available for 2026 installs.

Your oil tank needs to be decommissioned or removed. For underground tanks, a licensed environmental contractor pumps out remaining oil, cleans the tank, and fills it with sand or foam. Above-ground tanks are drained and removed. We coordinate this with a trusted local contractor so you don't have to manage it separately. Tank removal typically costs $800-$2,500 depending on type and location.

Yes. Modern cold-climate heat pumps from Mitsubishi and Daikin hold close to rated capacity down to about 5F and keep producing usable heat down to roughly -13F. Long Island winters rarely drop below the teens, well within that range. If you want extra security, we can install a hybrid system that keeps your existing boiler as backup for the coldest nights while the heat pump handles 90%+ of your heating.

Many older Long Island homes have 100-amp panels that can't support a heat pump without an upgrade. A 200-amp panel upgrade typically costs $1,500-$2,500. We assess your electrical capacity during the estimate and let you know upfront. Some newer heat pump models are designed to work with lower-amperage panels, which can avoid this cost.

The heat pump installation itself takes 1-3 days depending on the system. Oil tank decommissioning adds another day. If you need an electrical panel upgrade, that's an additional day. Most full conversions are completed within a week. We schedule everything so the work flows without gaps.

Yes. A heat pump heats and cools with the same system. Most oil-heated homes on Long Island don't have central AC, so converting to a heat pump gives you whole-home cooling for the first time. It's one of the biggest quality-of-life upgrades our customers mention after the switch.

No. The tier is set by your household income and by whether your address sits in a disadvantaged community, not by the fuel you are leaving behind. The PSEG Long Island rebate is one flat program: $4,000 market rate, $5,000 if your address is in a disadvantaged community or you meet the moderate income limit, and $7,500 if you meet the low income limit. What oil conversions do get you is the biggest drop in operating cost, because you stop buying oil. We check your address on the NYSERDA map and walk you through the income verification before we put a number in front of you.

Heat pumps generally cost less to run than oil heat on Long Island. On the jobs we have documented, a 3-ton oil-to-heat-pump conversion saves roughly $1,000 a year, which works out to somewhere around $10,000 over ten years. PSEG Rate 580 helps too: it takes 45% off your electric usage above 400 kWh a month, October through May. It is a rate discount, not a rebate. The other thing worth knowing is that the same system cools in summer, so if your house never had central AC you get cooling as part of the project rather than as a separate job later. These are estimates, subject to eligibility and change, and your actual numbers depend on your house, your insulation, and how you run the system.

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