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 2-3x more efficient than oil burners. Most homeowners save 30-50% on heating costs year over year.

No More Oil Deliveries

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

Biggest Rebates Available

Oil-to-electric conversions qualify for the highest PSEG Long Island and NYSERDA Clean Heat rebate tiers. Stack several thousand in savings.

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 and NYSERDA 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

Oil-to-Electric Gets the Best Rebates

Because oil-to-electric produces the biggest emissions reduction, these conversions qualify for the highest available incentive tiers. We file everything for you. Curious what your bills could look like after the switch? Try our energy savings calculator.

  • PSEG Long Island rebates: up to $5,000 (highest tier for oil conversions)
  • NYSERDA Clean Heat: per-ton incentive
  • NYSERDA EmPower+: income-qualified, no-cost upgrades
  • PSEG Home Comfort Plus: income-qualified, up to 100% covered
See All Rebates & Savings

Thousands

In stacked rebates

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 the most rebate-friendly move you can make on Long Island right now. PSEG Long Island and NYSERDA both reward oil-to-electric conversions more aggressively than any other HVAC upgrade, and oil conversions qualify for the highest PSEG rebate tier. A typical Suffolk County homeowner stacks several thousand in incentives against the equipment and install cost. (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.

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 look at them as part of the conversion. See our ductwork services for sealing, modifications, and replacement.

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. PHA is one of a select few Long Island contractors authorized to install it.

Common Questions


Oil-to-Electric Conversion FAQ

A full oil-to-electric conversion typically costs $14,000-$24,000 before incentives. After stacking PSEG Long Island rebates (up to $5,000, oil conversions hit the highest tier) and NYSERDA Clean Heat (per-ton), most homeowners pay $11,000-$19,000 out of pocket. Income-qualified households may pay nothing through PSEG Home Comfort Plus. Note that the federal 25C tax credit expired at the end of 2025 and is no longer 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 operate efficiently down to -13F. Long Island winters rarely drop below the teens, well within the comfort 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.

PSEG and NYSERDA offer higher incentives for oil-to-electric conversions because they produce the largest reduction in carbon emissions. Switching from oil to an electric heat pump cuts household heating emissions by 50-75%. These programs are designed to accelerate that transition, so conversion projects qualify for rebate tiers that standard heat pump installations don't.

Heat pumps cost less to run than oil heat on Long Island for almost every home. A typical Suffolk County home burns 800 to 1,200 gallons of oil a year at $3 to $4.50 a gallon, which comes to $2,400 to $5,400 annually. A properly sized heat pump running on PSEG electricity (especially on Rate Code 580, which cuts delivery charges by about 40% for whole-home heat pump customers October through May) typically costs $1,200 to $2,500 a year to run. Over 10 years you are usually looking at $15,000 to $30,000 in operational savings, plus the AC you get for free.

Ready to Get Comfortable?

Text us today or book online. No pressure, no surprises. Honest HVAC service from your Patchogue neighbors.