Purchasing and Installing a Heat Pump Has Never Been More Affordable
NYS Clean Heat offers rebates and financing options for New York residents. Lower your bills and stay comfortable all year long with a new Mitsubishi Electric heat pump system.
Up to $12,000 Instant Rebate Available For Whole-Home Solutions
The Inflation Reduction Act of 2022 created federal energy programs and incentives to help reduce the cost of implementing renewable energy systems1. As of December 31, 2025, these programs have expired. However, New York homeowners can still take advantage of state-administered programs as well as local energy company and manufacturer rebates to save money.
What Programs Are Available to New York State Homeowners in 2026?
The New York State government and energy companies statewide offer a variety of incentives to help make installing new heating and cooling systems more affordable. Explore the incentives you may be eligible for, depending on your energy provider.
NYS Clean Heat Program
The New York State Clean Heat Program provides incentives for heat pump installations, covering up to 70% of project costs. For residents in the Central Hudson territory, the NYS Clean Heat Program covers up to 85% of project costs for eligible installations2.
To meet the incentive criteria, the installation must be at an eligible site: an existing one- to four-unit residential building or an apartment building with more than five units, where the project includes up to four residential dwelling units whose owners don't control the whole building2.
Furthermore, the residential dwelling units at eligible sites must be owned or controlled by an electric customer with an active account number for utilities. The number matters, as it must contribute to the System Benefits Charge—which funds energy-efficiency-related initiatives.
The Central Hudson NYS Clean Heat incentives include up to $18,000 for single-family residential full-load heating (retrofit) with a ground-source heat pump (GSHP)2.
Incentives vary by electric company, home type, project scope, and type of heat pump (ground or air source), so explore how much you may be eligible for in NYS Clean Heat rebates or other incentives.
NYSEG Clean Heat Incentives
New York State Electric and Gas (NYSEG) offers incentives to help customers cover the expenses of installing clean heating systems. You may be eligible for up to $17,000 for single-family residential full-load heating (retrofit) with a ground source heat pump (GSHP)3. There are also many other incentives, both for apartments and single-family homes, depending on the type of heat pump project you choose. Projects in Disadvantaged Communities (DACs) are often eligible for an additional $1,000 incentive on top of the non-DAC incentive amount.
National Grid Clean Heat Residential Incentives
As of 2026, National Grid offers some of the highest clean heat residential incentives. You could be eligible for up to $25,000 for a full-load heating (retrofit) with a GSHP in a single-family home in a DAC, or $20,000 for the same project in a non-DAC, among other incentives4.
Why Are Heat Pumps Worth the Investment?
Heat pumps are very different from traditional furnaces. Instead of generating heat from a fuel source, they transfer it from one environment to another. In the winter, the heat pump absorbs heat from outside and transfers it to indoor spaces. In the summer, it reverses this process. The heat pump absorbs heat from inside your home and releases it outside to cool your home.
Moving heat in this manner is significantly more energy-efficient than creating it, so installing a heat pump can help reduce your energy use and bills. Heat pumps are quiet, safe, and environmentally friendly. They also maintain a consistent temperature with an all-in-one system, unlike separate furnaces and air conditioners.
Plus, if you qualify for financial incentives, installing a heat pump may cost less than you think. They can also last for at least 15 years with proper care, so your heat pump will provide energy-efficient heating and cooling for a long time5.
Why Work with a Mitsubishi Electric Elite Diamond Contractor?
Working with a qualified contractor to install your new heat pump is often a condition of these NYS Clean Heat incentives. The best choice is a Mitsubishi Electric Elite Diamond Contractor like Ridgeline Heating and Cooling. The contractors receive rigorous training in the installation and replacement of Mitsubishi Electric systems.
If you're considering a new heat pump, reach out to Ridgeline Heating and Cooling to discuss your options and get a quote for installation.
Sources
- Summary of Inflation Reduction Act provisions related to renewable energy. Environmental Protection Agency. Retrieved January 20, 2026, from http://epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy
- (23 January 2026). New York State Clean Heat, Heat Pump Program Manual. New York State Energy Research and Development Authority. Retrieved February 18, 2026, from https://cleanheat.ny.gov/assets/pdf/NYS%20Clean%20Heat%20Program%20Manual%202025.12.12_REFILE.pdf
- (12 December 2025). 2026 Residential NYSEG Clean Heat Incentives. Rochester Gas and Electric (RGE). Retrieved January 20, 2026, from https://mcusercontent.com/c9e446e0fed725e081736813c/files/af02ce09-ea5e-c464-04bb-357dc91fef0b/NYSEG_RGE_2026_Incentives_NEW_12_12_25.pdf
- (12 December 2025). National Grid Clean Heat Residential Incentives: 2026. National Grid. Retrieved January 20, 2026, from https://mcusercontent.com/c9e446e0fed725e081736813c/files/32d7c84b-134b-fb12-1bf9-3ead7f73f56d/NGrid_2026_CH_INC_NEW_V2_12_12_25.pdf
- (18 July 2024). Install a Heat Pump for Positive Impact. Mitsubishi Electric. Retrieved January 20, 2026, from https://www.mitsubishicomfort.com/articles/install-a-heat-pump