Rebate figures for Long Island heat pumps go stale fast. Search for them and you will still find the old per-ton amounts and the federal tax credit, both of which no longer apply. The numbers on this page come from the program pages themselves, and the dates beside them tell you how fresh they are. Before you sign, ask the contractor to show every incentive as its own line on the quote.
PSEG Long Island’s whole-house rebate in 2026
On Long Island the main heat pump rebate comes from PSEG Long Island, the electric utility. For single-family homes (one to four units), PSEG lists these amounts for a whole-house cold-climate air source or air-to-water heat pump:
| Household | Rebate | Source |
|---|---|---|
| Market rate | $4,000 | PSEG Long Island (2026) |
| Market rate, in a Disadvantaged Community | $5,000 | PSEG Long Island (2026) |
| Moderate income, under 80% of area median income | $5,000 | PSEG Long Island (2026) |
| Low income, under 60% of area median income | $7,500 | PSEG Long Island (2026) |
| Contractor incentive | $250 per project | PSEG Long Island (2026) |
PSEG says cost caps may apply. It makes the final call on whether your address is in a Disadvantaged Community, using NYSERDA’s published data, per its January 2025 program announcement.
The income limits PSEG uses
Income is verified through PSEG’s own process. These are PSEG’s 2026 maximum annual household incomes for the two higher tiers.
| Household size | Low income (60% AMI) | Moderate income (80% AMI) |
|---|---|---|
| 1 | $69,263 | $92,350 |
| 2 | $79,163 | $105,550 |
| 3 | $89,063 | $118,750 |
| 4 | $98,925 | $131,900 |
| 5 | $106,875 | $142,500 |
| 6 | $114,788 | $153,050 |
Source: PSEG Long Island, Rebates and Eligibility, 2026 income guidelines. PSEG’s table runs to ten-person households.
What the house and the installer must qualify for
The rebate is attached to the design, not just the equipment. PSEG’s conditions in plain terms:
- use one of PSEG’s participating contractors
- get a Manual J heat loss calculation for the house
- size the system to cover 100 to 120% of the whole dwelling’s heating load
- buy equipment on NEEP’s cold-climate list (air-to-water units go on New York’s own qualified list)
- either remove the old oil or gas system, or keep it as backup on dual fuel or integrated controls with the heat pump as primary
A partial system that heats a few rooms does not meet the load rule. PSEG’s January 2025 announcement also ended the $250 equipment-only rebate and said freeze thermostats no longer count as controls for a backup system.
EmPower+ for income-eligible households
NYSERDA’s EmPower+ is open to income-eligible owners and renters of one to four-family homes, and Nassau and Suffolk get the downstate amounts:
| EmPower+ benefit | Downstate amount | Source |
|---|---|---|
| Low income, single family | No-cost improvements up to $14,000 per project | NYSERDA |
| Moderate income, single family | 50% of the cost, up to $7,000 per project | NYSERDA |
| Air source heat pump add-on (Sustainable Futures) | $10,000 | NYSERDA |
| Ground source heat pump add-on | $10,000 | NYSERDA |
| Heat pump water heater add-on | $5,000 | NYSERDA |
The heat pump add-ons come on top of the income-based caps, NYSERDA says. You apply through NYSERDA’s MyEnergy portal or with a mailed paper form, and your Regional Clean Energy Hub can help with the application. NYSERDA’s number is 866-NYSERDA.
Cornell Cooperative Extension of Suffolk County strongly advises income-eligible residents to pick a contractor that takes part in both PSEG’s Home Comfort Plus and EmPower+, and to do air sealing and weatherization before installing a heat pump.
Rate 580 after the install
Once a heat pump is the home’s primary heat, PSEG Long Island’s Rate 580 gives a 40% energy delivery charge discount on usage above 400 kWh a month from October through May, per PSEG’s November 2025 partner newsletter. Cornell Cooperative Extension Suffolk says to contact PSEG to be switched to it. It is not automatic.
Geothermal and heat pump water heaters
Geothermal. New York State’s geothermal energy system credit is 25% of qualifying equipment costs. The Tax Department caps it at $10,000 for systems placed in service on or after July 1, 2025 ($5,000 before that). It is nonrefundable, unused credit carries forward up to five years, and it is claimed on Form IT-267. PSEG’s 2026 rebate page does not list a single-family ground source rebate. Its January 2025 announcement did list per-ton amounts, so ask a geothermal installer what PSEG is paying now before you count on it.
Heat pump water heaters. PSEG’s 2026 page lists ENERGY STAR heat pump water heaters with a limit of one rebate per appliance type per unit, and says the rebate cannot be more than 70% of the purchase price. Ask the installer for the current dollar amount.
What ended on December 31, 2025
Two federal credits are gone for 2026 projects. The IRS says the energy efficient home improvement credit, which PSEG’s November 2025 newsletter described as up to $2,000 for heat pumps, cannot be claimed for property placed in service after December 31, 2025. The residential clean energy credit, which covered geothermal, cannot be claimed for expenditures after that date either. If a quote or a brochure still subtracts a federal credit from a 2026 install, ask the company to take it out.
Steps that keep the rebate safe
- Get quotes only from PSEG participating contractors.
- Ask for the Manual J and the load percentage the system covers, in writing.
- Check the outdoor unit’s model number on NEEP’s list yourself.
- If you may qualify by income, start PSEG’s income verification early, and ask about EmPower+ at the same time.
- Ask when the contractor files the rebate paperwork. All Island Comfort says it files after the contract is signed and before installation.
- After the install, call PSEG about Rate 580.