If a heat pump heats your Long Island house, there's a PSEG Long Island electric rate written for you, and it's easy to miss if nobody mentions it. It's called Rate 580. Here's what it is, what it actually saves in a winter month, who qualifies and how you sign up, using the numbers straight from the tariff.
What is PSEG Long Island Rate 580?
Rate 580 is the residential space heating rate in the LIPA tariff, listed as Rate Code 580 under Service Classification No. 1. As of January 2026, it charges less for delivery energy above 400 kWh a month from October through May. LIPA owns the tariff, and PSEG Long Island runs it day to day.
Most homes are on the standard residential rate, Rate 180. In summer the two match: from June through September, Rate 580 bills the first 250 kWh at $0.1064 and everything above that at $0.1348, the same as Rate 180, as of January 2026. The difference only shows up in the heating months, which is when a heat pump is doing its heaviest work. You can read both rates in the LIPA tariff, October 2026 edition.
How much does Rate 580 save on a winter bill?
As of January 2026, Rate 580 charges $0.0585 per kWh for delivery energy above 400 kWh a month from October through May, against $0.1064 on the standard rate. That works out to about 45% off that part of the bill. PSEG Long Island has described it as about 40%. The Power Supply Charge isn't discounted.
Worked example: a 1,400 kWh January
Say your house uses 1,400 kWh in January. The first 400 kWh bill at the normal delivery rate on either plan. The other 1,000 kWh bill at $0.0585 instead of $0.1064, a difference of $0.0479 each. That's $47.90 off the delivery energy charge for the month.
| Part of the month's use | kWh | Standard rate (Rate 180) | Rate 580 |
|---|---|---|---|
| First 400 kWh | 400 | $42.56 | $42.56 |
| Above 400 kWh | 1,000 | $106.40 | $58.50 |
| Delivery energy charge | 1,400 | $148.96 | $101.06 |
Those figures cover the delivery energy charge only. They leave out the Power Supply Charge, taxes and the $0.56-a-day service charge, which you pay on either rate. For reference, PSEG Long Island's Power Supply Charge was $0.139822 per kWh as of September 2026, and it's billed the same way on Rate 580.
For scale, the EIA's Winter Fuels Outlook (released October 2026) forecasts that Northeast homes heated by electricity will use 6,252 kWh from November 2026 through March 2027 for all uses. In a heat pump house, most of a cold month's use lands above the 400 kWh line, which is exactly where the discount applies. To compare a heat pump against oil or gas for your own house, try our oil vs gas vs heat pump cost calculator.
Who qualifies for Rate 580?
As of April 2026, the tariff says the electric heat or heat pump has to supply all of the building's heat and be permanently connected. The equipment must meet LIPA's specifications, and you sign an application for the space heating provision, plus an insulation compliance certificate where one applies to your home.
- Likely fits: a house where a whole-house heat pump is the only heating system, whether that's a ducted system or mini-splits covering every room.
- Likely fits: a house heated entirely by permanently connected electric heat. The tariff covers electric resistance heat as well as heat pumps.
- Likely doesn't fit: a ranch with an oil boiler and baseboard that also has one mini-split in the family room. The boiler still supplies heat, so the heat pump isn't supplying all of it.
We didn't find separate-meter language in the tariff; the rate applies per meter. If you're unsure where your house stands, ask PSEG Long Island before you apply.
Does a dual-fuel heat pump home qualify for Rate 580?
Probably not. In a dual-fuel home, the furnace or boiler still heats on the coldest days, so the heat pump isn't supplying all of the heat, which is the tariff's condition. PSEG Long Island's newsletter has used looser wording, 'the primary source of heat,' so confirm with PSEG Long Island before counting on it.
That doesn't make dual fuel a bad choice. For a drafty Cape or a big split-level, a backup fuel can be the right call. Just run your numbers on the standard rate, not Rate 580. If you're deciding between the two setups, our page on heat pump installation and our heat pump cost guide lay out what each involves.
How do you sign up for Rate 580?
You apply to PSEG Long Island yourself. Ask PSEG Long Island for the Rate 580 space heating application, sign it, and include the insulation compliance certificate if it applies to your home. K2 doesn't apply for customers or submit the form, so the enrollment stays between you and PSEG Long Island.
- Confirm the heat pump or electric heat supplies all of the house's heat.
- Contact PSEG Long Island and ask for the space heating application for Rate 580.
- Keep your installer's paperwork with the equipment model numbers handy, since the equipment has to meet LIPA's specifications.
- Sign and return the application, with the insulation certificate if PSEG Long Island says you need one.
- Check a later bill to see that your rate code changed to 580.
Rate 580 is separate from PSEG Long Island's heat pump rebates, which we cover in our heat pump rebate guide. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
What kind of heat pump job puts Rate 580 on the table?
Any job where a heat pump ends up carrying the whole heating load. If the old boiler or furnace stays as the main heat, the rate won't apply. If the heat pump replaces it outright, the rate is worth applying for, because every winter kWh above 400 a month bills at the lower delivery price.
In May 2026 in Huntington, we replaced two old air conditioning systems with a Daikin multi-zone mini-split heat pump: a ducted air handler in the attic for the second floor and a ductless wall unit for the living room, both on one 36,000 BTU outdoor unit. Because it's a heat pump, it heats as well as cools. Whether a house like that can use Rate 580 depends on whether the heat pump carries all the heat or another system still does.
Tip from Waseem Shahzad, Lead Technician: On that Huntington job, Waseem judged the existing drain pump unreliable, so the crew put in a new one with the new system. A heat pump makes condensate whenever it cools, and an attic air handler depends on its drain pump. When old equipment comes out, ask whether the drain pump is staying, and replace it if it's tired.
Plenty of Long Island houses still heat with a boiler and baseboard, like the one where we cleaned packed baseboard fins in Huntington last January. Moving a house like that to a heat pump is a bigger job; see our oil to heat pump conversion page. And if an outdoor unit ices up in a cold snap, our guide to a heat pump frozen in winter explains what's normal and what isn't.
Our recommendation: if a heat pump heats your whole house, apply for Rate 580 before the heating months start. In a 1,400 kWh month it takes $47.90 off the delivery energy charge. If you have a dual-fuel setup or a boiler still doing part of the work, confirm with PSEG Long Island before assuming you qualify.
Thinking about a heat pump that could carry your whole house? Call K2 Cooling & Heating at (631) 414-7141. We work within about 15 miles of Deer Park, across western Suffolk and eastern Nassau, and we'll look at your house and tell you what a heat pump would need to cover the full heating load.
Need a technician rather than a guide? See our heat pump service, or read about HVAC repair in Deer Park, NY. K2 answers 24/7 at (631) 414-7141.
