2026 Long Island Heat Pump Incentive Guide
Last updated Reviewed by Waseem Shahzad, Lead Technician
Long Island heat pump incentives in 2026 come almost entirely from PSEG Long Island's Home Comfort program. The federal tax credit is gone, and National Grid has no heat pump rebate here. This guide lists what each program pays, as of the month shown, and the rules that decide whether your install qualifies.
What does the PSEG Long Island heat pump rebate pay in 2026?
A flat amount per single-family home, not per ton: $4,000 at market rate, $5,000 in a Disadvantaged Community, $5,000 for moderate-income households and $7,500 for low-income households, as of July 2026. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
| Household | Whole-house heat pump rebate |
|---|---|
| Market rate | $4,000 per home |
| Market rate, Disadvantaged Community | $5,000 per home |
| Moderate income (under 80% of area median income) | $5,000 per home |
| Low income (under 60% of area median income) | $7,500 per home |
Source: PSEG Long Island Home Comfort heat pump rebates, as of July 2026, for single-family homes of 1 to 4 units. PSEG's December 2025 program bulletin lists a slightly different moderate-income cap than the web page, so confirm your tier with PSEG. The program also pays the participating contractor $250 per project, and the bulletin lists a $250 bonus when the fossil-fuel system is decommissioned.
Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Which installs qualify for the whole-house rebate?
The heat pump has to carry the whole house. PSEG requires the system to meet 100% to 120% of the entire home's heating load, shown with a Manual J calculation, using equipment on the NEEP cold-climate list. A heat pump for one or two rooms does not qualify on its own, as of July 2026.
- Sizing: Manual J load calculation; capacity between 100% and 120% of the whole home's heating load (the 2026 bulletin measures it at 17°F).
- Equipment: cold-climate air-source heat pumps listed by NEEP; units with a furnace component are excluded. Air-to-water heat pumps are also eligible.
- Keeping the old system: allowed only with dual-fuel thermostat or integrated controls that manage the switchover. Otherwise the fossil-fuel system has to come out.
- Cap: the 2026 bulletin caps rebate levels at 5 heating tons.
- Who applies: the installation goes through a PSEG participating contractor, who submits the application.
Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com. If the rebate matters to your budget, ask any contractor you are considering whether they are a PSEG participating contractor before you sign.
Is there a rebate for heat pump water heaters?
Yes. PSEG Long Island offers up to $1,200 on a heat pump water heater as of July 2026, limited to a share of the purchase price. Unlike the whole-house heat pump rebate, you can claim it yourself online with a paid receipt, or get the discount at checkout when you buy through PSEG's online Marketplace.
Details and the current percentage limit are on PSEG's ENERGY STAR rebates page. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com. Our guide to heat pump water heaters on Long Island covers where they work in a Long Island basement.
Do income-eligible households get more?
Yes. PSEG's Home Comfort program pays $7,500 per home to low-income households (under 60% of area median income) and $5,000 to moderate-income households (under 80%). For 2026, the low-income limit for a household of four is $98,925 a year, according to PSEG's rebate page as of July 2026.
NYSERDA runs a separate income-eligible program, EmPower+. We could not confirm its current terms for PSEG Long Island customers, so check eligibility directly at nyserda.ny.gov before counting on it. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Does National Grid offer heat pump rebates on Long Island?
Not that we could find. As of October 2026, National Grid's Long Island program pages list no heat pump rebate for gas customers, and its in-store midstream rebates are no longer available. Long Island heat pump incentives run through PSEG Long Island and the state's Clean Heat program instead.
Source: National Grid Long Island energy saving programs, checked October 2026.
Can I still claim the federal tax credit?
No, not for new installs. The federal 25C Energy Efficient Home Improvement Credit ended for property placed in service after December 31, 2025, under Public Law 119-21. Equipment placed in service on or before that date can still be claimed on that year's return, according to the IRS.
Source: IRS FAQs on the 25C changes (fact sheet FS-2025-05). Manufacturer promotions come and go during the year; ask the brand or the installer what is running when you get your quote.
How should I plan a heat pump install around the rebate?
Decide first whether you want a whole-house system, because that is what the PSEG rebate pays for. Then get a Manual J load calculation, confirm the equipment is on the NEEP list, and choose a participating contractor if you want the rebate. Partial systems and dual-fuel setups follow different rules.
- Price the options: our heat pump cost guide has planning ranges, and the heating cost calculator compares running costs.
- Check your electric rate: whole-house electric heat can qualify for PSEG's Rate 580 winter discount. See Rate 580 explained.
- Decide on backup: keep the boiler or furnace with dual-fuel controls (dual-fuel heat pumps) or remove it.
- Confirm the rebate path with PSEG before you sign anything.
Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Heat pump and conversion jobs from our records
Two old systems replaced with a Daikin multi-zone mini-split heat pump
Huntington · Mini-Split Installation · May 2026
Two old indoor air handlers and outdoor units were removed and replaced with a Daikin multi-zone mini-split heat pump, plus a new drain pump.
Oil furnace replaced with gas heat, central air and a water heater
West Babylon · Heating & Cooling Installation · October 2026
An oil furnace and oil tank removed and replaced with a Goodman gas furnace, central air, a new water heater and a Wi-Fi thermostat.
Common questions
How much is the PSEG Long Island heat pump rebate in 2026?
As of July 2026, PSEG Long Island pays $4,000 per single-family home at market rate, $5,000 in a Disadvantaged Community or for moderate-income households, and $7,500 for low-income households, for a whole-house heat pump. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Does K2 file PSEG rebate applications?
No. K2 is not a PSEG participating contractor and does not file rebate applications. We size the system and give you the equipment specifications the program asks for. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Can I keep my oil boiler and still get the rebate?
According to PSEG's rebate page as of July 2026, the existing system can stay only with dual-fuel thermostat or integrated controls that manage the switchover; otherwise it has to be removed. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Is there still a federal tax credit for heat pumps?
No. The 25C credit ended for property placed in service after December 31, 2025, under Public Law 119-21. Systems placed in service on or before that date can still be claimed on that tax year's return, according to the IRS.
Do mini-splits for one room qualify?
Not for the single-family whole-house rebate. As of July 2026, PSEG requires the heat pump system to cover 100% to 120% of the entire home's heating load, shown with a Manual J calculation. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Want a heat pump sized for your house?
We do the load calculation, give you the equipment specifications and a written quote. Call us and tell us how the house is heated today.
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