Financing Options for Heat Pumps

There's never been a better time to make the switch. With various financing programs, rebates, and tax credits available, a heat pump and mini split system is easier than ever to integrate into your home or business. Let EcoHeat New York guide you through the available options to help you save on installation costs.

Heat Pump Financing | Rebates | Tax Credits | NYSERDA

Save Today on Heating &
Cooling and Installation Costs

As the saying goes, the best time to switch to a heat pump system for your heating and cooling was yesterday... the next-best time is right now. With propane and oil costs rising and more rebates/credits available for green energy solutions, you can achieve rapid system payback times and save hundreds to thousands of dollars a year faster than ever. Let EcoHeat New York help you navigate the financial assistance options so you can make your heat pump system integration easy and affordable.

Programs to Help With Your Installation:

The New York State Energy Research and Development Authority (NYSERDA) offers financing programs so that you can affordably and easily install a heat pump and mini split system in your home or office. EcoHeat New York can help educate you and direct you on the best financing options for your installation to reduce the up-front financials and give you peace of mind with your payback.

The On-Bill Recovery Loan is a loan program that takes your specific budget in mind and is customized to your project. With this loan, your monthly payments may not exceed your estimated average monthly energy cost savings. Your loan payments are built right into your energy bill so you will not have an extra bill each month.

The Smart Energy Loan is a more traditional loan with consumer-friendly interest rates that you repay monthly via check or automatic payment.

The Renewable Energy Tax Credit Bridge Loan is a short-term loan product which enables you to finance federal and state tax credits for eligible renewable energy system products. You can pair this loan with a Smart Energy or On-Bill Recovery Loan and a Companion Loan.

With these programs and more, there are plenty of financing options to help remove any hurdles to installing a eco-friendly and economical heat and cooling system for your home or business. Click the button below to learn more!

New York State Electric & Gas and National Grid both have rebate programs available for installing an eco-friendly heat pump system in your home. Whatever service comes to your home or office, there are a variety of incentives available for you to take advantage of.

NYSEG offers a $500 rebate on your first compressor installation for a mini split system, and that rebate can go as high as $1,000 if the system supplies 90% of your heating needs. Not sure how to calculate how large a system you need? No worries-- EcoHeat New York will handle the quoting process to make sure you have an option that will clear this threshold via a BTU load rating calculation. There are decreasing rebate amounts available on subsequent units for your installation, so we'll work to make sure we are engineering both the perfect system for your space and one that will qualify for as much financial assistance as possible.

National Grid has multiple programs available as well. According to National Grid, households that install heat pump systems save an average of $400 on their equipment on partial air source heat pumps and up to $3,000 on equipment for full air source heat pumps. If you install integrated controls or remove your current fossil fuel system, you qualify for even higher incentives.

We highly recommend completing the Available Rebates form linked below to see what you qualify for and how much savings can be potentially realized on your system installation.

EnergyStar rated units qualify for tax credits that can be applied to your installation and help you save even more on your system cost. These tax credits can be 30% of your system cost up to to $2,000. There are various ways these tax credits can be paired and combined with other projects; the following from the EnergyStar website is very useful in planning your home energy-efficiency improvements:

"Given the way the annual aggregate limits are structured, it may be prudent to spread your improvements over a few years. If your heating or cooling system is old, and you are considering a new air source heat pump, it is always wise to optimize your attic insulation first, so you don’t pay for more heating and cooling than you actually need. Making these upgrades together in one year would allow you a tax credit of up to $1,200 for the insulation and up to $2,000 for the heat pump. Similarly, you could combine a heat pump installation with window/door replacements. In that scenario, the $2,000 credit for the heat pump could be combined with tax credits up to $600 total for the windows/skylights plus $500 for two or more doors. If you replace your water heater the following year, you would be eligible for another 30% tax credit, up to $2,000 plus up to $600 if you need an electric panel upgrade to accommodate the new water heater."

There may be even more savings coming down the pike... the Inflation Reduction Act is a federal bill that has passed which includes provisions for funding even more green energy and heat pump rebate programs. This bill allots nearly $9 billion in rebates for home energy efficiency and electrification projects.

It's up to the states to now adopt this legislation into their various energy programs, and if cleared there could be even more savings available for you on your heat pump and mini split information. Use the buttons below to learn more!

View Products Learn Our Story Schedule a Site Quote