Incentives and financing

Incentives and financing

A variety of rebates, incentives, and special financing options are available. Learn more about your options and whether they're available for your building.

Clean heating and cooling technologies receive rebates, incentives, and special financing from state and federal governments and utility programs. Currently, NYSERDA has incentives for all four clean heating and cooling technologies. A table of available incentives is listed below.

An important note for Otsego Electric Coop members! All NYSERDA incentives are funded through the Systems Benefit Charge, a fee charged to all accounts with investor-owned utilities like NYSEG and National Grid. Therefore, these rebates are not available to customers of Otsego Rural Electric Coop. However, the lower electric rates of Coop members mean higher savings and shorter paybacks, even without the upfront rebates.

Importantly, all of the Heat Smart Otsego selected installers are well-versed in these program requirements, will make you aware of your options, and will fill out the paperwork on your behalf.

If you have any questions or concerns we encourage you to reach out to your town’s HeatSmart Coach for more information.

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Questions? Contact the Heat Smart Otsego Campaign Director, Bennett Sandler (campaigndirector@occainfo.org).

The Heat Smart Otsego Clean Heating and Cooling Community Campaign is a project of the Otsego County Conservation Association (OCCA) with financial support from the New York State Energy Research and Development Authority (NYSERDA).

Air Source Heat Pump Incentives

Entity and Program Name Amount Eligibility Requirements Submission Process
NYSERDA
Air Source Heat Pump Program
$500 per outdoor unit Submitted and received by installer after installation, installer may choose to pass to customer
National Grid

Electric Heat and Products Program

Tier 1 Ductless: $200 per ton SEER ≥ 18

Note: Current program terms expire at end of December 31, 2018. All equipment must be installed prior to December 31, 2018 and submitted by no later than January 31, 2019

Submitted and received by customer after installation
Tier 2 Ductless: $375 per ton SEER ≥ 22
Tier 1 Ducted: $200 per ton SEER ≥ 18
Tier 2 Ducted: $350 per ton SEER ≥ 20
Tier 2 Ductless: $200 per unit HSPF ≥ 9 / SEER ≥ 20 / EER ≥ 13
Tier 1 Ducted: $200 per unit HSPF ≥ 9 / SEER ≥ 15 / EER ≥ 12.5
Tier 2 Ducted: $300 per unit HSPF ≥ 9 / SEER ≥ 16 / EER ≥ 13
Tier 3 Ducted: $500 per unit HSPF ≥ 9 / SEER ≥ 18 / EER ≥ 13

Ground Source Heat Pump Incentives


Entity and Program Name Amount Eligibility Requirements Recipient/Submitter
NYSERDA
Ground Source Heat Pump Rebate Program
$1,500 per ton of cooling capacity (<10 tons)

(up to $15,000 for a single-family home, $500,000 per building)

Installer submits application prior to installation to secure rebate (received after completion), must be passed onto customer
National Grid

Electric Heat and Products Program

Tier 1: $200 per ton EER 12.1 to 21 / COP 3.1 to 4.1
  • Systems that meet NYSERDA requirements guaranteed to be eligible for at least Tier 1 requirements.
  • Requires preapproval
  • Max of $1,500 per project
Submitted and received by customer after installation
Tier 2: $400 per ton EER ≥ 21 / COP 3.1 to 4.5
Internal Revenue Service

Residential Renewable Energy Tax Credit

30% of installed cost of system after rebates (no maximum)
  • Steps down to 26% for projects that commence construction in 2020 and 22% for projects that commence in 2021. Expires for residential customers after 2021
  • If you don’t have sufficient tax liability, you may be able to claim the credit in future years. Consult a tax professional for more information.
Filed as part of annual federal taxes (Form 5695)

Biomass Incentives

Entity and Program Name Amount Eligibility Requirements Recipient/Submitter
NYSERDA
Renewable Heat NY
Pellet Stoves $1,500
  • For non-income-eligible customers, customer can only receive incentive if they have an existing wood/pellet stove or fireplace insert currently installed and in working condition and opt to recycle it
  • New stove must be listed on US EPA Certified Wood Stoves List
  • Must use participating contractor
Installer submits application and receives incentive (must pass on to customer)
80% SMI: $2,000 +$500 for recycling an existing stove
Advanced Cordwood Boiler with Thermal Storage 25% of installed cost (up to $7,000) +$2,500 or $5,000 for recycling existing wood furnace or boiler Installer submits application and receives incentive (must pass on to customer
Small Biomass Pellet Boiler with Thermal Storage 45% of installed cost  (up to $16,000 for ≤120 kBtu/h and $36,000 for ≤300 kBtu/h +$5/gal for each gallon above minimum thermal storage requirement
NYS Office of Temporary and Disability Assistance: Home Energy Assistance Program (HEAP) Pellet Stoves Regular Benefit: $525 + add-ons
  • Direct payments must be made to vendors. $26 or $51 add-ons available if individual's income is in the Tier 1 income range, or if the household contains a vulnerable person.
 
Emergency Benefit: $525 for pellets
  • Individual must have less than a 10 day supply of pellets.
  • Income eligibility requirements, such as using SNAP.
 
Heating Equipment Repair and Replacement: Cost of repairs up to $3,000 for repair and $6,500 for replacement
  • Income-eligibility requirements
Contact your HEAP Local District to apply. Payment is made directly to the vendor after all the work is completed.

Energy Efficiency Incentives

Entity and Program Name Amount Eligibility Requirements Recipient/Submitter
NYSERDA

Home Performance with ENERGY STAR

<200% AMI: No-Cost Home Energy Assessment

200-400% AMI: Reduced Cost Home Energy Assessment

  • No income verification is required as part of the process
  • Must use a participating contractor
  • Contractor also receives 10% incentive
  • Customer must pay into SBC
Submitted and received by contractor
NYSERDA

Assisted Home Performance with ENERGY STAR

80% AMI: No-Cost Home Energy Assessment + 50% incentive on cost of eligible energy efficiency improvements
  • Income-eligible program, verification required
  • Max of $4,000 incentive for single-family homes and $8,000 for 2-4 family homes
  • Must use a participating contractor
  • Contractor also receives 5% incentive
  • Customer must pay into SBC
  • Customer cannot receive utility rebates for the same measures incentivized through HPwES
Submitted and received by contractor; customer must apply for income eligibility
NYSERDA

EmPower New York

≤60% SMI: No-Cost Home Energy Assessment and eligible energy efficiency improvements
  • Income-eligible program, verification required
  • Includes approved energy efficiency improvements, including air sealing, insulation, thermostats, efficient lighting, and appliance replacement
  • Maximum of $7,000 in no-cost improvements (average size of $4,000)
  • Must use a participating contractor
Submitted and received by contractor; customer must apply for income eligibility
NYS Homes and Community Renewal Agency

Weatherization Assistance Program

≤60% SMI: No-Cost energy audit and completion of specific energy conservation measures
  • Income-eligible program, verification required (customers are automatically eligible if they receive HEAP and other forms of low-income assistance)
  • Homeowners and renters eligible
  • Priority given to senior citizens, families with children, and persons with disabilities.
  • Includes approved energy efficiency improvements, including air sealing, insulation, HVAC repairs/replacement, hot water tank/pipe insulation, efficient lighting and appliance replacement, and window/outside door repair or replacement
Submitted and received by contractor; customer must apply for income eligibility

Financing Options


Entity and Program Name Terms Eligibility Requirements
NYSERDA Smart Energy Loan Up to $25,000; terms of 5, 10, and 15 years

Interest Rates based on income level and credit score:

  • ≤80% SMI: 3.49%+
  • 80-120% SMI: 4.99%+
  • >120% SMI: 5.99+% (≥640 FICO score and DTI of ≤50%) or 6.99+% (<640 FICO score or DTI >50%)

Fee of $150 for loan processing

  • Scope of work must be completed by participating contractor
  • Customer must pay into SBC
  • Rate provided and income verified through credit application
  • Home performance, GSHP, and biomass are pre-qualified measures; ASHP currently not a pre-qualified measured
  • Balance may not be transferred upon sale/transfer of property
  • Customer must own the property or be an authorized representative
On-Bill Recovery Loan
  • Payments made through monthly utility bill
  • Balance may be transferred to new owner upon sale/transfer of property
  • Customer must own the property and be named on the utility account

How large are these incentives?

Your installer will help you understand the rebates your system will be eligible for as part of providing you a quote during your free site visit.

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How much will my system cost with these incentives included?

Check out the Heat Smart Otsego Pricing Guides below for each installer. There is a summary version that provides the base pricing and explains what is included in the base price and what could cause your quote to change. There is also a more detailed version for reference that lists out some of these adders and explains what they are for. However, note that the assumptions behind the pricing and adders listed in this detailed version may not align with the condition of your home, and there may be additional modifications that may be needed that are not captured by this sheet.

What do these incentives mean for the cost-effectiveness of clean heating and cooling?

These incentives can significantly close the gap between CH&C and conventional technologies. However, CH&C technologies are still unlikely to be cost-effective investments for homeowners who currently heat with gas. Depending on the application, CH&C can be cost-effective for most oil-heated homes and will be very cost-effective for propane and electric resistance heated homes.

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