Incentives and financing
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 Cooperative 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 Electric Cooperative. 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 reach out to Heat Smart Otsego Campaign Director for more information.

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 |
|
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) |
|
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 |
|
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 |
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Emergency Benefit: $525 for pellets |
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Heating Equipment Repair and Replacement: Cost of repairs up to $3,000 for repair and $6,500 for replacement |
|
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 | <200% AMI: No-Cost Home Energy Assessment
200-400% AMI: Reduced Cost Home Energy Assessment |
|
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 |
|
Submitted and received by contractor; customer must apply for income eligibility |
NYSERDA | ≤60% SMI: No-Cost Home Energy Assessment and eligible energy efficiency improvements |
|
Submitted and received by contractor; customer must apply for income eligibility |
NYS Homes and Community Renewal Agency | ≤60% SMI: No-Cost energy audit and completion of specific energy conservation measures |
|
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:
Fee of $150 for loan processing |
|
|
On-Bill Recovery Loan |
|
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.

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.
