*** AS OF MARCH 2020 NYSERDA Has transferred heat pump rebates to your local utility, check back here soon for details of those programs or contact your local utility directly.


Ground source heat pump (GSHP) systems transfer thermal energy between the ground and a building to heat and cool without any harmful emissions or additional fuel. Through the Ground Source Heat Pump Rebate initiative, NYSERDA is making $26.5 million available for the installation of this cutting-edge, renewable energy technology.

This initiative will provide funding only to eligible GSHP designers and installers approved by NYSERDA. If you, as a homeowner would like to install GSHP for your geothermal home heating and cooling system in your home or property, American Heating & Cooling is an approved installer.

Benefits to GSHP Customers

By participating in NYSERDA’s Ground Source Heat Pump Rebate initiative, GSHP professionals will be able to provide customers with multiple benefits at lower costs and reach communities for which this clean technology could otherwise be unaffordable.

GSHP technology can provide your customers with:

  • Lower and less volatile annual energy bills, especially for customers with fixed or low- to moderate-income and service-oriented institutions like non-profits, schools, community centers, and houses of worship
  • Greater resiliency and reliability during disruptions to grid-connected heating and cooling sources
  • More comfort and health because of added air conditioning and improved indoor air quality delivered by this emissions-free technology
  • A long-term solution to heating and cooling needs that they will likely find easier to maintain than alternatives


The rebate is available on a first-come, first-served basis as follows:

  1. Small systems—those installed in single family residences and those that use 10 or less tons of cooling capacity—are eligible for rebates of $1,500 per ton of cooling capacity.
  2. Large systems—those installed at non-single family residences that are more than 10 tons of cooling capacity—are eligible for rebates of $1,200 per ton of cooling capacity.


The initiative caps the rebate, regardless of the actual installed capacity as follows:

  • Single family home can receive up to $15,000
  • A single building can receive up to $500,000
  • A site with multiple buildings can receive up to $1 million
  • No single designer/installer can receive more than $13.25 million

Eligible applicants affected by a utility company natural gas moratorium can take advantage of higher rebate caps through the Clean Energy Action Plan. This includes Con Edison customers in Southern Westchester and NYSEG customers in Lansing, NY that currently pay into the System Benefits Charge:

  • Projects comprising small-scale GSHP systems (< or = 10 cooling tons) are eligible for a rebate of $1,875 per cooling ton; and
  • Projects comprising large-scale GSHP systems (> 10 cooling tons) are eligible for a Rebate of $1,500 per cooling ton

Subject to the following incentives caps, regardless of the actual installed capacity:

  • Rebates for single family residences are limited to $18,750
  • Rebates for large-scale GSHP systems are limited to $5 million per project

Visit the Clean Energy Action Plan page to learn more and determine your eligibility.

How It Works

This rebate is for designers and installers of GSHP systems. Site owners interested in this initiative should find a NYSERDA-approved designer or installer to evaluate a project at your home or business.

If you are a GSHP designer or installer, you must first become a NYSERDA-approved contractor, only then can you apply for this rebate. After applying, NYSERDA will contact you via email about the status of your application.

Designers and installers working on a small system—will receive the rebate upon completion of installation of the project.

Designers and installers working on large systems—must complete a preliminary technical analysis before applying to this initiative. To receive the rebate you must complete the design, the loop field installations, and the final installation.

For more details, you can go directly to the NYSERDA Ground Source Heat Pump Page here

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