What’s Changing in NYS Clean Heat Rebates?
New York State’s Clean Heat program is changing in 2026. This program offers incentives for homeowners to convert their homes to heat pumps systems and away from fossil fuel burning furnaces and boilers. Incentives arrive to the homeowner through their local utility company when a new system is installed by way of rebates.
What’s Changing?
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Before, incentives were calculated on a per BTU basis relating to the size of the new system. Moving forward, the rebate will be per dwelling with simple tiers based on square footage. This will simplify understanding the program and calculating the rebate.
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Over the next 5-years, the program will evolve to increase the importance on integrating weatherization projects into the overall project.
A major component in reducing usage is improving the building’s insulation value and reducing air leakage. Over time, the state will require a combination of weatherization improvements, along with, higher efficiency heating and cooling systems to maximize a home’s potential.
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Non-residential projects will receive unique and separate guidance. Secondary structures without a dedicated account will fall under the primary account/building type.
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Beginning in 2026, only Ground Source Heat Pumps (Geothermal Systems) will qualify for incentives in new home construction.
What’s Staying?
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Requirements for sizing and design of the new systems will remain the unchanged. The program requires that the systems be properly sized and designed for each individual house to eliminate over/undersizing systems.
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The Contractor’s project submission process, program contacts, and inspection requirements will all remain the same.
Disadvantaged Communities
DACs are scattered all throughout the state of NY. These communities are defined by the New York Climate Justice Working Group.
