PSEG Long Island Whole-House Heat Pump Rebate
In May 2026 PSEG Long Island moved its cold-climate air-source and air-to-water heat pump rebates from a per-ton formula to a flat amount per home. For single-family homes doing a whole-house project, the amount depends on income and location:
| Tier | Rebate per Home | Who It's For |
|---|---|---|
| Market rate | $4,000 | Any single-family PSEG Long Island customer |
| Disadvantaged Community | $5,000 | Market-rate home located in a designated Disadvantaged Community |
| Moderate income | $5,000 | Household income under 80% of area median income |
| Low income | $7,500 | Household income under 60% of area median income |
Source: PSEG Long Island Home Comfort heat pump rebate page, checked November 2026. Utility rebates change; confirm the current table on PSEG Long Island's site or by calling its Energy Infoline (1-800-692-2626) before you sign a contract.
What It Takes to Qualify
Whole-house sizing
The heat pump system must cover 100–120% of the entire home's heating load. A Manual J load calculation is required, so ask to see it.
Cold-climate equipment
The rebate covers cold-climate air-source and air-to-water heat pumps, which are rated to keep heating at low outdoor temperatures.
Heat pump runs first
Either the old oil or gas system comes out, or it stays as backup with integrated or dual-fuel controls so the heat pump is the primary heat source.
Participating contractor
The equipment has to be purchased from and installed by a PSEG Long Island Home Comfort Partner, who normally files the application.
The Federal Tax Credit Is Gone
Until the end of 2025, the federal Energy Efficient Home Improvement Credit (Section 25C) covered 30% of a qualifying heat pump, up to $2,000. The 2025 federal budget law ended that credit for equipment placed in service after December 31, 2025, and nothing replaced it. If a contractor's 2026 quote still subtracts a federal tax credit, ask them to take it out.
That leaves the PSEG Long Island rebate as the main incentive for most homeowners. Income-qualified households should also ask about New York State assistance programs, which can stack with the utility rebate in some cases.
Heat Pump, Gas, or Stay on Oil?
Long Island is split almost evenly between oil and gas heat, and which upgrade makes sense depends mostly on whether a gas main runs down your street:
- ✓No gas main (much of the East End, the North Fork, Fire Island and parts of Brookhaven): a cold-climate heat pump with the flat rebate is usually the best way off oil. If your oil tank is old, the cost of a new oil tank belongs in the comparison.
- ✓Gas on your street: an oil to gas conversion often costs less up front, but the free 100-foot gas service rule is ending (see getting a gas line to your house). A heat pump also replaces window units or an old central AC.
- ✓Hybrid: keep a working boiler as backup for the coldest nights with integrated controls. It still qualifies for the whole-house rebate as long as the heat pump runs first.
Already have a heat pump that isn't keeping up? See our heat pump repair and installation page, or compare ducted systems vs. ductless mini-splits.