2026 New York State Heat Pump Water Heater Incentives: NYSERDA EmPower+ & Utility Rebate Guide
Benefits of an ENERGY STAR® certified heat pump water heater
Heat Pump water heaters are ~70% more efficient that standard electric water heaters and save the average households in New York State $751* every year on their electric bills. A Heat Pump water heater is the only water heater that quickly pays for itself (payback) with the energy savings.Â
Heat Pump water heaters pull heat from the surrounding ambient air and pass it on to the water. They operate like your refrigerator, just in inverse. They help dehumidify the basement. It is much more efficient to transfer heat than to create heat.
Heat pump water heaters get installed exactly like a standard electric water heater. The only difference is the need for a condensate drain nearby (or use a condensate pump to a sink) and a minimum of ~700 cubic feet (i.e 10′ x 10′ x 7′) around the water heater (consult the specific manufacturers’ Use & Care manual, louvered doors and air ducting options exist for smaller enclosures).
To operate properly Heat Pump water heaters cannot reside on a recirculation system that runs continuously. Install a timer or a motion sensor.
*Based on DOE test procedure and Energy Guide comparison of 50-gallon nominal capacity pre-2015 standard electric (3,609 kWh) and ACiQ 50-gallon heat pump water heater (866 kWh) using DOE EF to UEF conversion rates. Annual energy savings of 2,743 kWh/year and average NYS residential electricity cost of 27.39 cts/kWh. Savings may vary. Source accessed March 2026: https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
âš¡ March 2026 Compliance Update:
The Federal 25C tax credit expired on 12/31/2025. This page covers the active 2026 HEAR Rebates and local utility stacking rebate options currently available to homeowners in Arizona.
Home Electrification and Appliance Rebates [HEAR]
The Home Electrification and Appliance Rebate [HEAR] Program is a State initiative funded Federally in 2022 that gives low-to-moderate-income households an instant discount of up to $14,000 to switch to high-efficiency electric appliances. Unlike a tax credit that you wait months for, this rebate is applied at the time of purchase, essentially acting like a high-value coupon.
1. High-Value Instant Savings in New York State
You don’t get a check in the mail; you get a lower price on the invoice.
Heat Pump Water Heaters: Up to $1,750 off.
Heat Pump Heating/Cooling: Up to $8,000 off.
Electrical Panels/Wiring: Up to $6,500 off (if needed for new appliances). and more…
2. Eligibility is Income-Based
The program is designed for households earning less than 150% of the Area Median Income (AMI).
Low Income (<80% AMI): The rebate covers 100% of the cost (up to the caps above).
Moderate Income (80%–150% AMI): The rebate covers 50% of the cost (up to the caps above).
3. Point-of-Sale Convenience
Because this is a point-of-sale program, you must work with a state-approved contractor or retailer. You simply apply on the State portal and get your State Voucher. The contractor deducts the amount of the voucher directly from your quote.
How to Claim Your Voucher in the State of New York (4 Simple Steps)
To get the rebate, you must follow New York’s official process before you buy your new water heater.
1. Check Your Eligibility Visit the NYSERDA EmPower+ Portal to use the screening tool. Eligibility is based on your Area Median Income (AMI):
Low-Income (<80% AMI): Eligible for a rebate covering 100% of the cost (up to $1,750).
Moderate-Income (80%–150% AMI): Eligible for a rebate covering 50% of the cost (up to $1,750).
Note: If you receive HEAP, SNAP, or SSI, you are likely pre-qualified.
2. Submit an Application Complete the online application via the MyEnergy NY Portal. You will need to upload:
A copy of your utility bill (ConEd, National Grid, PSEG Long Island, NYSEG, or RG&E).
Proof of income (Tax returns, W-2s, or pay stubs).
Renters: You will need a signed Building Owner Certification form from your landlord.
3. Receive Your Coupon Once NYSERDA approves your application, you will receive an email from AUP@nyserda.ny.gov containing your Unique Coupon Codes. These are your digital vouchers that your contractor will use to lower your bill instantly.
4. Ready to find a contractor? Select an authorized professional from the NYS Clean Heat Contractor Directory.
Alternatively, we invite you to come back to NewWaterHeaterDecisions.com and fill in the form below. We will connect you with 3 qualified New York installers who participate in the NYS Clean Heat and EmPower+ programs and typically quote a competitive standard install flat price before stepping into your home.
By clicking “submit” on the form below, you provide your express written consent to be contacted by up to the following 3 Contractors: Halco Energy, Vigilante Plumbing & Heating, or Isaac Heating & Air Conditioning regarding your quote request. You agree to receive communications via phone, text, or email, including automated technology, even if you are on a Do Not Call list. Consent is not a condition of purchase.
5. Redeem your HERA voucher Present your coupon codes to your selected contractor. They will verify the codes through the NYSERDA portal and deduct the $1,750 (or your eligible amount) directly from your final invoice.
