$4,000
Market rate
The published whole-house customer rebate for an otherwise qualifying single-family project that does not receive an enhanced income or disadvantaged-community tier.
Current 2026 program guide
PSEG Long Island Heat Pump Rebates
PSEG Long Island currently publishes $4,000, $5,000 and $7,500 whole-house customer tiers for qualifying single-family projects. The tier is only one part of approval: the customer, contractor, equipment, load coverage, controls, documentation and project must also meet the current rules.
Published amounts can change and do not establish approval. Confirm the address, complete system and estimated payment in writing before purchase.
Tier determines amount—not project approval
The three published 2026 whole-house tiers
PSEG Long Island determines the customer tier. The project must independently satisfy the current whole-house and equipment requirements.
$5,000
Moderate income or disadvantaged community
The published tier for a verified moderate-income household or a market-rate home in a NYSERDA-designated disadvantaged community. The program determines the applicable tier.
$7,500
Low income
The published whole-house tier for a household that completes the program's low-income verification. Income eligibility is determined through the program—not by the contractor.
Do not add the tiers together. A customer receives the single applicable tier after program verification. Cost caps and other program limits may reduce the final payment.
Project eligibility
Six checks before relying on a rebate
The rebate is not approved because a salesperson names a tier. These project facts should be documented before equipment is ordered.
Customer and contractor
Confirm the PSEG Long Island account, property type, participating-contractor status, income verification or disadvantaged-community status, and current program dates.
Whole-house sizing
For the published single-family whole-house tiers, PSEG states that the system must meet 100–120% of the entire dwelling heating load and requires a Manual J calculation.
Eligible equipment match
Verify the exact indoor and outdoor combination, required product listing, cold-climate capacity, controls and program identifiers. An efficient outdoor unit alone does not establish eligibility.
Primary heat and controls
If fossil-fuel heat remains, the current rules require qualifying integrated controls and the heat pump must operate as the primary heating system. Otherwise, the existing fossil-fuel system must be removed.
Caps and complete scope
Cost caps may apply, and PSEG's 2026 announcement caps rebate levels at five heating tons. Electrical, duct, removal, permit and restoration costs still belong in the complete project price.
Application and final approval
The proposal should identify who submits the application, the estimated tier, required documents and what the customer owes if the program changes, reduces or denies payment.
Operating-cost question
Ask about Rate 580 separately
PSEG Long Island says a customer whose heat pump is the primary heat source may be eligible for Residential Electric Heating Rate 580. The current utility FAQ describes a 40% energy-delivery-charge discount for usage above 400 kWh per month from October through May.
That is not a 40% discount on the complete electric bill. Confirm account eligibility and compare actual supply, delivery, fuel and backup-heat assumptions rather than turning the rate into a universal savings claim.
Read the PSEG heat-pump FAQComparable proposal
What the written estimate should show
Keep the installed project price, rebate assumption and financing terms separate. That makes competing proposals comparable and protects the decision if the program pays a different amount.
- Installed project price before any rebate is subtracted
- Exact matched equipment and current qualifying-list identifiers
- Manual J load, selected capacity and cold-weather performance
- All-electric, dual-fuel or retained-backup operating strategy
- Duct, electrical, controls, removal, permit and restoration scope
- Expected rebate tier, assumptions and application responsibility
- Amount due if the rebate is reduced or denied
- Financing terms shown separately from rebate assumptions
From research to a real project
Choose the next planning path
New or replacement heat pump
Compare ducted, ductless and mixed designs, then verify the complete matched system and written installation scope.
Plan a heat-pump installationFurnace conversion
Compare full conversion, dual-fuel and ductless or mixed options before removing or retaining the existing heat source.
Compare conversion pathsPermits and jurisdiction
Confirm which town or village approvals apply and assign permit, inspection and closeout responsibility in writing.
Review Long Island permitsHomeowner questions
2026 rebate FAQs
How much is the PSEG Long Island heat-pump rebate in 2026?
PSEG Long Island currently publishes whole-house single-family customer tiers of $4,000 for market rate, $5,000 for verified moderate income or a market-rate home in a designated disadvantaged community, and $7,500 for verified low income. Those are program tiers, not guaranteed discounts. The customer, property, contractor, equipment, sizing, controls, project timing, documentation and cost caps must all qualify.
Does every cold-climate heat pump qualify?
No. The program evaluates the complete project. The exact matched equipment and applicable product listing, whole-house load coverage, participating contractor, Manual J sizing, controls or fossil-fuel removal, customer status and current program rules can all matter. A model's efficiency label by itself is not approval.
Can I keep my furnace and still receive a rebate?
The current PSEG guidance allows a supplemental fossil-fuel system only when qualifying integrated controls are used and the heat pump is the primary heating system. Equipment with a furnace component is excluded from the current NEEP-listed cold-climate eligibility described in PSEG's 2026 announcement. Confirm the exact dual-fuel design and program interpretation before purchase.
What is PSEG Long Island Rate 580?
PSEG says customers whose heat pump is the primary heat source may be eligible for Residential Electric Heating Rate 580. Its current FAQ describes a 40% energy-delivery-charge discount for usage above 400 kWh per month from October through May. That is not a 40% discount on the entire electric bill, and account eligibility should be confirmed directly with PSEG Long Island.
Is the former $2,000 federal heat-pump tax credit available for a 2026 installation?
No. Current IRS Form 5695 instructions state that the Energy Efficient Home Improvement Credit cannot be claimed for property placed in service after December 31, 2025. A 2026 proposal should not subtract that former federal 25C credit.
Should the contractor subtract the rebate from the advertised price?
Ask for the installed price before incentives and a separate written rebate estimate. The proposal should state the assumed tier, qualifying equipment, application responsibility, required documents, financing terms and the amount due if the program pays less than expected or denies the application.
Verify the project before counting the rebate
Request a site assessment and a written proposal that separates installed price, current program assumptions, controls, electrical and duct scope, permits and financing.
Primary sources checked
Program details were reviewed against the sources below on August 9, 2026. Utility and tax rules can change; verify current terms before purchase or filing.