New York Heat Pump Leasing & Installation Guide
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
Buy it or finance it. Your comfort, your call
There’s no wrong way to get cozy. Here’s how the options stack up, so you can choose what works best for you.
| Comfort Plan | Cash | Loan | |
|---|---|---|---|
| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
| Maintenance included | Yes | No | No |
| Eligible for incentives | Yes | No | No |
Get a quote See how Comfort Plan works
New York Heat Pump Rebates & Incentives
State and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to New York homeowners.
NYS Clean Heat Program
Up to $10,000
The NYS Clean Heat Program is a statewide, utility-administered initiative providing substantial rebates for the installation of high-efficiency heat pumps, including air-source, ground-source (geothermal), and heat pump water heaters. The program’s continuity through 2026 and 2027 is assured, as it has been reauthorized and funded with a budget of $5.36 billion for the 2026-2030 program period.
Eligibility: Beginning in 2026, the NYS Clean Heat program will offer incentives for projects in small residential one- to four-family homes. Residential electric customers in one- to four-family buildings are eligible to receive incentives from the Program.
EmPower+ Program
Up to $10,000
The EmPower+ program provides no-cost energy-efficiency solutions to income-eligible New Yorkers. This program is offered through a partnership with the New York State Energy Research and Development Authority (NYSERDA).
Eligibility: Eligibility is based on your household size and annual household income.
Comfort Home Program
$2,500 – $3,000
Save now with thousands of dollars in available rebates through New York State energy efficiency programs EmPower+ or Comfort Home.
Eligibility: Comfort Home packages start with a no-cost consultation and in-home energy assessment and include personalized information by a trained and qualified Comfort Home contractor.
Federal IRA Tax Credit
Up to $2,000
The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Eligibility: Available to homeowners who purchase and install a qualifying heat pump system.
New York Electricity Prices
New York’s electricity costs are climbing faster than most of the country—and that directly impacts your home heating and cooling bills.
Price of Energy: New York vs National Average
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| Year | New York | US Average |
|---|---|---|
| 2021 | 19.5¢ | 13.7¢ |
| 2022 | 22.1¢ | 15.0¢ |
| 2023 | 22.2¢ | 16.0¢ |
| 2024 | 24.4¢ | 16.5¢ |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
New York Utility Providers
New York electricity rates vary significantly by utility provider. Based on 2023 data, costs ranged from 11.66¢ to 31.58¢ per kWh—well above the national average of 16.0¢ per kWh and the state average of 22.20¢ per kWh.
| Provider | Rate (per kWh) | Change (%) |
|---|---|---|
| Consolidated Edison Co-NY Inc | 31.58¢ | +97% |
| Niagara Mohawk Power Corp. | 16.97¢ | +6% |
| Long Island Power Authority | 22.33¢ | +40% |
| New York State Elec & Gas Corp | 15.53¢ | -3% |
| Rochester Gas & Electric Corp | 16.13¢ | +1% |
| Central Hudson Gas & Elec Corp | 25.13¢ | +57% |
| Constellation NewEnergy, Inc | 11.66¢ | -27% |
| Orange & Rockland Utils Inc | 23.47¢ | +47% |
| NY Average | 22.20¢ | +39% |
| US Average | 16.0¢ | — |
Source: US Energy Information Administration, 2023, Form 861, Table 6
Frequently Asked Questions
Do heat pumps work well in New York?
Yes, heat pumps work well in New York. Modern cold-climate heat pumps are designed to operate efficiently even when temperatures drop below freezing.
How much does a heat pump cost in New York?
Heat pump costs in New York typically range from $5,000 to $20,000 for a complete installation, depending on your home’s size and existing infrastructure.
What are the best heat pump brands for New York homeowners?
Top heat pump brands for New York homeowners include Mitsubishi, Carrier, Lennox, Trane, and Daikin.
Are there heat pump rebates available in New York?
Yes, New York homeowners can access several heat pump rebates and incentives.
Should I lease or buy a heat pump in New York?
The choice between leasing and buying a heat pump in New York depends on your financial situation and preferences.
Is a heat pump worth it financially in New York?
Yes, heat pumps are financially worth it in New York. They typically use 50-65% less electricity than traditional heating systems.
What size heat pump do I need for my New York home?
The right heat pump size for your New York home depends on factors like square footage, insulation quality, and window efficiency.