Small Business Heating & Cooling

Small businesses and nonprofits have several options for renewable heating, including heat pumps, and pellet boilers. These are green heating solutions that can help you save money, as well.

Low-interest financing options are also available.

In addition to the NYSERDA and utility incentives mentioned below, there are also federal incentives available for many of these systems (e.g., 30% federal tax credit and 26% state tax credit for a geothermal system).

HEAT PUMPS

WHAT IS A HEAT PUMP?

Heat pumps, like air conditioners or refrigerators, use electricity to move heat from a cool space to a warm space. Heat pumps can heat, cool, and dehumidify a space, and are much more efficient than electric resistance heat. Most heat pumps to require a backup heat source for the coldest winter days.

Check out this video to learn more.

AIR-SOURCE HEAT PUMPS

Cold climate air-source heat pumps utilize heat from the outside air to warm your home, even in the middle of winter. Ducted and ductless systems are available.

GROUND-SOURCE HEAT PUMPS

Also known as geothermal, ground source heat pumps remove heat from underground, and are more efficient than air source heat pumps. There are two significant incentives for geothermal heat pumps. Both NYSEG and National Grid currently offer a rebate of $1,500 per 10,000 BTUH for geothermal technologies. Federal tax credit of 30%, and State tax credit of 25%.

Check out this video to learn more.

COMMERCIAL INCENTIVES

Air-source and ground-source (geothermal) heat pumps are increasingly being used in commercial buildings, providing heat in winter and cooling in summer, with very low operational costs.

NYSERDA’s NYS Clean Heat program offers significant rebates on heat pump technology through NYSEG and National Grid.  

If interested, contact a local heat pump installer. They will be able to give you a quote on the system and help you access the rebates.

There are two significant incentives for air source and geothermal heat pumps. Both NYSEG and National Grid currently offer a rebate of $1,500 per 10,000 BTUH for heat pump technologies. Federal tax credit of 30%, and State tax credit of 25%.

NATURAL GAS

If you are heating with natural gas you explore natural gas incentives from National Grid and NYSEG customers.

BIOMASS

High-efficiency biomass heating products qualify for a 30% tax credit – capped at $2,000 annually – and is available for appliances installed between January 1, 2023, and December 31, 2032. The credit can be used on the purchase and installation costs of qualifying appliances. To be eligible for the tax credit, an appliance must have a thermal efficiency of at least 75 percent per the higher heating value (HHV) of the fuel. 

OTHER INCENTIVES

In addition to the incentives described above, there is a Federal Tax Credit for up to $300, which can be used for any of the heating systems described above.

MUNICIPAL ELECTRIC CUSTOMERS - SPECIAL REBATES AVAILABLE

Customers of municipal electric utilities may not be eligible for some of the NYSERDA programs above like EmPower NY and Assisted Home Performance. However, many municipal electric utilities have special rebates and programs to help with energy efficiency through the Independent Energy Efficiency Program (IEEP). See what your municipal electric utility offers here.