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Understanding the Federal and State Incentives for Geothermal Heat Pumps

Everything you need to know about geothermal heat pump incentives

What Federal and State incentives apply to you as a NY state homeowner?

In 2018, Department of Energy passed a Federal Tax Incentive for geothermal ground source heat pumps called the Investment Tax Credit (ITC). In the form of personal tax credits, these incentives save Dandelion customers thousands of dollars.

As a New York State homeowner, you qualify for the New York State Energy Research and Development Authority (NYSERDA) New York State Clean Heat Program. The State of New York and the 6 electric utilities that serve New York State have allocated substantial funding for ground source heat pump installations. Dandelion is an approved Participating Contractor in the program.

Federal Tax Credit
Investment Tax Credit (ITC)
30% off the price of the system in 2019
26% in 2020, 22% in 2021
NY State Incentive
Under the New York State Clean Heat program each utility offers a unique set of incentives.
Scroll down to see what incentives your
utility offers.
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Why is sooner better than later?

In 2020, the federal tax incentives known as the Investment Tax Credit (ITC) will cover 26% of a Dandelion geothermal system. However, the percentage covered by the ITC will decrease next year with tax credits covering 22% of a ground source heat pump system in 2021, and potentially 0% in 2022.

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How do the New York State rebates work?

New York State's Clean Heat Program is administered by the homeowner’s utility. Let’s go over some important details to explain how these incentives are allocated.

Each utility has a unique incentive.

That means a homeowner who uses Con Edison will qualify for a different incentive amount than a homeowner who uses National Grid.

The incentive amounts are based on the installed heat pump’s total heating capacity BTUH.

Utility incentives range between $0.15 per BTUH and $0.285 per BTUH, depending on the utility.

A geothermal heat pump containing a desuperheater qualifies for an additional incentive.

Many, but not all, heat pumps installed by Dandelion include a desuperheater ─ a component that uses existing heat in the system to warm water.

This incentive is either $100 or $150 per heat pump, no matter its BTUH, depending on the utility.
That means a homeowner who uses Con Edison will qualify for a different incentive amount than a homeowner who uses National Grid.
Utility incentives range between $0.15 per BTUH and $0.285 per BTUH, depending on the utility.
Many, but not all, heat pumps installed by Dandelion include a desuperheater ─ a component that uses existing heat in the system to warm water.

This incentive is either $100 or $150 per heat pump, no matter its BTUH, depending on the utility.
Let’s dive into each utility’s incentives available to you by your utility after you install a new geothermal heat pump system in your home.
Utility
Geothermal
Heat Pump
Desuperheater
5 Ton Heat Pump
47,900 BTUH
5 Ton Heat Pump
With Desuperheater
Central Hudson
$0.20/BTUH
$150
$9,580
$9,730
Con Edison
$0.285/BTUH
$150
$13,802
$13,952
National Grid
$0.15/BTUH
$100
$7,185
$7,285
NYSEG / RGE
$0.15/BTUH
$100
$7,185
$7,285
Orange & Rockland
$0.20/BTUH
$150
$9,580
$9,730
SEE IF YOUR HOME QUALIFIES