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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, State, and Utility incentives apply to you as a 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.

As a Connecticut homeowner you can qualify for DEEP (Department of Energy and Environmental Protection) geothermal geothermal heat pump incentives. Connecticut homeowners can qualify for $1,000s in geothermal incentives. Details are listed below.

Federal Tax Credit
Investment Tax Credit (ITC)
26% off the price of the system in 2020, and 22% off the system price 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.
CT State Incentive
Incentives vary depending on your heating fuel source.
Scroll down to see what incentives you
qualify for.
SEE IF YOUR HOME QUALIFIES

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.

SEE IF YOUR HOME QUALIFIES

How do the incentives work?

Select your location below:
New York
Connecticut

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
Here's what you're entitled to as a Connecticut homeowner.

Both Eversource and United Illuminating offer geothermal heat pump incentives via the Energize Connecticut program (The following municipal utilities are not part of the Energize Connecticut program; Groton, Bozrah, Norwalk, Wallingford, and Norwich).

The Connecticut incentives are limited to $10,000 per household, or a 6.67 ton geothermal heat pump. See the table below for an example of what an average sized home that needs a 5 ton geothermal heat pump system would qualify for in Connecticut.



Heating Fuel
Incentive / ton
5 Ton Heat Pump
Fuel Oil
$1,500
$7,500
Propane
$1,500
$7,500
Natural Gas
$750
$3,750
Electric Resistance
$750
$3,750
Other
$750
$3,750
SEE IF YOUR HOME QUALIFIES