Mini Split HVAC Rebates in NYC
If you have been putting off upgrading your heating and cooling system because the upfront cost feels out of reach, this article is for you.
New York City homeowners can currently access thousands of dollars in rebates on mini split installations through a combination of state programs, utility incentives, and – for qualifying households – free installations through the NYSERDA EmPower+ program. The catch is that most people either do not know these programs exist, or they miss out because they do not follow the right steps in the right order.
This guide lays out every major rebate available in NYC in 2026, who qualifies, how the programs stack together, and the exact process to follow so you do not leave money on the table.
Why New York Is Spending Millions to Get Mini Splits Into Homes
This is not charity. There is a clear policy reason behind the incentives.
Buildings are responsible for roughly 71 percent of all greenhouse gas emissions in New York City, according to data from the NYC Council. The city is legally required to cut emissions from its largest buildings 40 percent by 2030 under Local Law 97, and the state must hit 85 percent below 1990 levels by 2050 under the Climate Leadership and Community Protection Act.
That means moving buildings away from gas, oil, and steam heat toward electric alternatives – and mini split heat pumps are one of the most practical ways to do that in NYC’s existing housing stock, where most apartments and smaller homes cannot accommodate new ductwork.
The incentives are generous because they have to be. The state and utilities need high adoption rates to hit their targets, and the programs are genuinely under-enrolled. That means funding is currently available, but history has shown it does not stay that way – Con Edison already had to pause its Clean Heat program once due to high demand before relaunching it.
The Main Rebate Programs Available to NYC Homeowners in 2026
1. Con Edison Clean Heat Program – Up to $10,000 Off Your Invoice
For most homeowners in the Con Edison service area, this is the biggest single rebate available right now.
The key thing to understand about Con Edison Clean Heat is that it works as an instant rebate, not a mail-in reimbursement. Your contractor applies the incentive directly to your invoice at the time of installation. You do not pay the full amount and wait for a check.
Current incentives cover up to $10,000 for qualifying air-source heat pump installations, with an additional $4,000 available if you fully remove an existing fossil fuel heating system – a gas boiler, oil furnace, or similar equipment. For homes located in designated Disadvantaged Communities, the rebate cap climbs higher, and the incentive can cover up to 85 percent of project costs.
Eligibility requires an active Con Edison electric account, a property type that qualifies (single-family homes, 2-4 family homes, and condo or co-op owners in 5+ unit buildings all qualify), and installation by a Con Edison Participating Contractor. The system must be a heat pump – cooling-only units do not qualify. Most modern ductless mini splits are heat pumps by default, but confirm before buying.
One critical point about timing: Con Edison requires a pre-inspection before installation begins. Your contractor handles the application and scheduling, but the sequence is non-negotiable – application, then pre-inspection, then an approval letter, then installation. Do not install first and apply after. That single mistake disqualifies you from the rebate entirely.
The Con Edison Clean Heat program has a three-year authorized budget of $360 million. As of September 2025, roughly $85 million had been spent with around $40 million remaining in the 2023-2025 budget cycle, according to a Con Edison program presentation. The program continues into 2026, but funding levels and incentive rates are reviewed annually.
2. NYSERDA EmPower+ Program – Free or Heavily Subsidized for Income-Qualifying Households
The NYSERDA EmPower+ Program is a separate track designed specifically for lower and moderate-income New York households. Qualifying households can receive heat pump installation, insulation, air sealing, and other home energy upgrades at little or no cost.
Eligibility is income-based, calculated as a percentage of your Area Median Income relative to your location and household size. Because NYC has a high AMI, a family of four earning $80,000 or more may still qualify – many households assume they will not be eligible when they actually would be. It is always worth running the numbers.
Households at or below 60 percent of the State or Area Median Income can receive up to 100 percent of eligible project costs. For downstate households – which includes NYC – the funding cap is $14,000 for the initial unit in a single-family rental or owner-occupied home, with additional funding per unit in multi-family buildings.
Households between 60 and 80 percent AMI may qualify for 50 percent cost coverage. NYSERDA has also incorporated federal IRA funding into EmPower+, meaning the combined state and federal HEAR funds can cover up to $24,000 per qualifying household when heat pumps, weatherization, and electrical upgrades are all included.
If you want to check eligibility without committing to anything, the free home energy assessment through the NYSERDA EmPower+ program is the right first step. A qualified contractor reviews your home at no cost and tells you which programs you qualify for.
One important stacking rule: EmPower+ and the Con Edison Clean Heat rebate cannot be combined on the same equipment in the same project. You go through one track or the other depending on your income level. Both tracks remain stackable with the federal tax credit.
3. Federal 25C Tax Credit – Available for 2025 Installations
If your system was installed and operational by December 31, 2025, you can still claim the federal Section 25C energy efficiency tax credit when you file your 2025 tax return. The credit covered 30 percent of the installed cost, capped at $2,000 per year for heat pump systems.
For 2026 installations, the 25C credit as it existed under the Inflation Reduction Act has expired. The federal rebate landscape has shifted. If you are planning a new installation this year, the primary financial incentives are the state and utility programs described above, along with any EmPower+ and HEAR funding for income-qualifying households.
The federal HEAR (High-Efficiency Electric Home Rebate) program, which flows through NYSERDA’s EmPower+ pipeline for income-qualified households, remains active and provides up to $8,000 toward heat pump costs on top of state funding.
How to Stack Multiple Rebates
The programs are specifically designed to complement each other, and understanding how they layer together is where you maximize your total savings.
For a homeowner in the Con Edison service area who does not qualify for EmPower+, the stack looks like this: the Con Edison Clean Heat rebate reduces your contractor invoice at installation; the fossil fuel removal bonus adds $4,000 if you fully remove your existing gas or oil system; and a smart thermostat rebate of $85 is available after enrollment in Con Edison’s Smart Usage Rewards program.
For an income-qualifying household going through EmPower+, the stack looks different: EmPower+ and HEAR funding can cover most or all project costs at zero out of pocket, and those funds stack with utility incentives available through the program’s participating contractor network.
The practical result is that a full home upgrade – replacing gas or oil heat with a multi-zone mini split system – can be completed for a net cost of close to zero in many scenarios, once all applicable incentives are applied.
Who Qualifies for Mini Split Rebates in NYC?
Con Edison Clean Heat
You qualify if you own a single-family home, a 2-4 family building, or a condo or co-op unit in a 5+ unit building; hold an active Con Edison electric account; are located within the Con Edison service territory (most of NYC and Westchester); and use a Con Edison Participating Contractor for the installation. New construction does not qualify – the building must be existing or a gut rehab. NYPA electric customers are also excluded.
NYSERDA EmPower+
Eligibility is income-based and open to both homeowners and renters, though renters generally need landlord cooperation for heating system installations. The NYSERDA EmPower+ portal has an eligibility tool where you can enter your county and household size to check against the current 2026 income guidelines. Do not assume you earn too much without checking – NYC-area thresholds are adjusted for local cost of living.
What Counts as a Qualifying Mini Split System?
Not every ductless mini split qualifies for every rebate program. These are the factors that matter.
ENERGY STAR certification is required for most incentive programs. Cold Climate Air Source Heat Pump (ccASHP) rating matters in New York winters – some NYSERDA programs require certification that the system maintains efficiency in temperatures at or below 5 degrees Fahrenheit. SEER2 and HSPF2 are the current federal efficiency standards, and most rebate programs specify minimum thresholds. Higher ratings often correspond to larger rebates.
Ask your contractor for the AHRI certificate – the Air-Conditioning, Heating, and Refrigeration Institute document that officially confirms a specific outdoor-indoor unit pairing meets its efficiency claims. This document is what the rebate programs actually check.
Brands like Mitsubishi, Daikin, and LG frequently appear in qualifying system lists, but the specific model combination matters more than the brand name. Confirm the exact model qualifies before any purchase.
If you want to understand what a qualifying installation actually costs before rebates, the mini split installation costs in NYC guide breaks that down in detail.
The Correct Process, Step by Step
Getting the order right matters more than anything else with these rebates.
Start by checking eligibility. Use the NYSERDA EmPower+ portal or the Con Edison Clean Heat page to confirm your property type, account status, and income level. If you are unsure whether you qualify for EmPower+, schedule a free home energy assessment – a qualified contractor reviews your situation at no cost.
Use only a participating contractor. Con Edison and NYSERDA both maintain approved contractor lists. Using a non-participating contractor, regardless of skill level, disqualifies you from most rebates.
For Con Edison Clean Heat, submit your application, receive a pre-inspection, and wait for your Preliminary Incentive Offer Letter and Notice to Proceed before any installation work begins. Installation before receiving that letter means forfeiting the rebate.
After installation, there is a post-inspection where Con Edison or NYSERDA verifies the completed work. Documentation deadlines matter – some programs require registration or paperwork within 30 to 90 days of installation.
For income-qualified households going through EmPower+, the participating contractor manages most of the process. Your primary responsibilities are confirming eligibility and providing income documentation.
Common Mistakes That Cost NYC Homeowners Their Rebates
Installing before getting Con Edison pre-approval is the most common and most costly mistake. There is no workaround once installation happens ahead of approval – the rebate is gone.
Buying a system that is not ENERGY STAR certified eliminates eligibility for the federal credit and weakens your position with state and utility programs. Always request the AHRI certificate.
Assuming you do not qualify for EmPower+ without checking is another missed opportunity. Plenty of NYC households in the $80,000 to $100,000 income range qualify, depending on household size.
Forgetting to document fossil fuel removal, if you are replacing gas or oil heat entirely, means potentially missing an additional $4,000 bonus. Completing the documented removal process is a separate step that your contractor should flag – make sure it is part of the scope of work.
Real-World Cost Examples
These scenarios illustrate how the incentives play out in practice for NYC households.
A condo owner in Brooklyn installs a single-zone mini split to replace a window AC unit. The installed cost comes to $3,500. After the Con Edison Clean Heat rebate of approximately $2,500, the out-of-pocket cost at installation is $1,000.
A homeowner in Queens replaces a gas boiler with a 3-zone mini split system. The installed cost is $14,000. After a $10,000 Con Edison Clean Heat rebate and a $4,000 fossil fuel removal bonus, the net cost before any additional incentives is close to zero.
An income-qualifying family in the Bronx receives insulation, air sealing, and a heat pump through the EmPower+ program. The total project value exceeds $12,000. The cost to the household is $0 under the program’s full coverage tier.
You can see more on how heat pump system costs break down, and what factors drive the price range, in the air source heat pump costs in New York City article.
The Role of Air Sealing and Insulation in Any Heat Pump Project
Installing a heat pump in a drafty, poorly insulated home is like running your air conditioning with the windows open. The system works harder, efficiency drops, and your energy bills do not fall the way they should.
This is why NYSERDA’s programs, and the EmPower+ process in particular, start with a home energy assessment that looks at the whole building envelope before recommending equipment. In many cases, air sealing and insulation services are completed alongside or before the heating equipment installation.
Addressing both at the same time is also the most financially sensible approach. EmPower+ covers both weatherization and heating upgrades together under its funding cap, so there is no reason to treat them as separate projects.
How to Get Started
The fastest and most risk-free way to understand what your specific home qualifies for is the free home energy assessment offered through the NYSERDA EmPower+ program.
A qualified contractor visits your home, identifies where energy is being lost, and maps out which rebate programs apply to your situation. There is no commitment, no cost, and no paperwork on your end at that stage. You walk away knowing exactly what you qualify for and what the net cost of an upgrade would be.
Find Out What Rebates Your Home Qualifies For
As a NYSERDA-approved contractor serving NYC through nyserdaempowerprogram.com, we help homeowners access Con Edison Clean Heat rebates, EmPower+ funding, and every available NYSERDA incentive. Schedule a free home energy assessment and find out the real net cost of upgrading your heating and cooling system.
Frequently Asked Questions
Do I need to own my home to qualify for these rebates?
The Con Edison Clean Heat rebate generally requires you to be the property owner or account holder. EmPower+ serves both owners and renters, though renters typically need landlord cooperation for heating system installations.
Can I get a rebate on a cooling-only mini split?
No. Con Edison Clean Heat applies to heat pump systems that provide both heating and cooling. Cooling-only units do not qualify. Most current ductless mini splits are heat pumps by default.
How long does the process take?
For Con Edison Clean Heat, the rebate is deducted from your invoice at installation – there is no waiting period after. For EmPower+, the process from application to completed installation typically takes two to four months depending on documentation, scheduling, and program demand.
Can I get rebates on a replacement system if I already have an older mini split?
In many cases, yes. Replacing an older, lower-efficiency unit with a qualifying high-efficiency heat pump may still be eligible. Confirm with a participating contractor whether your specific replacement scenario meets program criteria.
What is the maximum I can realistically save?
For a full home upgrade replacing fossil fuel heating with a multi-zone mini split in the Con Edison territory, combined incentives can reach $14,000 or more before any federal credits. Income-qualified households through EmPower+ can have the entire project covered at no cost.
