Rebates, Financing & Incentives

What Are Energy Efficiency Rebates and Incentives?

Rebates and other incentives get cash back in your hand quickly after making an upfront investment in home upgrades. They can be available through a variety of programs run by federal, state, or local governments, or even through your utility companies like PSEG Long Island or Long Island Power Authority (LIPA). Some incentives, like the 25C Tax credit, are offered at the federal level.

What Incentives Are Available for Long Island Homeowners?

PSEG Long Island Rebates

PSEG offers a range of rebates and incentives for homeowners looking to upgrade their appliances to more energy-efficient models, emphasizing the adoption of ENERGY STAR® certified products to enhance home energy efficiency and reduce utility bills. Rebates include:

• $50 instant discount on air purifiers

• $35 on dehumidifiers

• $30 on room air conditioners

• $20 on ventilation fans

• Up to $300 on washers and dryers

• Up to $100 on refrigerators and freezers 

• Up to $100 on smart thermostats

• Up to $1,000 for ENERGY STAR® certified heat pump water heaters

• Up to $750 tankless water heaters and gas storage water heaters

These rebates encourage the shift towards high-efficiency products that not only contribute to environmental sustainability but also offer significant long-term savings on energy costs.

Inflation Reduction Act

25C Energy Efficient Home Improvement Tax Credit

IRA tax credits allow you to take a credit equal to 30% of many costs associated with specific energy efficiency upgrades, including:

• Insulation and air sealing ($1,200 annual limit, excluding on-site labor costs)

• Energy audits ($150 limit)

• High-efficiency central AC, heating systems, and water heaters ($600 annual limit)

• Heat pumps, ductless mini-splits, and heat pump hot water heaters ($2,000 annual limit)

These tax credits can be deducted when you file your taxes for the year in which the upgrades were performed or installed. You can even combine IRA tax credits with PSEG rebates to save more. For more information on the fine print and other specifics, call or contact Home Efficiency Experts!

Inflation Reduction Act Rebates

The IRA also created two new rebate programs, which individual states will be responsible for running. Home Efficiency Experts are paying close attention to New York State’s IRA rebate plans and will be updating this page and our customers as we learn more.

How Do I Get an Energy Rebate?

Although each program operates differently, rebates generally require the homeowner to fill out a simple application after they’ve paid for the qualifying services or energy-efficient equipment. But some programs offer instant rebates on specific equipment or services, so for the most up-to-date information regarding all the rebates available to you and how you qualify, it’s best to talk to an experienced local contractor, like Home Efficiency Experts.

NYSERDA Financing for Home Efficiency Upgrades

Energy Finance Solutions offers loans for New York State residents wanting to make energy efficiency upgrades through NYSERDA. These reduced interest rate loans are designed to finance residential energy efficiency improvements such as insulation, air sealing, heat pump installations, and heat pump water heater installations. There are several loan products available, including the Smart Energy Loan, repaid in installments to NYSERDA’s loan servicer; the On-Bill Recovery Loan repaid via an installment charge on your utility bill; and the Renewable Energy Tax Credit Bridge Loan, aimed at financing renewable energy systems. These loans are available for a variety of energy efficiency measures that meet NYSERDA’s minimum efficiency requirements and approval.

To qualify for these loans, applicants must meet specific underwriting criteria, including credit score requirements, debt-to-income ratios, mortgage payment history, and limitations on outstanding collections, judgments, liens, and charge-offs. The application process involves submitting a credit application, income documentation, and, for On-Bill Recovery Loans, recent utility bills. Additionally, NYSERDA offers incentives for qualified customers for energy efficiency and renewable technologies. Homeowners must use authorized NYSERDA participating contractors for the installation of eligible improvements.