Everything You Need to Know About Heat Pump Rebates from PSEG

As a homeowner, you’re always faced with decisions to make around updates to your home. And those updates usually come with a price tag. Upgrading your home’s current heating and cooling system to a heat pump is no exception, even though it can offer long-term savings over time. If you feel like navigating the rebate programs for PSEG can be a maze, you’re not alone. In this article, you’ll find all the important details you need to get the process started.

PSEG:

Who is eligible: PSEG Long Island residential customers.

What kinds of heat pumps are eligible for rebates?: Air-Source Heat Pumps, Ground-Source Heat Pumps, and Air to Water Heat Pumps.

Rebate amounts: The average customer can expect to receive between $500 to $1,000 per 12,000 BTU in rebates. Lower-income customers can get larger rebates between $500 and $4,000. Since most systems land around 40,000 to 76,000 BTU, the average person could save between $1,666 and $6,333. Lower-income customers could save even more, between $1,666 and $25,333.

Timing requirements: Your heat pump must have been purchased and installed between 1/1/2024 and 12/31/2024, and your application must be submitted within 90 days of your heat pump purchase. You’ll most likely get your rebate check in about 60 days.

Equipment requirements: Your heat pump must be ENERGY STAR certified and listed on NEEP’s Cold Climate Air Source Heat Pumps list at the time of purchase.

Can you keep your existing heater?: Yes, but it can only be used as a backup. You can install integrated controls to link your heat pump to your existing heater. Your controls must be programmed to 1) make your heat pump the default heating system for your home and 2) only use your previous heater as an additional heat source in extreme temperatures.

Income restrictions: While there are no income restrictions through PSEG, you may qualify for free installation with little to no out-of-pocket costs based on your household size and income. Here are a few examples:

• Households of 1 with a monthly income of $3,035 or less.
• Households of 4 with a monthly income of $5,838 or less.
• Households of 6 with a monthly income of $7,706 or less.

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For more information on income eligibility, check this link out.

Pay for your heat pump upgrade through your utility bill. If you receive either electric or gas service from PSEG, you may qualify for an on-bill loan repayment program. Instead of paying for your heat pump upgrade upfront, this program allows you to take out an interest-free loan from PSEG and have the loan payments added to your monthly utility bill. The idea is that over time, the savings from your heat pump update will offset the cost of the loan payments.

All customers may qualify for an on-bill repayment term of 84 months or 7 years for up to $15,000 of your total project.

Some customers who meet the low-income requirements can get repayment terms of 84 months (7 years) on amounts of $10,000 or less or pay over 120 months (10 years) on projects that cost between $10,001 and $15,000.

Additional rebates for your heat pump As part of the Inflation Reduction Act, you can now get significant rebates and tax incentives for purchasing and installing a heat pump. If your household is below 80% of your area’s median income, you can get 100% of your new heat pump covered up to $8,000. If your income is between 81-150% median income, you’ll get up to 50% of your heat pump expenses covered. If your income is above 150% median income, you can still get a 30% tax credit of up to $2,000.

EmPower+ is another great program that offers free installations for projects up to $10,000 for low-income households and $5,000 for moderate-income households.

The idea here is that the state wants to help you save on your energy-efficient upgrades as much as possible. What’s even better is that these rebates can be claimed in addition to the ones from your energy provider. Talk about a win-win.

In conclusion There are a lot of details to keep in mind when picking your heat pump, especially all the different rebates and incentives to help maximize your savings. Luckily, the experts at Tetra can help from start to finish. Get the process started today and book a consultation with a team member.

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