Unlock Reduced Electricity Rates with a Heat Pump in New York

At a glance:

• Heat pumps offer both heating and cooling, making them a year-round solution for comfort and energy savings.
• ConEd offers a one-year price guarantee for new heat pump users, ensuring you don’t pay more than your old rate.
• PSEG provides a 40% discount on electricity delivery rates for heat pump users during colder months.
• Rockland & Orange offers $80 per MMBtu saved by heat pumps.

Residents in New York face 50% higher electricity rates than the nationwide average. In an effort to encourage energy-efficient solutions, providers like ConEd, PSEG, and Rockland & Orange are offering special electricity rate discounts for homeowners who upgrade to heat pumps. This blog will walk you through the reasons why heat pumps are a smart choice for your home and how these utility companies are helping to sweeten the deal. If you’ve been looking for ways to save on your electric bill while also reducing your carbon footprint, this is the article for you.

We recently published the ultimate guide to heat pump incentives in New York.

Why Choose a Heat Pump?

Heat pumps are one of the most energy-efficient HVAC systems on the market today. Unlike traditional systems that burn fuel to generate heat, heat pumps transfer heat from one place to another, using far less energy. In the winter, they pull heat from the outside air or ground and bring it inside, while in the summer, they do the reverse—keeping your home comfortable all year long. We wrote a blog explaining how heat pumps perform in extreme temperatures. Spoiler alert, they perform great.

You can also check out our heat pump guide for more details. 

Beyond their versatility, heat pumps can significantly reduce your energy usage and, in turn, lower your energy bills. They’re not only great for your wallet, but they also help reduce your home’s carbon footprint since they run entirely on electricity and don’t emit carbon emissions. By investing in a heat pump, you’re investing in a cleaner, greener future for your home and the environment.

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How to lower your Con Edison Electricity Rates with a heat pump

ConEd is making it easier than ever to transition to a heat pump system by capping electricity rates for the first 500 customers who install either an air-source heat pump or a geothermal system. By doing this, ConEd guarantees that if your electricity bills are higher on their new rate plan than they were on your previous rate after one year, they will credit you the difference. This means you get to enjoy the benefits of an efficient heat pump without worrying about the possibility of paying more than what you’re used to.

For more ways ConEd is helping people save, check out this article on everything you need to know about heat pump rebates from ConEd. Homeowners are eligible to receive up to $10,000 when they upgrade their heating and cooling. 

How to get reduced PSEG electricity rates with a heat pump

PSEG is also offering savings for homeowners who choose to install a heat pump. Between October 1 and May 1, heat pump users can receive a 40% discount on the electricity delivery rate for any usage above 400 kWh per month. This discount can add up quickly during the colder months when your home’s heating demand is at its highest.

Let’s say your household uses about 1,000 kWh of electricity per month. With PSEG’s discount, you would receive 40% off the delivery charge on the 600 kWh that’s above the 400 kWh baseline. For the average home, this could mean substantial savings—potentially reducing your electric bill by hundreds of dollars each year.

PSEG homeowners can expect to also receive an average of $5,000 when they upgrade to a heat pump. 

Reduced Orange & Rockland energy rates

Orange & Rockland offers $80 per MMBtu of energy sayings for custom heat pump solutions for hot water. This means that for every million BTUs of energy savings from a custom heat pump, you can save $80. 

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The average heat pump can result in anywhere from 20 to 50 MMBtu in savings when replacing an older, less efficient heating and cooling system, which can lead to $1600 to $4000 in savings. 

Start enjoying those heat pump savings

Switching to a heat pump offers year-round comfort, energy efficiency, and long-term cost savings. ConEd, PSEG, and Rockland & Orange have stepped up with special rate programs to ensure that homeowners who make the switch are rewarded with lower energy bills. Whether it’s ConEd’s one-year price guarantee or PSEG’s 40% discount on electricity delivery, there’s never been a better time to upgrade.

At Tetra, we make the entire process of switching to a heat pump simple and stress-free. From offering free virtual estimates to helping you apply for rebates and managing the installation from start to finish, we’re here to make sure you get the most out of your new HVAC system. Don’t miss out on reducing your energy bills and unlocking thousands in rebates—schedule your free virtual estimate with Tetra today!