What O&R pays in 2026
Amounts are for single-family homes. Apartments and small homes receive about half. The incentive is applied by a participating contractor.
Air-source heat pump
Non-DAC: Category 2 $4,000 ($8,000 Weatherized Tier); 2b $7,000 ($12,000). DAC: Category 2 $6,000 ($10,000); 2b $9,000 ($14,000). Partial to full load $4,000, or $2,000 for an apartment.
Ground-source retrofit
$18,000, or $23,000 in the Weatherized Tier, outside a disadvantaged community; $20,000 or $25,000 inside one.
Heat pump water heater
ENERGY STAR with a UEF rating through retail or midstream channels.
Weatherized Tier
O&R's Sealed Comfort Plan is one of the approved weatherization programs that qualifies a home.
The cap is 70% of project cost, or 85% in a disadvantaged community.
Sealed Comfort Plan as a route to the higher tier
The manual names O&R's Sealed Comfort Plan among the approved weatherization programs. A home that completes it can claim the Weatherized Tier even if it was built long before 2010 and would not pass the heating-load test unaided. For a typical Category 2 job that is $4,000 more, so the sealing work can pay for itself on the heat pump alone.
Comparing O&R with your neighbours
A household just across a utility line may sit in National Grid or Central Hudson territory. O&R and National Grid use the same single-family figures, but Central Hudson has no DAC column and a higher cap. Do not borrow a figure from another page without checking whose electric customer you are.
The paperwork the contractor handles
The contractor registers the job, supplies the Manual J load calculation, confirms the equipment is on the NEEP cold-climate list and applies the incentive to your invoice. You supply proof of the electric account and, for a disadvantaged-community amount, your address. If you intend to remove a fossil system, tell the contractor early, because Category 2b has its own documentation.
What a typical decision looks like
Take a single-family home outside a disadvantaged community with a gas furnace. A Category 2 job that keeps the furnace as backup pays $4,000, or $8,000 if the home qualifies for the Weatherized Tier. The same house with the furnace decommissioned pays $7,000, or $12,000. The gap between the two is a reason to ask your contractor to price both: removing the furnace costs less to run in the long term and also raises the incentive, but it removes your backup, so it suits homes where the heat pump is sized with real margin.
Homes that rely on oil or propane have a stronger case for 2b, because there is no gas-line capping step and the fuel cost saved is larger.
Income-based programs
NYSERDA's EmPower+ gives free upgrades to low-income households and cost-sharing to moderate-income households. Ask which program leads, since the two can overlap on weatherization.
How to claim O&R's Clean Heat incentive
- Check that O&R supplies your electricity.
- Look up whether your address is in a disadvantaged community.
- Get quotes from NYS Clean Heat participating contractors.
- Confirm the quote has a Manual J load calculation.
- The contractor submits and the incentive appears on your invoice.
Guides
Common questions
Does O&R pay the same as National Grid?
For single-family air-source heat pumps, yes. Ground-source amounts for disadvantaged-community homes differ.
What is the most O&R pays?
$14,000 on air-source and $25,000 on a ground-source retrofit, both for a disadvantaged-community home in the Weatherized Tier.
What is the Sealed Comfort Plan?
An O&R weatherization program that the manual accepts as a route to the Weatherized Tier.
Is there a cap on the incentive?
Yes: 70% of project cost, or 85% in a disadvantaged community.
Can I apply directly?
The contractor applies for the heat pump. Water heaters can be claimed by the homeowner if codes are followed.
By Sam Menard. Sources, last read October 3, 2026: NYS Clean Heat Program Manual, version 3, NYS Clean Heat, NYSERDA EmPower+, NYSERDA Comfort Home. All rebate programs →