Oyster Bay Heat Pump Rebates 2026: PSEG Long Island

What Oyster Bay homeowners can really get in 2026, checked against PSEG Long Island and NYSERDA on October 3, 2026.

Short answer: In Oyster Bay, the main heat pump rebate is PSEG Long Island’s heat pump rebate: $4,000 (or $5,000–$7,500 if you qualify on income or live in a DAC) for a whole-home system, taken off your contractor’s bill. It is one rebate — not several that add up. Lower-income households can get much more through EmPower+, and the federal tax credits ended on December 31, 2025.

How much is the PSEG Long Island heat pump rebate in Oyster Bay?

Amounts for a single-family home. You get one line from this table, not several.

What you installStandardIn a Disadvantaged Community
Whole-home heat pump, market rate$4,000$5,000
Whole-home heat pump, moderate income (under 80% AMI)$5,000$5,000
Whole-home heat pump, low income (under 60% AMI)$7,500$7,500

PSEG Long Island is not part of NYS Clean Heat. The heat pump must be on the NEEP cold-climate list, sized for the whole home, installed by a participating contractor, and pre-approved before work starts.

Open

Heat pump: PSEG Long Island’s heat pump rebate

Up to $7,500

Best case for a whole-home system; most homes get less, as the table shows.

What makes Oyster Bay different

The Town of Oyster Bay is in Nassau County and is served by PSEG Long Island for electricity and National Grid for gas. Most homes are on gas, so the main reason to switch is cooling plus heating in one system — savings versus gas are smaller than versus oil.

The Town of Oyster Bay stretches from the North Shore to the South Shore across Nassau County, with a mix of large older estates and dense post-war developments like Levittown-style capes and ranches.

Post-war capes and ranches are often easy candidates: simple layouts and existing ducts in many of them.

What does not stack

Long Island is not part of NYS Clean Heat, so there is no second state rebate. There is no separate federal HEAR cheque — New York delivers it through EmPower+. The federal 25C/25D tax credits ended December 31, 2025.

Income-qualified? EmPower+ can cover far more than the utility rebate. Check the state DAC map too — it can raise your amount.

What to do next in Oyster Bay

  1. If your home is a post-war cape or ranch, ask about a ducted system using your existing ducts.
  2. Compare your gas bill to a heat pump estimate before deciding.
  3. Get 2–3 quotes and ask each contractor to show the rebate tier on the quote.

More for Oyster Bay:

Next step: compare top-rated local installers, ranked by Google reviews — free for homeowners. See the top-rated heat pump installers in Oyster Bay and top-rated solar installers in Oyster Bay, ranked by Google reviews. See your city’s rebates →

Common questions

How much is the heat pump rebate in Oyster Bay?

PSEG Long Island’s heat pump rebate pays $4,000 (or $5,000–$7,500 if you qualify on income or live in a DAC) for a whole-home heat pump in Oyster Bay, depending on home size, whether you remove the old system, and DAC status.

Is a heat pump worth it in Oyster Bay if I already have gas?

It can be, especially if you also need new AC, since one system does both. The savings versus gas are smaller than versus oil, so ask for a bill estimate with your actual rates.

Is the federal tax credit still available for heat pumps?

No. The federal 25C and 25D credits ended for anything installed after December 31, 2025.

Sources, checked October 3, 2026: PSEG Long Island heat pump rebates, NYSERDA EmPower+, NYSERDA Comfort Home, NYS Disadvantaged Communities map, IRS: 25C credit.

Category Deep Dives

Dedicated pages for each rebate category in Oyster Bay, with sourced figures, confidence notes, and local installers:

Rebate finder

Every Oyster Bay rebate program, by category.

These are the real, published rebate amounts from our Oyster Bay category pages (PSEG Long Island territory). Filter by category below.

Solar

NY-Sun Affordable Solar (income-eligible)

No PSEG rebate; ~$0.40/watt (state)

Confirmed negative finding: PSEG Long Island offers no solar hardware rebate. The only option is NY-Sun's Affordable Solar program (~$0.40/watt) for households at or below ~80% area median income; market-rate homeowners get net metering + the 25% state tax credit only.

Source: /us/ny/pseg/oyster-bay/solar/ · PSEG Long Island
Battery

PSEG Long Island battery storage program

Program exists, amount unverified

Long Island is excluded from NYSERDA's statewide storage block — PSEG runs its own separate incentive, but no current $/kWh figure was confirmed in this research pass.

Source: /us/ny/pseg/oyster-bay/battery/ · PSEG Long Island
Insulation

PSEG Long Island home weatherization rebate

$1,000–$6,250

Up to $1,000 for market-rate customers; income-eligible households can access an enhanced tier up to $6,250.

Source: /us/ny/pseg/oyster-bay/insulation/ · PSEG Long Island
Water heater

PSEG Long Island heat pump water heater rebate

Up to $1,200

Pays up to $1,200 for an ENERGY STAR-certified electric heat pump water heater, limited to one per account every 5 years.

Source: /us/ny/pseg/oyster-bay/water-heater/ · PSEG Long Island
Windows

Windows & doors

Bundled, no standalone figure

No standalone PSEG windows/doors rebate was found — treat as bundled under weatherization rather than a separate program.

Source: /us/ny/pseg/oyster-bay/windows-doors/ · PSEG Long Island
EV charger

PSEG Long Island Residential Charger Rebate

$100–$400

$100 base rebate for a qualified Level 2 home charger (EPRI Vetted Product List), plus $300 more for Disadvantaged Community / Household Assistance Program households. Budget-limited, expected to run through Dec 31, 2026 or until funds run out.

Source: /us/ny/pseg/oyster-bay/ev-charger/ · PSEG Long Island
Smart thermostat

PSEG Long Island smart thermostat program

Program likely exists, amount unverified

The catalog page was referenced but its content wasn't independently confirmed — flagged as unverified until checked directly on psegliny.com.

Source: /us/ny/pseg/oyster-bay/smart-thermostats/ · PSEG Long Island
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What you'll actually save each month

Rebates cover the upfront cost, but the number that decides whether this is worth it is the payback period — how long until the monthly savings pay back what you spent out of pocket. Here's the real math using PSEG Long Island's actual current electricity rate:

A modern cold-climate heat pump typically moves 2.5–3.5 units of heat per unit of electricity it uses (its "coefficient of performance"), which is why it beats electric resistance heating on cost even at the same per-kWh rate. PSEG Long Island is electric-only in most of its territory; Long Island gas customers are typically National Grid, a separate bill. We didn't find a reliable current per-therm gas rate for PSEG Long Island territory to compare against — rather than guess, we're leaving gas-furnace payback math out until we can source it properly.

Get your real payback number: Plug in your current heating bill and system type in our free assessment tool for an estimate — not a generic average.

Local Installers in Oyster Bay

Real, currently-reviewed installers serving Oyster Bay, pulled from Google reviews. We're not paid to list anyone here.

Home+ Air and Heat
★ 5.0 (87 reviews) · Heat Pump
August Tech Heating & Cooling
★ 5.0 (11 reviews) · Heat Pump
HarmonAire Ductless Heat Pumps
★ 4.9 (216 reviews) · Heat Pump
Gold Star Plumbing, Heating, & Cooling
★ 4.7 (718 reviews) · Heat Pump
L&L Electrical Inc
★ 5.0 (43 reviews) · Solar
NY State Solar
★ 4.8 (1126 reviews) · Solar
Momentum Solar New York
★ 4.4 (768 reviews) · Solar

See all Oyster Bay installers →

Nearby cities we cover

Oyster Bay is on Long Island in PSEG territory, alongside these nearby cities this guide covers.

BabylonBrookhavenSmithtownIslipHuntington

Compare top-rated installers in Oyster Bay

Free for homeowners. We rank local companies by their Google reviews, weighted so many good reviews beat a handful. How we rank.

Top-rated heat pump installers in Oyster Bay →7 local companies ranked by 582 Google reviews. Top picks: Home+ Air and Heat, HarmonAire Ductless Heat Pumps, L. Graziose Plumbing Heating & Cooling.Top-rated solar installers in Oyster Bay →6 local companies ranked by 2,007 Google reviews. Top picks: L&L Electrical Inc, NY State Solar, Broadway Energy International Inc. (Energy & Commodity Company).Top-rated home battery installers in Oyster Bay →4 local companies ranked by 1,943 Google reviews. Top picks: NY State Solar, Tesla Energy - Long Island, NY, Sunshine Solar Technologies, Inc..

Statewide answer: see New York home battery rebates and incentives, with what is open, what has closed and the dates to watch.

See your rebates and top installers