What water heater rebates pay in New York City
We read the NYS Clean Heat program manual (version 3) and NYSERDA's EmPower+ page on October 3, 2026. Con Edison is the Clean Heat utility for all five boroughs.
Con Edison limited-time offer
For applications submitted September 1 to November 30, 2026.
Con Edison standard rebate
ENERGY STAR heat pump water heater with a UEF rating, through retail or installer channels.
EmPower+ Sustainable Futures
For income-eligible households, on top of the regular EmPower+ downstate caps.
Federal 25C credit
Not for equipment placed in service after December 31, 2025.
Upstate pays less
The same Clean Heat rebate is $1,250 in Central Hudson, National Grid, NYSEG, O&R and RG&E areas. Con Edison's $1,300, and $1,500 this fall, is the highest in the program. Long Island is not part of Clean Heat at all.
Who in New York City can use this
A heat pump water heater replaces a tank in your own unit or house. The US Census Bureau's American Community Survey (2020 to 2024) counts about 3.68 million homes in New York City. 9% are single detached houses and 21% are in buildings of 2 to 4 units. Those are the homes most likely to have their own water heater in a basement or utility room. If your building has one central hot water system, any upgrade is the building owner's call.
About one in three households owns. If you rent a unit with its own tank, the rebate goes to whoever buys and installs it, so talk to your landlord.
Where the unit goes
A heat pump water heater pulls heat from the air around it, so it needs enough room or venting and cools the space a little. In a city row house or two-family home, the basement is usually the right spot. A tight closet often is not. Check the maker's space and temperature rules before you buy.
79% of the city's homes were built before 1980, per the same Census survey. Many units need a 240-volt circuit, so ask the installer to look at your panel. EmPower+ can help income-eligible homes with panel and wiring upgrades.
Gas homes
64% of New York City homes heat with piped gas, per the Census survey. If your water heater also runs on gas, swapping it for a heat pump unit moves that load to electricity. Ask your installer to estimate the change in both bills, using your actual Con Edison rates, before you decide.
Do it yourself or hire out
The Clean Heat manual allows a homeowner to apply directly and install their own unit, as long as codes are followed. If you hire someone, the installer must be licensed in New York. Most people hire a licensed plumber.
How to claim in New York City
- Pick an ENERGY STAR heat pump water heater with a UEF rating.
- Buy through a store or installer taking part in Clean Heat, so the discount comes off at purchase, or apply to Con Edison yourself after install.
- Submit by November 30, 2026 to get $1,500 instead of $1,300.
- If your income may qualify, apply to EmPower+ first. It can cover far more.
Common questions
How much is the Con Edison heat pump water heater rebate?
$1,300 through NYS Clean Heat, raised to $1,500 for applications submitted September 1 to November 30, 2026.
Can I install it myself and still get the rebate?
Yes. The Clean Heat manual says a homeowner can apply directly and install their own unit if codes are followed.
Does a gas tankless heater qualify?
No. The rebate is for ENERGY STAR electric heat pump water heaters.
Can low-income New Yorkers get more?
Yes. EmPower+ lists up to $5,000 for a heat pump water heater through Sustainable Futures funding for income-eligible households.
Is there a federal tax credit?
No. The IRS says the 25C credit does not apply after December 31, 2025.
What to do next
If your tank is getting old, get a quote before November 30. For heating rebates, see our New York City heat pump guide and the New York City rebate hub.
By Sam Menard. Sources, last read October 3, 2026: NYS Clean Heat Program Manual, NYSERDA: EmPower+, IRS: Energy Efficient Home Improvement Credit, US Census Bureau ACS table B25024. All New York City rebates → Every Con Edison rebate →