Heat pump incentives for NYC businesses & multifamily buildings
Con Edison's programs carry separate electrification incentives for replacing fossil-fuel heating and hot water with heat pumps — for small businesses and for multifamily buildings.
We size the system with your mechanical subcontractor, confirm the decommissioning requirements, and file the electrification application alongside any efficiency measures in the same project.
What's typically included
Cold-climate air-source heat pumps
Ductless and ducted ccASHP systems for storefronts, offices and apartments.
VRF systems
Variable refrigerant flow for larger commercial spaces and multifamily buildings.
Heat pump water heaters
Domestic hot water electrification for businesses and central DHW plants.
Whole-building electrification
Full-load space heating electrification projects, handled as custom applications.
What Con Edison's program rules say
For small businesses, heat pump incentives require decommissioning the existing fossil-fuel heating system, and per-project amounts scale with conditioned floor area.
Small Business custom electrification incentives (full-building heating and hot water) are limited to 50% of project cost or $400,000, whichever is lower.
Multifamily electrification projects fall under the same per-project caps: 85% of cost for affordable (AMEEP) and 70% for market-rate buildings.
Source: Con Edison — Affordable multifamily buildings (AMEEP)
Program rules as published for 2026; Con Edison can change incentives and terms. We confirm current terms before every proposal.
Who it's a good fit for
- Storefronts and offices heating with oil or gas
- Multifamily buildings planning boiler replacement
- Owners facing Local Law 97 limits in NYC
- Businesses adding cooling and wanting to electrify heat at the same time
Heat Pump Incentives by area
- ManhattanHarlem, Washington Heights, Inwood…
- BrooklynSunset Park, Bushwick, Bed-Stuy…
- QueensFlushing, Jackson Heights, Astoria…
- The BronxMott Haven, Hunts Point, Fordham…
- Staten IslandSt. George, Stapleton, Port Richmond…
- Westchester CountyYonkers, Mount Vernon, New Rochelle…
- Jamaica, Queenspossible bonus areaJamaica, South Jamaica, Jamaica Estates…
Check your eligibility
Frequently asked questions
Do I have to remove my boiler or furnace to get heat pump incentives?
For Con Edison's Small Business heat pump incentives, yes — the existing fossil-fuel heating system must be decommissioned. Multifamily programs have their own rules for full-load heat pumps; we walk you through them for your building.
Are heat pumps a good fit for older NYC buildings?
Often, yes. Cold-climate air-source heat pumps heat effectively in New York winters, and ductless systems avoid opening walls. The walkthrough tells us whether your electrical service can carry the load.
Can I get heat pump and efficiency incentives in one project?
Yes. Electrification incentives can be filed alongside other efficiency measures; the rules for each measure still apply.
Do heat pump installers need special certification?
Refrigerant handling requires EPA 608 certification, and Con Edison's multifamily program asks contractors doing heat pump work to complete manufacturer sizing and design training. Our installers meet those requirements.
Questions about heat pump incentives?
Call and talk to Clean Ridge directly — we'll tell you what your building may qualify for.