Heat Pumps

Two powerful technologies — smarter water heating and ductless whole-home comfort — often available at little or no cost

Apply for Free Heat Pump Upgrades

What Is a Heat Pump?

A heat pump doesn't generate heat — it moves heat from one place to another. In winter it pulls heat from outdoor air or a room and transfers it where you need it. In summer the process can reverse to provide cooling. Because it's moving heat rather than creating it, it requires far less energy than traditional combustion or resistance heating.

Heat pump technology comes in two main forms for residential use. A heat pump water heater (HPWH) pulls warmth from the surrounding room air to heat your domestic hot water — the same water you use for showers, sinks, and dishes. An air source heat pump (ASHP), typically installed as a ductless mini-split, heats and cools the living spaces of your home without the need for ductwork.

Both technologies are eligible for significant rebate programs — and for qualifying households, a heat pump water heater can be installed at zero cost through the NYSERDA EmPower+ program.

Heat Pump Highlights

2–4x
more efficient than conventional electric heating
$0
cost for heat pump water heater — EmPower+ eligible households
$10,000+
in combined rebates available for qualifying households

What Is a Heat Pump Water Heater?

A heat pump water heater (HPWH) is a highly efficient alternative to traditional electric or gas water heaters. Instead of generating heat directly — which wastes a lot of energy — it moves heat from the surrounding air into the water tank, using far less electricity in the process.

Think of it like a refrigerator in reverse: a refrigerator moves heat out of a cold space, while a heat pump water heater moves heat into the water. This makes it 2 to 4 times more efficient than a conventional electric water heater.

For most households, water heating is the second largest energy expense after heating and cooling. In New York, it's one of the most commonly funded upgrades through the EmPower+ program — and for eligible households it's installed at zero cost.

The unit looks just like a standard water heater and works the same way — you won't notice any difference in your daily use, only on your energy bill.

Heat Pump Water Heater Facts

2–4x
more efficient than conventional electric water heaters
$300–600
average annual savings on electric bills
$0
out of pocket for EmPower+ eligible households
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How It Works

The unit pulls warm air from the surrounding room, compresses it to increase its temperature, and transfers that heat into your water tank. It uses the same amount of electricity as a regular water heater, but heats 2–4x as much water with it.

Heat Pump vs. Standard Water Heater

Feature Standard Electric Heat Pump
Efficiency Rating (COP) ~1.0 3.0 – 4.0
Annual Operating Cost ~$580/yr ~$150/yr
Annual Savings — $300–$600/yr
Lifespan 8–12 years 13–15 years
Available Rebates None Up to $5,000+
Environmental Impact High emissions Up to 75% lower

Benefits of Upgrading

💰

Dramatic Energy Savings

Most households save $300–$600 per year. Over a 10-year lifespan, that's $3,000–$6,000 back in your pocket — before accounting for rising utility rates.

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Lower Carbon Footprint

Heat pump water heaters produce up to 75% fewer carbon emissions than conventional electric models — a meaningful step toward a greener home.

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Long-Term Reliability

Modern heat pump water heaters last 13–15 years — longer than conventional models — with lower maintenance requirements over their lifespan.

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No Disruption to Daily Life

The installation is completed in a few hours, and the unit operates the same as your existing water heater. Hot water is available right away.

❄️

Built-In Dehumidification

As a bonus, heat pump water heaters pull warm humid air from the room and release cool, slightly dehumidified air — a nice benefit in warm months.

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Increases Home Value

Energy-efficient appliances are increasingly valued by homebuyers. Upgrading your water heater is a straightforward improvement with measurable ROI.

Available Rebates & Incentives

Stack multiple programs to get your upgrade at little or no cost

🏠 NYSERDA EmPower+

$0

Income-eligible households get a heat pump water heater installed at zero cost — valued at $2,100–$5,000. Qualify via SNAP, HEAP, TANF, SSI, or income limits.

See if you qualify →

⚡ Utility Rebates

$300+

Con Edison, National Grid, NYSEG, and other NY utilities offer their own rebates for heat pump water heater upgrades — often stackable with state and federal programs.

Ask us about your utility →

🏛️ HEAR Program (IRA)

$1,750

The Home Electrification Appliance Rebate (HEAR) program offers up to $1,750 specifically for heat pump water heaters for income-eligible households.

See HEAR details →

Frequently Asked Questions

Does my home need to meet any requirements for a heat pump water heater?

Heat pump water heaters work best in spaces with at least 700–1,000 cubic feet of surrounding air (roughly a 10x10x7 room) — typically a basement, utility room, or garage. They don't work well in very tight, unventilated closets. During your free assessment, we'll confirm whether your space is suitable.

Will a heat pump water heater work in a cold basement in winter?

Yes. Modern heat pump water heaters are designed to operate efficiently in temperatures as low as 37°F, and most have a backup electric resistance mode for extreme cold. Since most units are installed indoors in basements or utility rooms, ambient temperature is rarely an issue.

How long does installation take?

A heat pump water heater installation is typically completed in 2–4 hours. A mini-split ASHP installation usually takes one full day. Either way, your home is fully functional the same day — no overnight work or major disruption.

I have a gas water heater — can I switch to a heat pump model?

Yes, but switching from gas to electric requires an electrical circuit upgrade in most cases. We include an electrical service assessment as part of our evaluation. In many cases this is also covered under EmPower+ if you qualify — including the panel and wiring upgrade needed.

Will an air source heat pump work in a New York winter?

Yes. Modern cold-climate mini-splits are rated to operate at full capacity down to about 5°F, and continue functioning (with some reduction in output) down to -13°F. They're designed specifically for climates like New York's and perform reliably through the winter season.

Can I install a mini-split if I already have ductwork?

Absolutely. Ductless mini-splits work in any home regardless of whether ductwork exists — they simply don't need it. If you have existing ducts and prefer a ducted system, we can also evaluate a ducted air source heat pump to replace your furnace and central AC together.

EmPower+ can cover your heat pump at $0 cost. Apply now to find out if you qualify.

Apply Now

Find Out Which Heat Pump Is Right for You

Whether you need smarter water heating or ductless whole-home comfort — or apply directly for EmPower+ online.

Schedule a Free Assessment Apply for EmPower+ →