Mini Split Rebates in NYC: Every Program Available in 2026

Mini splits – also called ductless heat pumps – are the single most popular upgrade happening in New York City homes right now. They heat and cool in the same unit, they are quieter than window ACs, they work in cold weather, and they cut energy bills compared to electric baseboard heat or old oil systems.

The bigger news is the money available. NYC homeowners can access thousands of dollars in rebates through a combination of Con Edison’s Clean Heat program, NYSERDA’s EmPower+ and Clean Heat programs, and state financing. But the rebate landscape shifted considerably at the start of 2026, and a lot of the information circulating online is out of date.

This post covers what is actually available right now – with real numbers, the key rule changes you need to know before you talk to a contractor, and how to stack programs to bring your installation cost down as far as possible.

The Biggest Change in 2026: Federal Tax Credits Are Gone

Important 2026 Update: The Section 25C Energy Efficient Home Improvement Credit – which provided up to $2,000 for qualifying heat pump installations – expired on December 31, 2025 under the One Big Beautiful Bill Act (OBBBA). Heat pumps installed in 2026 are not eligible for a federal tax credit. State and utility programs are now the primary source of savings.

This is a meaningful shift. A homeowner who installed a qualifying mini split in 2024 could stack a $2,000 federal credit on top of their Con Edison and NYSERDA rebates. That option does not exist anymore for 2026 installs.

The one exception is geothermal heat pumps, which remain eligible for a 30% federal tax credit under Section 25D through 2032. But for the ductless mini splits that most NYC homeowners are installing, the federal piece is gone. What remains is still significant – but you need to know where to look.

What Is a Mini Split Heat Pump and Why Is NYC Pushing Them?

A mini split (short for ductless mini-split heat pump) consists of an outdoor compressor unit and one or more indoor air handlers mounted on the wall. There are no ducts. Each indoor unit covers a zone and can be controlled independently.

They are particularly well-suited to NYC for a few reasons:

• Most NYC homes and apartments were not built with ductwork, making ducted central systems expensive or impractical to install
• Mini splits provide both heating and cooling from a single system – removing the need for window ACs and separate heating
• Cold-climate mini splits operate efficiently even when outdoor temperatures drop well below freezing
• NYC electricity costs run 54% above the national average, and mini splits use significantly less energy than electric baseboard heat or standard window units
• Nearly 40% of NYC’s greenhouse gas emissions come from buildings – specifically heating and hot water – which is why both Con Edison and NYSERDA are actively incentivising the switch

A single-zone mini split installation typically costs between $3,000 and $7,000 installed. A whole-home multi-zone system can run $10,000 to $20,000 or more. That is where rebates make a real difference.

Mini Split Rebates Available in NYC in 2026 – Quick Reference

Here is a summary of every active program a NYC homeowner can access in 2026:

Program	Who It Is For	Rebate Amount	Key Requirement
Con Edison Clean Heat (NYS Clean Heat)	Con Edison customers replacing fossil fuel heating	$2,000 – $12,000 (whole-home installs up to $12K)	Cold-climate ASHP, pre-inspection required, participating contractor
NYSERDA EmPower+ (Tier 1)	Low-income households (at or below 60% SMI/AMI)	Up to 100% of project cost (cap ~$14,000+)	Income verification or auto-qualify via HEAP/SNAP/SSI
NYSERDA EmPower+ (Tier 2)	Moderate-income households (60-80% SMI/AMI)	Up to 50% of project cost (cap ~$5,000)	Income documentation required
NYSERDA Clean Heat (non-income)	All income levels, whole-home heat pump installs	$1,000 – $3,000 additional on top of utility rebate	Full load heat pump replacing existing fossil fuel system
NYSERDA Financing (GJGNY)	Any income level (rate varies by income)	$1,500 – $25,000 at 3.49% – 7.49% interest	Covers project cost gap after rebates
Federal 25C Tax Credit	N/A – expired	EXPIRED Dec 31, 2025 – no longer available	Credit ended under One Big Beautiful Bill Act (OBBBA)

Sources: Con Edison Clean Heat program, NYSERDA EmPower+, Meltek 2026 Con Edison rebate guide, Rewiring America, Nuwatt Energy analysis. Always confirm current amounts with a participating contractor before scheduling.

Con Edison Clean Heat Program – The Main Rebate for NYC

The Con Edison Clean Heat program – run in partnership with NYSERDA under the NYS Clean Heat umbrella – is the primary rebate available to NYC homeowners installing mini splits. If you are a Con Edison electric customer, this is your first port of call.

How Much Can You Get?

For residential installations in 2026, the rebate depends on the size and scope of the project:

• Single-zone or partial-home installs: $2,000 to $4,500 depending on system size and whether you are replacing a fossil fuel system
• Whole-home heat pump installs: up to $12,000 in combined rebates – this is the ceiling for a full multi-zone system replacing oil or gas heat throughout the home
• Additional $4,000 bonus: available if you fully remove or disable your existing fossil fuel heating system rather than keeping it as backup

The rebate is deducted directly from your installation invoice by the participating contractor. You do not wait for a cheque or file paperwork yourself – the contractor handles the application and pre-inspection process with Con Edison.

Key Rules to Know Before You Start

• Pre-inspection required: Con Edison must inspect your property before any work begins to verify your existing heating system. Work started without a pre-inspection does not qualify.
• Cold-climate systems only: The system must be a heat pump providing both heating and cooling. Cooling-only units do not qualify. Most modern mini splits are heat pumps by default, but confirm with your installer.
• Participating contractor required: You must use a contractor enrolled in the Con Edison Clean Heat program. They handle the application, both inspections, and the rebate paperwork.
• Con Edison customer: You must be a Con Edison electric customer. If you heat with gas, you can still qualify if you are also a Con Edison electric customer and you are switching away from gas.

Note: Full load heat pump projects replacing an existing full load heat pump system are not eligible for Clean Heat incentives starting in 2026, per NYSEG and program updates. This rule was introduced across utility programs from January 1, 2026.

NYSERDA EmPower+ – Best Option for Income-Eligible Households

If your household income qualifies, NYSERDA’s EmPower+ program can cover a far larger share of your project cost than utility rebates alone. The program was already covered in detail in our guide to NYSERDA EmPower+ income guidelines for 2026, but here is the short version as it relates to mini splits specifically.

What EmPower+ Covers for Heat Pump Installs

• Low-income tier (at or below 60% SMI or AMI, whichever is greater): up to 100% of eligible project costs. The base funding cap for a single-family home is $10,000, with additional HEAR funding pushing total potential support to $14,000 or more
• Moderate-income tier (60% to 80% SMI/AMI): up to 50% of eligible project costs, with a base cap of $5,000 for a single-family home

EmPower+ covers heat pump installations – including ductless mini splits – as part of a whole-home energy improvement plan. A certified contractor conducts a free home energy assessment first, then recommends upgrades. The heat pump installation is often recommended alongside insulation and air sealing, which together maximise both comfort and savings.

For two- to four-family rental buildings, if at least 50% of units are income-eligible, the whole building qualifies – meaning landlords and multi-unit owners can access these rebates too.

NYSERDA Clean Heat Rebates – Available at All Income Levels

Separate from EmPower+, NYSERDA runs the Clean Heat rebate program for households that do not meet the income thresholds for EmPower+ or who are choosing a whole-home heat pump conversion without going through the EmPower+ assessment route.

For Con Edison customers specifically, this typically provides an additional $1,000 to $3,000 on top of the Con Edison utility rebate for whole-home heat pump installs. The two programs are designed to stack.

Eligibility for Clean Heat rebates does not require income verification. The main conditions are that the system must qualify as a cold-climate air-source heat pump and the project must be submitted by a participating NYSERDA contractor.

How to Stack Rebates for Maximum Savings

The right approach – particularly for households replacing oil or gas heat with a mini split system – is to stack every program available. Here is how the numbers can add up on a qualifying whole-home install:

Program	Potential Amount
Con Edison Clean Heat rebate (whole-home)	Up to $12,000
NYSERDA Clean Heat (on top of Con Ed, whole-home)	$1,000 – $3,000
NYSERDA EmPower+ (income-eligible households only)	Up to $14,000+
NYSERDA GJGNY low-interest financing (for remaining balance)	From 3.49% (lower-income)
Federal 25C tax credit (EXPIRED – not available in 2026)	$0 in 2026

Note: Programs cannot always be combined on the same expense dollar. A participating contractor will identify which combination maximises your specific project. Always confirm current amounts before signing a contract.

Meltek’s 2026 Con Edison rebate guide puts the total combined potential at $5,000 to $9,500 on a standard qualifying installation. For income-eligible households doing a whole-home switch, the total support including EmPower+ can exceed $20,000 depending on project scope.

Who Qualifies for Con Edison Clean Heat Rebates?

Most Con Edison electric customers replacing oil, propane, or electric resistance heating with a cold-climate heat pump will qualify for at least the base rebate. The specific conditions:

• You must be a Con Edison electric customer
• The property must be residential (1 to 4 units for most rebates)
• The system must be a cold-climate air-source heat pump – not a cooling-only system
• Installation must be by a participating contractor enrolled in the program
• A pre-inspection from Con Edison must happen before work starts
• Full load heat pump projects replacing an existing heat pump system are not eligible (2026 rule change)

For the income-based EmPower+ route, eligibility is determined by household income relative to the State or Area Median Income – with the 2026 expansion now using whichever is higher for your county. Both homeowners and renters qualify, and auto-qualification is available for households receiving HEAP, SNAP, TANF, or SSI.

How the Application Process Actually Works

The Con Edison Clean Heat process is more structured than a standard rebate programme. Here is what to expect:

• Find a participating contractor: Search NYSERDA’s contractor directory or call a Con Edison-approved installer. This is step one – do not book an independent HVAC contractor who is not enrolled in the programme.
• Get a quote with the rebate shown: Any enrolled contractor should present your net cost after rebates upfront. You should see the rebate amount itemised in the proposal.
• Pre-inspection: Con Edison or the contractor schedules a pre-installation inspection to document your existing heating system. This must happen before any work begins.
• Preliminary Incentive Offer Letter: Con Edison issues a letter confirming the rebate amount and a Notice to Proceed. Only sign off and schedule work once you have this.
• Installation: The contractor installs the system.
• Post-inspection: Con Edison verifies the completed work matches the approved scope.
• Rebate deducted: The rebate comes off your invoice directly. You pay the net amount. No rebate cheque to chase.

If you are going through the EmPower+ route simultaneously, the free home energy assessment is the starting point. A NYSERDA-certified contractor conducts a full audit, recommends improvements, and submits the project for approval before any work begins.

Why Pairing Your Mini Split with Weatherisation Gets the Best Results

This is the part most homeowners skip – and it ends up costing them on the energy bills.

A mini split installed in a leaky, poorly insulated home has to work a lot harder to maintain temperature. You get the equipment, but you do not get the full energy savings you were expecting. The system runs longer, bills stay higher than they should, and the rebate investment does not pay back as quickly.

The combination of air sealing and insulation done before or alongside the mini split install changes the equation. Together, they can reduce heating and cooling loss by 30-50%. That means a smaller system, lower running costs, and a home that hits the temperature setpoint faster and holds it longer.

This is also where the EmPower+ programme makes the most financial sense for income-eligible households – it is designed to fund all of these improvements together rather than treating them as separate decisions. If you get the home energy assessment, a certified contractor will walk you through the recommended sequence and identify what the programme will cover for your specific property.

The NY Weatherization Assistance Program (WAP), available through nyweatherizationprogram.com, has delivered insulation installation, air sealing, and indoor air quality improvements to over 744,000 New York households since 1977. For income-eligible NYC households considering a mini split installation, pairing the two programmes – WAP weatherisation plus Con Edison Clean Heat mini split rebates – is the most comprehensive approach available.

Bottom Line: The Money Is There, But the Rules Changed in 2026

Mini split installations in NYC are still heavily incentivised in 2026, but the incentive landscape looks different than it did in 2025. The federal tax credit is gone. What remains is state and utility-funded – and for the right household, it is still enough to bring a whole-home installation close to zero out of pocket.

The key points:

• Con Edison Clean Heat rebates go up to $12,000 for whole-home installs – and the rebate is deducted from your invoice, not claimed later
• NYSERDA EmPower+ covers up to 100% of costs for low-income households, and the income thresholds are higher in 2026 thanks to the AMI-based expansion
• Federal 25C tax credits expired December 31, 2025 – there is no federal credit available for 2026 heat pump installs
• Stacking Con Edison + NYSERDA rebates + financing for any remaining balance is the way to maximise total savings
• Pairing a mini split with insulation and air sealing gives you better performance and often unlocks additional EmPower+ funding

The starting point is a free home energy assessment from a NYSERDA-approved contractor. It costs you nothing, it identifies what your home qualifies for, and it gives you a clear picture of the net cost before you commit to anything. Visit nyweatherizationprogram.com or call 929-232-1130 to book yours.

Sources

• Con Edison Clean Heat Program / NYS Clean Heat – cleanheat.ny.gov and Vinco Mechanical contractor reference 2026
• Meltek – Con Edison Rebate Programs 2026: Every Incentive Available to NY Customers (published March 2026)
• Rewiring America / Elephant Energy – 25C credit expired December 31, 2025 (confirmed February 2026)
• Nuwatt Energy / VivaVolt – Heat Pump Tax Credits and Rebates in 2026 (February 2026)
• NYSERDA EmPower+ program – nyserda.ny.gov (2026 income guidelines, AMI expansion)
• NYSEG NYS Clean Heat Rebate Program (January 2026 residential rule changes)
• AC Direct / Sealed – New York State energy rebates and heat pump incentive overview