There are a variety of ways to reduce the out-of-pocket contribution and finance the cash required. Below we explain the available New York air source incentives and financing options, and apply each to a real-life example:
Example: Ductless Multi-Zone
For our example we will be using the Mitsubishi 4-Ton multi-zone HyperHeat pump with three ductless wall cassettes. This system can provide full heating and AC for most 2,000 sq.ft houses, without the use of fossil fuels. The multiple wall cassettes allow for independent temperature control for different areas of the house, without the hassle of installing ductwork.
Total System Cost: $30,600
Below we will show how the current discounts and credits will greatly reduce this cost.
Unprecedented rebates and tax credits are available to substantially offset the cost to electrify your home, creating a healthy and comfortable space while also making a solid financial investment. The incentives available for Air Source Heat Pumps in New York are as follows:
1
Air Source Utility Rebate (Dependent on system size and type)
As good as cash directly off the project cost.
2
Federal Tax Credit (30% up to $2,000)
Direct bottom-line deduction from your federal tax bill.
Example: Credits & Incentives
Here is how the air source incentives and tax credits play out using the example project above:
System Cost
$30,600
Utility Rebate (4-ton Mitsubishi w/ HYPER HEAT) Cash incentive goes directly to system builder upon completion
-$5,640
Contract Cost
$24,960
30% Federal Tax Credit ($2,000 max) Deduction from federal tax bill for year paid
Air source heat pumps tend to have a higher upfront cost than conventional heating systems, but that does not mean they have to put a strain on your finances. Specialty loans are provided for those who are trying to go green without breaking the bank. These are the current financing options available:
1
NYSERDA Smart Energy Loan (Currently 3.49% or 6.99%)
15 year loan that can cover up to $25,000 of total system cost. Two loan rates offered depending on location and income. Check if you qualify based on your address or income.
2
Credit Human Air Source System Loans (8.49%)
10, 15 or 20 year loans that can cover entire contract cost (up to $100,000). Once received, tax credits can be used to re amortize loan at no cost for lower monthly payments, or kept for other use.
Example: Financing Options
Here’s how these options break down using the example above:
Air source heat pumps are incredibly versatile systems that can be tailored to fit the needs of any home. As a result, the price of installation is equally flexible. Here are some other possible systems:
Example: Ductless Single-Zone
1.5 Ton Mitsubishi HyperHeat Heat Pump
1 Ductless Wall Cassette
Provides heating and cooling for one space without the need for ductwork.
A cost effective solution for conditioning additions, garages, workshops, or other spaces that are difficult to connect to your home’s main heating system.
Total System Cost: $11,750
Here is how the air source incentives and tax credits play out using the example project above:
System Cost
$11,750
Utility Rebate (1.5-ton Mitsubishi w/ HYPER HEAT) Cash incentive goes directly to system builder upon completion
-$2,760
Contract Cost
$8,990
30% Federal Tax Credit ($2,000 max) Deduction from federal tax bill for year paid
-$2,000
Effective Total Cost
$6,990
Example: Ducted Single-Zone
3.5 Ton Mitsubishi HyperHeat Heat Pump
1 Air Handler
Connects to existing ductwork to provide complete heating and AC for houses up to 2,000 sq.ft.
A perfect replacement for a traditional furnace. Get rid of fossil fuels without having to make any changes to your current distribution.
Total System Cost: $20,100
Here is how the air source incentives and tax credits play out using the example project above:
System Cost
$22,100
Utility Rebate (4-ton Mitsubishi w/ HYPER HEAT) Cash incentive goes directly to system builder upon completion
-$5,760
Contract Cost
$16,340
30% Federal Tax Credit ($2,000 max) Deduction from federal tax bill for year paid
