Now eligible for the Clean Heat rebate: air-to-water heat pumps

We’re excited about air-to-water heat pumps becoming eligible for the NYS Clean Heat rebate – and you should be, too!

First, you may already be familiar with this rebate, but to recap: The NYS Clean Heat Program is part of a statewide investment and coordinated effort delivered by The New York State Energy Research and Development Authority (NYSERDA), utilities, and a network of contractors, to incentivize the adoption of heat pumps in buildings. NYS Clean Heat offers a significant rebate for the installation of eligible, energy-efficient heat pump equipment and, prior to 2024, only applied to geothermal, air-to-air, and heat pump water heaters. Added in March 2024, air-to-water heat pump technology is the newest addition to that list.

To be eligible for the program, your heat pump system must be installed by a NYS Clean Heat qualified contractor (woah, that’s us).

How your rebate is determined:

The rebate is based on the heating capacity of the equipment installed at 5°F, allocating $800 per 10000 Btu/hr of system output. For every project that includes eligible equipment, we calculate the rebate amount prior to installation and include it in the project proposal. The value of the rebate typically ranges from $1,500-$5400 (the larger the system, the larger the rebate), which is distributed as a lump sum payment from your local utility company and deducted directly from the overall cost of the project. This makes the process easy and stress-free – and unlike with tax credit incentives, you don’t need to wait to get your money back!

How to apply:

The only action our customers are required to complete to apply for the Clean Heat rebate is submitting a signed customer acknowledgment form from their utility service provider. We’ll provide the form pre-filled with the relevant installation details and allow the customer to enter their personal information and signature.

Here’s why we love air-to-water.

Air-to-water technology is highly versatile and efficient, which is why for years our company has been recommending air-to-water as a solution for home and business owners who are interested in or have existing hydronic distribution heating and cooling systems.

Air-to-water heat pumps can achieve similar results as geothermal at significantly less cost (for one, they don’t require a massive trench to be dug in your backyard). Air-to-water heat pumps are also one of the only ways to efficiently heat water carbon-free in the quantities needed to heat or cool a space. They enable customers to heat or cool a space using radiative heat transfer, which is widely regarded as being optimal for comfort.

The benefits don’t stop there:

They’re an all-in-one solution. A “monobloc” air-to-water heat pump can be configured to take care of 100% of domestic hot water in addition to heating and cooling.

They’re extremely efficient. Air-to-water heat pumps are around 30% more efficient than traditional air-source heat pumps, and modern air-to-water heat pumps with inverter technology can modulate their heating output. This means that they only produce as much heat as your space currently needs, which reduces the amount of electricity consumed by the heat pump and lowers your energy costs. They also use up to 70% less electricity than electric baseboard heating.

They’re effective at low temperatures. For example, a Spacepak Monobloc air-to-water system is capable of high performance heating operation in outdoor temperatures as low as -22°F and can deliver reliable water temperatures as high as 130°F.

They have flexible applications. Hydronic systems can utilize a diverse set of distribution options. A single system can heat a radiant floor and provide cooling via wall-mounted air-handlers or centralized duct-work. Also, if you’re interested in an energy self-sufficient home, pairing them with solar energy makes them an affordable approach to net-zero energy builds.

Whether you’re looking to renovate your current home heating and cooling system or planning a new build, you should consider an air-to-water heat pump as a solution. This innovative technology has proven itself several times over and is now more affordable than ever!

How does an air-to-water heat pump work?

Like all air source heat pumps, air-to-water systems only need electricity to produce heat and do not require any fuel, such as gas, oil or wood (making them climate-friendly). A standard air source heat pump takes heat from outside air using a refrigerant. Air-to-water heat pumps use this same process, then exchange the heat to a fluid – typically water or a mix of water and glycol – and transport this fluid into a home to provide space heating through hydronic distribution (e.g., radiant floor, radiators, or baseboard water circulation systems). These systems can also be used in a cooling mode, creating chilled fluid and running it through an air coil to distribute air conditioning.

What equipment qualifies for the rebate?

To be eligible for incentives in the NYS Clean Heat Program, air-to-water heat pumps must meet all the following standards:

  • Must be an air source heat pump

  • Has refrigerant to water or water/glycol heat exchange

  • Can feed into building space heating hydronic distribution system

  • Meets the following performance criteria: COP of 1.7 or greater at A5W110 (Ambient air 5°F, Leaving Water Temperature 110°F) o Nominal Cooling Capacity ≤ 72,000 btu/h

Interested in an air-to-water install? Fill out our contact form to get the conversation started!

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An interview with our first customer