Rebates & Incentives

Upcoming Rebates & Incentives

The recently adopted Federal Inflation Reduction Act (IRA) allows American households to save thousands of dollars on upfront costs of energy-efficient electric equipment and to take advantage of clean energy and electric vehicle tax credits. Most homeowners and renters are eligible for upfront discounts and tax credits based on their annual income.

For example, a 2-person household with annual income of $90,000, living in their home in East Hampton could be eligible for as much as $20,000 in total incentives. How much money could you get with the Inflation Reduction Act? Click here to find out with Rewiring America’s Savings Calculator.

Most of these IRA incentives won’t become available until 2023. Learn more with this IRA Guide.


Below you can find currently (2022) available incentives.

Overview Table of Current Rebates & Incentives

Technology/ApplianceRebates & IncentivesSource and more info
Energy Assessment & RetrofitFree Audit & Low Cost FinancingPSEGLI, NYSERDA, EnergizeEH
Heat Pumps for Water Heating$1,000PSEGLI
Air Source Heat Pumps (cold climate units)$350 to $5,500 per 12000 BTUPSEGLI
Ground Source Heat Pumpsup to $6,000 + 30% Tax CreditPSEGLI & IRS
Clothes Dryer Heat Pump$300PSEGLI
Clothes Dryer Energy Star$50PSEGLI
Washer EnergyStar Most Efficient$50PSEGLI
Smart Thermostat (w central AC)$70 – $100 per thermostatPSEGLI
EV Charger (Level 2)$400 SmartCharge RebatePSEGLI
Electric Vehicle Purchase Up to $2,000 NYS + $7,500 IRSNYS rebate & IRS tax credits
Solar Electric30% Federal + up to $5,000 NYSIRS & NYS Income Tax Credits
Solar w/ Energy Storage30% Federal + $250/kWh NYSIRS & NYSERDA / PSEGLI
Rebates & Incentives as of October 2022

Carefully check above weblinks for important details and additional rebates and tax incentives. Eligible equipment must be purchased from AND installed by participating Home Comfort Partners. Consult with your tax accountant for tax credit eligibility.

Rebates, Tax Incentives, Financing

Investments in energy efficiency or renewable energy like solar panels often pay for themselves by saving more money on utility bills over the years, but the upfront investment can present a challenge.

One simple way to justify the upfront investment for a solar roof is to think of it as paying your electric bill for the next 25 or more years upfront, and not having to worry about high electric bills anymore.

Another way is to think about it is that paying your monthly utility bill is like paying rent. When you purchase a solar array you are investing in your home instead of sending money to the utility company.

Financial incentives and financing can help overcome the hurdle of making an investment.

There are a variety of incentives available, including utility rebates, tax credits, contractor, manufacturer, and bulk purchase program discounts.

Rebates

The first rule on rebates (and tax credits) is: Don’t wait too long!

Incentive programs are designed to “transform markets” in their early stage, then to gradually lower and eliminate incentives as the market develops. So don’t procrastinate. And besides, the longer you wait, the longer you are wasting money.

PSEG-LI Rebates

LIPA, through its contractor PSEG Long Island offers a variety of rebates for energy efficient appliances, heating & cooling equipment, and solar with energy storage.

Rebates & Incentives for Solar with Energy Storage

While PSEG-LI stopped offering rebates for solar electric (PV) systems, there are new rebates and incentives available for solar PV systems with battery energy storage. These systems can provide power for critical circuits to your home during grid outages. 

New York State’s Solar Plus Energy Storage Incentive is available for the energy storage component of the system and can reduce your upfront cost by thousands of dollars. The system must be installed by a participating NY-Sun contractor who can provide more detailed info on the incentive. Contact the Town’s official Solarize contractor, GreenLogic Energy (more info here).

You may also qualify for federal and state income tax credits for the cost of your solar PV + energy storage system. 

PSEG-LI’s Energy Storage Rewards Program offers additional savings if you agree to supply power from your batteries to your home or grid a few times each year.  

NationalGrid Rebates

NationalGrid offers rebates for natural gas customers for smart thermostats, radiator valves, pipe insulation, higher efficiency gas boilers, furnaces and water heaters, and boiler reset controls, 

Financing

Financing helps if you don’t have the cash to pay the entire upfront cost of a major investment like upgrading your home’s insulation, installing solar panels, or an energy efficient heating & cooling system.

Customers with a total household income equal to or lower than 80% of State or Area Median Income (80% of State or Area Median Income), may be eligible to receive financial incentives through the PSEG Long Island Assisted Home Performance with ENERGY STAR® subsidy program.

Interested customers may also be eligible for two reduced-interest loan products through the Green Jobs-Green New York (GJGNY) program. For information on GJGNY loan products, please visit New York Financing for Energy Efficiency Projects.

Financing for Solar

NY-Sun offers two loan options for residents: On-Bill Recovery and Smart Energy loans. Loan amounts are available from $1,500 to $25,000 with loan terms of 5, 10, or 15 years to help New York residents finance solar installation. 

For additional information about residential financing, we encourage you contact GreenLogic Energy, East Hampton Town’s Solarize contractor, and to visit NYSERDA’s Paying for Solar pages and consult the NY-Sun Upstate + Long Island Program Manual [PDF] June 2022 edition.

Tax Incentives

Income Tax Credits are available for solar energy installations and certain other clean energy technologies. Be sure to consult an accountant or tax advisor before making any investments based on tax credits.

Federal Residential Energy Credit

This IRS income tax credit is available to homeowners for installations of qualified solar electric or water heating, small wind energy, geothermal heat pump, and fuel cell systems. More info regarding this credit and the 2021 IRS Form 5695 is here. Check the IRS website for the current tax year form.

This tax credit is 30% of the cost of the system (up from 26% in 2021), more here

New York State Income Tax Credits

This Solar Energy System Equipment Credit for qualified equipment installed and used at your primary residence is equal to 25% of your expenditures and is limited to $5,000. The tax credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years.

The solar energy system must use solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use.

You are entitled to claim this credit if you:

  • purchased solar energy system equipment,
  • entered into a written agreement for the lease of solar energy system equipment, or
  • entered into a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you.

More at NYS tax year 2021 Form IT-255, Claim for Solar Energy System Equipment, and its instructions.  Check NYS Department of Taxation and Finance for current year tax forms.

DSIRE – Database of State Incentives for Renewables & Efficiency https://www.dsireusa.org/ is a searchable and up-to-date resource for policies and incentives for U.S. states and can be searched by ZIP code.

Disclaimer: Energize East Hampton does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.