States are making moves to provide residents and businesses with the means to develop sustainable practices and lower their carbon footprints. New York State is rolling out new rebates for companies to reduce energy consumption through upgrading their buildings equipment. In collaboration with Con Edison, Clean Heat Incentives provide rebates on heat pumps, water heaters and more.

Whether you manage a warehouse, operate an industrial facility, or oversee a multifamily complex, these Commercial and Industrial Clean Heat Incentives are designed to make it easier and more affordable to upgrade to cleaner, more sustainable systems.

What Is the NYS Clean Heat Program?

The NYS Clean Heat Program is a collaboration between Con Edison, NYSERDA, and other New York utilities. Its mission is to promote the adoption of electric heat pump systems for both space and water heating. These systems reduce greenhouse gas emissions, improve building performance, and can significantly cut energy costs over time.

Eligible technologies include:

• Air Source Heat Pumps (ASHPs)
• Air-to-Water Heat Pumps (AWHPs)
• Ground Source Heat Pumps (GSHPs)
• Heat Pump Water Heaters (HPWHs)
• Building envelope improvements
• Advanced heat pump controls
• Heat recovery chillers and dedicated outdoor air systems
• Energy recovery ventilators

Clean Heat Incentives for Commercial & Industrial Projects

Businesses with over 100 kW of peak demand are eligible for C&I Clean Heat Incentives through Con Edison. The program focuses on helping these larger energy users electrify their heating and hot water systems efficiently and cost-effectively.

Key incentives include:

• Custom Space Heating
  Base rate: $120–$150 per MMBtu saved
  2025 Limited-Time Offer (LTO): Up to $225/MMBtu
• Custom Hot Water Heating
  Base rate: $200/MMBtu
  2025 LTO: $275/MMBtu
• Custom Partial Load Space Heating
  Base rate: $70/MMBtu
  2025 LTO: $145/MMBtu

The total incentive for any C&I project is capped at $1 million per project or 50% of project costs, whichever is lower.

Ground Source Heat Pump (GSHP) Incentives for C&I

For those considering ground source heat pumps, which offer some of the highest efficiencies available, there are additional rebate opportunities:

• Custom GSHP incentives: $125–$225/MMBtu (higher for retrofits in existing buildings)
• Prescriptive incentives (for multifamily units): $5,000 per apartment
• Thermal Conductivity Test (TCT) incentive: Up to $40,000 or 50% of testing costs

These incentives can dramatically reduce the upfront costs of implementing a GSHP system, which often yields long-term energy savings and carbon reductions.

Multifamily and Small Business Rebates

Although technically under non-residential sectors, multifamily properties and small businesses (those under 300 kW demand) have their own tailored rebates:

Multifamily (5+ units)

• ASHP with decommissioning: $5,000/unit (2025 LTO: $7,000/unit)
• Custom space heating: $200–$225/MMBtu
• Hot water heating: $200/MMBtu (custom) or $1,000/unit (prescriptive)
• Max cap: $1 million or 50% of project cost

Small Business

• ASHP incentives: $5,000–$12,500/project depending on building size
• Custom heating/hot water:
  Base: $150–$200/MMBtu
  2025 LTO: Up to $275/MMBtu
• Max cap: $200,000/project (LTO cap: $400,000)

Why Act Now?

The 2025 Limited-Time Offers make this an ideal time to apply for Con Edison Clean Heat Incentives. Higher rates are available for qualifying projects that meet submission and installation deadlines, enabling businesses to maximize their return on investment.

In addition to financial incentives, businesses benefit from:

• Lower energy bills through increased efficiency
• Improved indoor air quality and comfort
• Support in meeting local carbon-reduction mandates and building performance standards

Maximize Savings with Incentive Rebate360

Upgrading equipment is a key way properties can reduce energy consumption and prepare for the future. Con Edison is working with New York State to help advance cleaner energy practices in businesses and multifamily homes throughout the state.

If you are in the Con Edison coverage area and believe you qualify for these rebates, reach out to Incentive Rebate360 today. Call 480-653-8180, email [email protected], or schedule a call that fits your needs by clicking the button below!