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Central Air-Source Heat Pump Rebates

Get rebates when you upgrade to a central air-source heat pump—a cleaner, more energy-efficient way to heat and cool your home or business.

An HVAC technician installs a central air-source heat pump component as part of an energy-efficiency upgrade.

About

A central air-source heat pump is an all-in-one, electric-powered system that uses your existing ductwork to provide both heating and cooling. It’s a straightforward upgrade that can replace your central AC or furnace while using energy more efficiently—even in colder weather.
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How It Works

Unlike furnaces that burn fuel to generate heat, central air-source heat pumps use electricity to transfer heat, even in cold weather. In summer, they move heat outside to keep your home or business cool and comfortable. In winter, the process is reversed, extracting heat from the outdoor air and bringing it inside to provide warmth. The result is lower energy use, improved indoor comfort, and a smaller carbon footprint for homes and commercial facilities alike.

  • In summer, it pulls heat from inside your building and moves it outside to keep your space cool and comfortable.
  • In winter, it runs in reverse, pulling heat from the outdoor air and bringing it inside to warm your space.
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Benefits of Air-Source Heat Pumps:

Illustration of an energy report showing a home heat pump delivering exceptional energy efficiency and reduced electricity use.

Exceptional Efficiency

Delivers up to 3x more energy than it consumes.
Illustration of a heat pump providing year-round comfortable temperatures with heating and cooling with a single indoor and outdoor system.

One System, Year-Round

Can replace your central AC or furnace.
Illustration of a home air filter representing improved indoor comfort through cleaner air, better humidity control, and quieter operation.

Improved Comfort

Filters, dehumidifies the air, and is quieter than traditional HVAC equipment.
Illustration of an energy-efficient heat pump providing cleaner, lower-emission heating and cooling for the home.

Cleaner Heating & Cooling

Lower emissions and better for the environment.

Rebates and Incentives

Rebates and incentives help lower the cost of purchasing and installing a heat pump. Your total project cost will vary based on your home or building size, the system you choose, and installation.

O&R customers may qualify for:

  • Utility rebates
  • State programs
  • Federal rebates
  • Financing options

A participating contractor can help you estimate your costs after rebates and incentives are applied.
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Find Your Savings

Select your state and customer type for your planned upgrade to see the rebates, incentives, and next steps.

Customers may qualify for rebates on central air-source heat pumps installed by a participating contractor. Enhanced incentives for Disadvantaged Communities. See if you qualify

Cold Climate Air-Source Heat Pumps (CCASHP)

Cold-climate air-source heat pumps (CCASHPs) are engineered to operate efficiently in extreme cold, helping homes and businesses maintain comfort while improving energy efficiency. These types of heat pumps qualify for the highest available rebate tiers.

Customers can improve facility comfort and reduce operating costs with a qualifying central air-source heat pumps installation.

Custom Rebates for Commercial Customers

Commercial customers in New York may be eligible for additional incentives to reduce installation costs of energy efficient technologies.

New Jersey — Residential

Customers may qualify for incentives through Orange & Rockland in combination with available New Jersey state energy programs.

Cold Climate Air-Source Heat Pumps (CCASHP)

Cold-climate air-source heat pumps (CCASHPs) are engineered to operate efficiently in extreme cold, helping homes and businesses maintain comfort while improving energy efficiency. These types of heat pumps qualify for the highest available rebate tiers.

New Jersey Residential customers may also qualify for HVAC rebates, learn more here.

Hybrid Heat Pumps

A hybrid system pairs an electric air-source heat pump with your existing gas furnace, giving you the efficiency of a heat pump during mild weather and the reliability of your furnace as a backup when temperatures drop. It's a practical, lower-commitment first step toward cleaner heating that still qualifies for incentives.

New Jersey Residential customers may also qualify for HVAC rebates, learn more here.

New Jersey — Business

Customers can take advantage of rebates and state incentives to make energy-efficient upgrades more cost-effective.

Standard Central Air-Source Heat Pump

Standard central air-source heat pumps are an energy-efficient alternative to central AC systems and can help reduce energy use while qualifying for meaningful rebates through O&R and state programs.

New Jersey Business customers may also qualify for HVAC rebates, learn more here.

Hybrid & Other Air Source Heat Pumps

A hybrid system pairs an electric air-source heat pump with your existing gas furnace, giving you the efficiency of a heat pump during mild weather and the reliability of your furnace as a backup when temperatures drop. It's a practical, lower-commitment first step toward cleaner heating that still qualifies for incentives.

New Jersey Business customers may also qualify for HVAC rebates, learn more here

FAQs

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