Heat Pump Savings Calculator in New York

Compare heat pump and furnace heating costs in New York. Uses local climate data (5800 HDD), electricity rates, and fuel prices for accurate savings estimates.

What New York Residents Should Know

New York falls in IECC climate zone 4-6A with 5,800 heating degree days per year — well above the national average. New York's cold winters mean heat pump COP averages 2.4 during the heating season. While this is lower than milder states, modern cold-climate heat pumps with inverter compressors can still deliver meaningful savings over traditional heating systems, especially when paired with a backup for the coldest days.

With natural gas at $1.60 per therm in New York, a gas furnace may have lower operating costs in the coldest months. However, heat pumps provide both heating and cooling in one system, which can offset the difference when you factor in AC savings. In shoulder seasons (spring and fall), a heat pump is significantly more efficient, often making the overall annual cost competitive with gas.

New York residents can access up to $15000 in state rebates and incentives for heat pump installations, in addition to the federal 25C energy efficient home improvement credit. These incentives can significantly reduce the upfront installation cost, which typically ranges from $4,000 to $8,000 depending on system size and complexity. Run the calculator above with your home details to see your personalized payback estimate.

Avg. Electricity Rate

$0.220/kWh

Avg. monthly bill: $142

Regular Gas Price

$3.50/gal

Natural gas: $1.60/therm

Heating Degree Days

5,800

Cooling: 800 CDD

TOU Peak Rate

$0.340/kWh

Off-peak: $0.140/kWh

Available Incentives in New York

IncentiveTypeAmountDescription
Energy Efficient Home Improvement Credit (Heat Pump - 25C)tax credit30%Tax credit for installing a qualifying heat pump, heat pump water heater, or biomass stove. Covers 30% of the cost up to $2,000 per year. Can be combined with other 25C credits up to $3,200 annual limit.
EmPower+ Heat Pump Programrebate$15,000Rebates for air-source and ground-source heat pumps, ranging from $1,000 to $15,000 depending on system type and household income level.

Run the Heat Pump Savings Calculator

Use our free calculator pre-filled with New York data to see your personalized results.

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