PSEG Long Island customers: check psegliny.com for current heat pump rebates.
If you pay a PSEG Long Island electric bill, you are standing in front of a statewide incentive most of your neighbors do not know about. New York's statewide incentive, NYS Clean Heat, is delivered through utility administrators, and for Nassau County that administrator is PSEG Long Island. This guide explains exactly how the utility side works: who qualifies, what it pays, how the money physically reaches you, and the questions that protect you from leaving rebate money on the table.
The Structure: PSEG Long Island Is the Administrator
NYS Clean Heat is state-funded. On Long Island you do not pick among other utilities. PSEG Long Island is the administrator for a Nassau electric bill.
Across Nassau, from Hempstead and Uniondale out through Levittown, down to Long Beach, and across to Valley Stream and Massapequa, the electric utility is PSEG Long Island. Your bill settles the question in one glance.
This structure has a practical consequence: program details, participating contractor networks, and processing all run through your administrator's implementation. Reading about another utility's version of Clean Heat, or a national article's blended summary, can leave you with numbers and procedures that are not quite yours.
What PSEG Long Island's Version Pays in 2026
| Feature | Value |
|---|---|
| Cost cap, standard | 70% of total project cost |
| Cost cap, enhanced | 85% in Disadvantaged Communities or Weatherized Tier |
| Eligible buildings | 1-4 unit homes (as of 1/1/2026) |
| Equipment gate | ccASHP on the NYS Clean Heat / NEEP-qualified list |
| Geothermal | Separate, higher incentive |
It replaces the standard tier rather than stacking on it, and on a whole-home conversion it is worth thousands more. Screen for it first.
Geothermal carries its own, higher incentive track. If your lot and budget put ground-source in play, it is worth a separate conversation with a participating contractor.
How the Money Actually Moves
This is the part that surprises people. The incentive is typically assigned to and applied by a NYS Clean Heat participating contractor as a discount on your project invoice.
Read that mechanism closely, because three consequences fall out of it:
You never front the incentive. The discount lands before you pay, not as a rebate check months later.
The contractor is the gate. Only a NYS Clean Heat participating contractor can apply the discount. A non-participating installer, whatever their skill or price, cannot deliver the program's money to your project. This makes "are you a participating contractor?" the first vetting question in the county, and our contractor guide builds the rest of the checklist around it.
The paperwork is theirs, the verification is yours. The participating contractor submits with the program. Your job is to require the incentive as a written line item on the quote, gross price, discount, net price, so the promise is on paper and comparable across bidders.
What Qualifies, Equipment-Wise
The full incentive pays on cold-climate air-source heat pumps (ccASHP) on the NYS Clean Heat / NEEP-qualified equipment list, ducted or ductless. The list is the program's performance screen, and on Long Island it is also your winter insurance: Hempstead's heating winter climate is cold, and qualified machines are the ones rated to deliver at temperatures like that. What the low-temperature ratings mean, and how to read them on a quote, is covered in the cold-weather equipment guide.
One boundary worth naming: the program covers 1-4 unit homes as of January 1, 2026. That includes the two-family houses common in Freeport and Hempstead village, a fact that surprises owners who assume incentives stop at single-family. If you own a two-family and heat both units from one plant, that is a program conversation worth having before your next boiler repair, because the same household cap applies to a project serving the whole building.
The enhanced 85 percent cost cap deserves a sentence of its own as well. It applies in designated Disadvantaged Communities and to households in the Weatherized Tier, and on the same gross project it can move a larger share of the project from your column to the program's. The number to use is the price on your written quote. Whether your address qualifies is a lookup, not a negotiation, and a participating contractor runs it as part of the quote.
What Is Not in the Stack Anymore
On Long Island the stack you can verify is the PSEG Long Island program. Check psegliny.com before a quote names a different payer.
The Clean Heat discount pays immediately, on the invoice.
Your PSEG Long Island Playbook
- Confirm the utility: if your electric bill says PSEG Long Island, this is your program.
- Verify the source yourself if you like: cleanheat.ny.gov and psegliny.com carry the program.
- Ask for a room-by-room load calculation before you compare quotes.
- Collect two or three bids, only from NYS Clean Heat participating contractors.
- Demand the discount in writing on every bid: gross, incentive, net. Compare nets.
- Check the model numbers against the qualified list before signing.
Six steps, one afternoon of diligence, and the program works the way it was designed to: most of the cost of a qualifying system, carried by the state, delivered through your utility, applied before you pay.
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