1. Save Energy, Save Money - PSEG Long Island
  2. Clean Energy

Geothermal Energy

Use the Energy From the Earth to Heat and Cool Your Home

Renewable, sustainable energy could be right in your backyard. Find out if geothermal is right for you!

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Geothermal rebates are available through our participating Geothermal Partners. Eligible equipment must be purchased from AND installed by participating Geothermal Partners. To determine eligibility, please contact one of our participating partners.
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Higher Rebates
The PSEG Long Island ground source heat pump rebate is $1,500 per heating ton (and $3,000 per heating ton for income eligible customer). In addition, we aligned our requirement to match ENERGY STAR®. A new qualifying three-ton ground source heat pump system rebate is $4,500 ($9,000 for income eligible).

Space Heating
Efficiency Requirements Customer Rebate (Market Rate) Customer Rebate (Income Eligible Rate) 

Water to Air:
Closed: EER ≥ 17.1 and COP ≥ 3.6
Open: EER ≥ 21.1 and COP ≥ 4.1

Water to Water:
Closed: EER ≥ 16.1 and COP ≥ 3.1
Open: EER ≥ 20.1 and COP ≥ 3.5

DGX:
EER ≥ 16 and COP ≥ 3.6

 $1,500/12,000 heating BTU (new) $3,000/12,000 heating BTU (new)
$$500/12,000 heating BTU (retrofit $1,000/12,000 heating BTU (retrofit)
Dedicated Water Heating
Efficiency Requirements Customer Rebate (Market Rate) Customer Rebate (Income Eligible Rate)

Water to Water:
Closed: COP ≥ 3.1
Open: COP ≥ 3.5

 $1,000/12,000 heating BTU (new)  $2,000/12,000 heating BTU (new)
$500/12,000 heating BTU (retrofit $1,000/12,000 heating BTU (retrofit)

Residential Energy Efficiency Property Credit
Your energy efficient geothermal systems may also qualify for a federal tax credit. The Bipartisan Budget Act of 2018 reinstated the residential renewable energy tax credit for renewable technology including ground source heat pumps. You may claim a tax credit of 30% for qualifying systems, by using IRS Form 5695 . Please consult with your tax accountant and your ground source heat pump installer for more details. There is also a New York State income tax credit for 25% of the geothermal project cost, capped at a maximum credit of $5,000. The details are in Section 606 (Credits against tax), Subsection (g-4) Geothermal energy systems credit.  

For Geothermal Contractors
Please see the following geothermal documents:

 

 

NEW = Installation of a new geothermal system. RETROFIT = Replacement of an existing geothermal system.
Wells are to be adequately sized for the load of the incentivized systems. Heating BTU is based on full-load rated capacity on AHRI
certificate. The efficiency requirement applies to single stage GSHP models. Multi-stage GSHP models may be qualified based on:
n EER = (highest rated capacity EER + lowest rated capacity EER) / 2
n COP = (highest rated capacity COP + lowest rated capacity COP) / 2
Additional $250 rebate for qualifying desuperheater when installed on residential systems and, in conjunction with, an electric tank storage water heater.
Rebates are capped at $25,000 (Market Rate) and $35,000 (Income Eligible Rate).