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Con Edison Commercial and Industrial (C&I) Clean Heat Program

Program Name: Con Edison Commercial and Industrial (C&I) Clean Heat Program
Program Sponsor: Con Edison & NYSERDA
Program Type:          Incentives/ Rebates
Technology:               Alternative Energy Generation/ Renewables
Fuel:                        Electricity
Eligibility:  Must be a Con Edison customer; Commercial or Industrial Properties
Cost: Application Based


To achieve New York State’s goals for a low carbon future, NYSERDA and the New York electric utilities have partnered to offer a range of initiatives to make heat pumps more affordable and accessible. Through the program, Con Edison offers customers incentives to reduce the upfront costs of Air-Source Heat Pumps (ASHPs) and Ground-Source Heat Pumps (GSHPs) for both space heating and cooling as well as for Heat Pump Water Heaters for water heating.

Extraordinary program growth in late 2021 into early 2022 lead the New York State Public Service Commission to pause applications for Commercial and Industrial GSHPs, and limit custom GSHP incentives to a $1 million maximum per project. In August 2022, the PSC approved an additional $518 million in funding and up to $10 million per month of additional funding.

However, Con Edison ended program incentive structures for Category 4 (Custom Space Heating Applications) and Category 4A (Heat Pump + Envelope) ground source heat pump (GSHP) projects, waitlisting these projects effective July 11, 2022. Funding for these categories and ASHPs was exhausted and has yet to resume.

Buildings in the area affected by the Westchester Natural Gas Moratorium can receive an incentive increase of 30% above the current incentive rates.

Eligibility (Customer and Site)

  • Con Edison Commercial customers with average peak demand over 100 kW on a rolling 12-month basis are eligible for C&I Clean Heat incentives, excluding Multifamily buildings. Commercial customers between 100-300 kW may also choose to participate with Con Edison through the Small to Medium Business (SMB) track of the NYS Clean Heat Program.
  • Customer must not have applied for or received an incentive from another Con Edison program or from another utility for the same project. Customers who have applied for or received an incentive from the New York State Energy Research and Development Authority (NYSERDA) may be eligible to stack incentives pending NYSERDA program rules. New York Power Authority (NYPA) electric customers are not eligible for Clean Heat Program incentives.
  • The site must be occupied year-round or, in the case of planned installations at new construction sites, site owners must plan to have the site occupied year-round.
  • The Con Edison customer of record listed on the application is a directly metered commercial or industrial customer.
  • Equipment must be installed after customer allows for a pre-installation inspection, signs and submits a signed Preliminary Offer Letter from Con Edison, and receives a Notice to Proceed from Con Edison.
  • Heat pump projects are eligible for incentives when they replace other technologies and fuels (e.g., fuel oil, natural gas, propane, biomass, or electricity) in existing buildings. Heat pump projects are not eligible to receive Clean Heat incentives when they replace like-for-like technologies (e.g., ASHP-for-ASHP or GSHP-for-GSHP).

Interested customers should refer to the Program Guidelines to confirm eligibility.

How the Program Works

The first step is to find and hire a participating contractor that will help identify appropriate equipment and install the heat pump. Con Edison will conduct a post-inspection following heat pump installation to determine the final projects savings and incentives.  Program rebates will then be deducted by the installer from the total project cost.

The Program offers 9 categories of incentives based on the specific type of heat pump technology and application. Interested customers should consult the Program Guidelines for eligible heat pump technologies, applicable incentives, and required installation timelines for existing buildings versus new construction and gut renovations.

How to Apply

Customers and their Participating Contractor should submit an application package with the following documents: completed program application, scope of work, energy savings analysis, form W-9 of the incentive recipient, cost estimate for proposed work, equipment cut sheets, and other measure-specific documentation noted in the program manual via email to with a subject line of New C&I Clean Heat Application – [Applicant Name].

More information about the application process can be found here.

Contact Information

Questions can be emailed to