QUICK ANSWER
PSEG Long Island customers can stack utility rebates with federal HEEHRA rebates (up to $8,000 for heat pumps, $1,750 for heat pump water heaters for qualifying households) and the federal home improvement tax credit (30% back, no income cap) for combined savings of $3,000–$10,000+ on major upgrades. Heat pumps, heat pump water heaters, insulation, and smart thermostats all qualify, and these incentives do not reduce each other.
PSEG Long Island Energy Rebates 2026
PSEG Long Island customers can stack utility rebates, state incentives, and federal HEEHRA programs to reduce the upfront cost of home energy upgrades significantly. Here is what is available for PSEG Long Island customers in 2026.
PSEG Long Island Rebate Programs
- Heat Pump HVAC: Rebates for qualifying high-efficiency heat pump systems that replace gas furnaces or standard AC units. Check the PSEG Long Island website for current eligible models and rebate amounts.
- Heat Pump Water Heater: Rebates for ENERGY STAR-certified heat pump water heaters, which use 3x less electricity than standard electric tanks.
- Smart Thermostat: Rebates on qualifying smart thermostats (Nest, Ecobee, and others) that reduce HVAC runtime by 10-15%.
- Attic Insulation and Air Sealing: Rebates for insulation upgrades to R-38 or higher. Often combined with a no-cost home energy assessment.
- LED Lighting: Discounts on qualifying ENERGY STAR LED bulbs and fixtures available at participating retailers.
How to Apply for PSEG Long Island Rebates
- Check current rebate amounts on the PSEG Long Island website before purchasing -- amounts change throughout the year
- Purchase a qualifying ENERGY STAR-certified product from a participating retailer or contractor
- Have the product professionally installed if required by the program (required for most HVAC and water heater rebates)
- Submit your rebate application with proof of purchase within 90 days of installation
- Stack your PSEG Long Island rebate with federal tax credits for maximum savings
Federal Incentives for PSEG Long Island Customers
Stack PSEG Long Island utility rebates with these federal programs for maximum total savings:
- HEEHRA: Up to $8,000 for heat pumps and $1,750 for heat pump water heaters for income-qualifying households. Applied at point of sale by participating contractors.
- Federal Home Improvement Tax Credit: 30% back on heat pumps (up to $2,000), insulation (up to $1,200), windows (up to $600), and more -- available to all income levels. Claimed on your federal tax return.
Cities Served by PSEG Long Island
Frequently Asked Questions
How do I know if my product qualifies for PSEG Long Island rebates?
Most PSEG Long Island rebate programs require products to be ENERGY STAR certified. Many also require a specific efficiency tier (for example, SEER2 rating of 16 or higher for central AC). Check the PSEG Long Island website for the current qualifying product list before making any purchase.
Can I stack PSEG Long Island rebates with federal tax credits?
Yes. Utility rebates and federal tax credits are entirely separate programs. The federal home improvement tax credit is calculated on the full cost before any rebates you receive, so receiving a utility rebate does not reduce your federal credit. You keep both.
How long does it take to receive a PSEG Long Island rebate?
Most utility rebates are processed within 6-12 weeks of application submission. HEEHRA rebates from the contractor are applied at point of sale with no wait. Federal tax credits are received when you file your return.