Heat pump incentives in Manhattan
In Manhattan, ductless and VRF heat pumps suit offices and apartments where running new ductwork is impractical — and electrification is one of the main levers for buildings facing Local Law 97.
We size the system with your mechanical subcontractor, confirm the decommissioning requirements, and file the electrification application alongside any efficiency measures in the same project.
Heat Pump Incentives in Manhattan: what to know
Manhattan's small commercial customers are mostly ground-floor tenants — restaurants, retail, salons, medical and professional offices — inside larger mixed-use buildings, alongside a deep stock of prewar walk-ups and elevator apartment buildings uptown.
Con Edison supplies electricity across Manhattan and gas service in the borough as well, so both electric and gas-saving measures can be in play if your gas account is firm service with Con Edison.
Permits and local rules in Manhattan
Mechanical and electrical work in Manhattan follows NYC Department of Buildings rules, and many buildings over 25,000 sq ft are covered by Local Law 97 emissions limits.
Lighting in 2026
Con Edison's 2026 Small Business lighting incentives are offered only in the Jamaica Neighborhood (Southeast Queens) area, so for Manhattan businesses we focus on HVAC, refrigeration, envelope and electrification measures.
Local Law 97
Many Manhattan buildings over 25,000 sq ft are covered by NYC's Local Law 97 emissions limits. Efficiency and electrification upgrades lower a building's emissions — we show the expected savings of each measure so you can plan around your limits.
Where we work in Manhattan
- Harlem
- Washington Heights
- Inwood
- East Harlem
- Lower East Side
- Chinatown
- Midtown
- Chelsea
What's typically included
Cold-climate air-source heat pumps
Ductless and ducted ccASHP systems for storefronts, offices and apartments.
VRF systems
Variable refrigerant flow for larger commercial spaces and multifamily buildings.
Heat pump water heaters
Domestic hot water electrification for businesses and central DHW plants.
Whole-building electrification
Full-load space heating electrification projects, handled as custom applications.
What Con Edison's program rules say
For small businesses, heat pump incentives require decommissioning the existing fossil-fuel heating system, and per-project amounts scale with conditioned floor area.
Small Business custom electrification incentives (full-building heating and hot water) are limited to 50% of project cost or $400,000, whichever is lower.
Multifamily electrification projects fall under the same per-project caps: 85% of cost for affordable (AMEEP) and 70% for market-rate buildings.
Source: Con Edison — Affordable multifamily buildings (AMEEP)
Program rules as published for 2026; Con Edison can change incentives and terms. We confirm current terms before every proposal.
Check eligibility for your Manhattan property
Heat Pump Incentives in Manhattan: FAQ
Can Manhattan businesses get heat pump incentives through Con Edison?
Con Edison supplies electricity across Manhattan and gas service in the borough as well, so both electric and gas-saving measures can be in play if your gas account is firm service with Con Edison. If your electric bill comes from Con Edison, you can apply.
Does Clean Ridge work in all of Manhattan?
Yes — from Inwood to the Battery. Every Manhattan address is in Con Edison's electric territory.
My landlord pays the electric bill — can I still apply?
The program application is signed by the Con Edison account holder or the owner. If your landlord holds the account, we can prepare the paperwork for their signature.
Do I have to remove my boiler or furnace to get heat pump incentives?
For Con Edison's Small Business heat pump incentives, yes — the existing fossil-fuel heating system must be decommissioned. Multifamily programs have their own rules for full-load heat pumps; we walk you through them for your building.
Are heat pumps a good fit for older NYC buildings?
Often, yes. Cold-climate air-source heat pumps heat effectively in New York winters, and ductless systems avoid opening walls. The walkthrough tells us whether your electrical service can carry the load.
Talk to Clean Ridge about your Manhattan business
Call now — we'll tell you which Con Edison programs your property may qualify for and what the next step is.