The oil truck pulls away and leaves a slip in the door, and you start doing the math on another winter of fill-ups. That is usually when a heat pump goes from something the neighbors have to something you want a price on. On Long Island it is a real option now, but a whole-house system is a bigger project than swapping a boiler, and the rebate comes with conditions that shape the whole job.
Can a heat pump carry a Long Island winter
A heat pump moves heat from the outdoor air into the house. The colder it gets outside, the harder that is, which is why the equipment matters so much here.
All Island Comfort puts Long Island’s winter design temperature, the cold the system is sized for, at about 11 to 15°F. The rebate only pays for cold-climate models on NEEP’s product list. NEEP’s specification requires a variable-capacity compressor and a coefficient of performance above 1.75 at 5°F, meaning the unit still delivers more heat than the electricity it uses on a 5 degree night.
What a whole-house system costs installed
All Island Comfort publishes its numbers for converting an oil-heated home:
| System | Installed price | Source |
|---|---|---|
| Whole-home ducted cold-climate heat pump | $12,000 to $18,000 before rebates | All Island Comfort (Oct 2026) |
| Typical net after rebates | $7,000 to $16,000 | All Island Comfort (Oct 2026) |
For a house without ducts, ductless heads in each area are the usual route; see mini splits for that price.
Two things can push the price up: the electric panel and the house itself. A heavily loaded 100-amp service may need to go to 200 amps for a heat pump that draws 30 to 60 amps, per All Island Comfort. And Cornell’s Suffolk extension office wants the drafts sealed first, with weatherization done before the equipment goes in.
PSEG’s conditions, and why they shape the design
PSEG Long Island pays between $4,000 and $7,500 toward a qualifying whole-house system in 2026, depending on household income and location. The money comes with design rules:
- a PSEG participating contractor has to do the install
- the job needs a Manual J load calculation
- the system has to be sized for 100 to 120% of the house’s full heating load
- the outdoor unit has to be a NEEP-listed cold-climate model
- the old fossil fuel system must be removed, or dual fuel controls installed
That 100 to 120% rule is the big one. A system sized to heat only part of the house does not qualify. Our rebate guide has the income limits and the state programs that stack on top.
Keeping the oil or gas system as backup
PSEG allows it, with a condition. If the existing fossil fuel system stays, the heat pump must be the primary heat source and the old system secondary, run by dual fuel or integrated controls. PSEG’s January 2025 program announcement says simple freeze thermostats no longer count for that.
All Island Comfort points out the tradeoff: keeping the boiler as backup keeps the tank and the service costs alive. Removing it means the heat pump has to do the whole job, which is why the sizing rule exists.
Rate 580 and the electric bill
Heating with electricity moves your winter cost from the oil bill to the PSEG bill. PSEG has a discounted winter delivery rate, Rate 580, for homes where the heat pump is the main heat source, and you have to ask to be moved onto it. The rebate guide has its terms.
Leave the old federal heat pump credit out of any 2026 math. Per the IRS Form 5695 instructions, it does not apply to equipment installed after 2025, even if an older brochure still shows it.
What to ask a heat pump installer
- Are you a PSEG Long Island participating contractor, and when do you file the rebate paperwork, before or after the install?
- Can I have a copy of the Manual J, and what percentage of my heating load does this system cover?
- Is the outdoor unit on the NEEP cold-climate list? Ask for the model number and look it up.
- Does my electric panel have room, and is an upgrade in this price?
- If I keep the boiler, which dual fuel controls are you installing, and at what outdoor temperature does the boiler take over?
- What is the county license number? See the license guide.