room with heat pump on wall

Heat pumps

Heat and cool your business efficiently

Today’s heat pumps let you heat and cool your business year-round without using any fossil fuels on site.

Central Hudson’s incentives can help offset the upfront costs of installation, making it more affordable for businesses to adopt these efficient, all-electric heating and cooling systems.

About heat pumps

Heat pumps work by transferring (or “pumping”) heat from one place to another. In cooling mode, they work just like an air conditioner, using refrigerant to absorb heat from inside a building and transfer it outside. In heating mode, the process is reversed, pulling heat from the outside air or the ground. The warm air is then distributed indoors via ducts or wall-mounted mini-splits.

There are two main types of heat pumps: air-source and ground-source.

Air-source heat pumps (ASHP) pull heat from the air. Cold-climate models work well even in a New York winter.

Ground-source heat pumps (GSHP) pull heat from the ground. Loops full of refrigerant circulate underground.


Clockwise from top-left: An air-source heat pump outdoor condenser unit; illustration showing buried coils for a ground-source heat pump system; warm or cool air can be distributed  via air ducts (bottom right) or an air handler (bottom left).

Air-source Heat Pump Commercial Incentives

Central Hudson / Clean Heat Rebate (whole building):

  • Up to $1,000 per 10,000 Btuh if removing your oil tank or previous fossil fuel heating source.
  • Up to $700 per 10,000 Btuh if installing advanced controls that turn on existing fossil fuel systems as backup or second stage heating.
  • Up to $500 per 10,000 Btuh of heating capacity if not removing your oil tank or previous fossil fuel heating source.

Tax incentives:

  • Check with your tax advisor for current New York State tax incentives for clean heat upgrades.

Ground-source heat pumps

Central Hudson / Clean Heat Rebate (whole building):

  • Up to $2,000 per 10,000 Btuh of full load AHRI capacity. $500 of total incentive may be allocated to the contractor.

Central Hudson Clean Heat Rebate (Partial Home/Building):

  • $100 per outdoor condenser.

Federal tax credit:

  • 10% off the total cost of the GSHP system for businesses.

Case study

See how a business owner installed a ground-source heat pump system with the help of incentives from Central Hudson. Read the testimonial. Read the case study.


Heat pumps can deliver cost-effective heating. Discover if you could save by visiting our online calculator. By providing some basic information about your home and current heating system, you'll see if heat pumps would offer an annual savings savings as well as the estimated project cost, factoring in tax credits and incentives. 

Get started

Large industrial projects and multi-family buildings of five or more units

Email for more information.


All other commercial customers

Visit the New York State Clean Heat website to find a participating contractor, contact them, and you’re off! Your contractor will determine what size unit you will need for your business and provide an estimate. If you choose to proceed with the project, your contractor will reach out to Central Hudson to apply for your rebates.



To determine if your site is located in an area with sufficient feeder capacity — more likely a concern for large projects — please visit our electrification capacity map

Heat Pump Water Heaters

The same technology that provides highly efficient space heating and cooling can also heat your business's water. Take advantage of rebates and incentives while they last.