Renewable Heat NY

December 21, 2021


NOTE: On August 2015, NYSERDA increased the incentive levels for technologies offered under the Renewable Heat NY program. In general, new incentives fund up to 45% of the total project cost, which is a significant increase from previous incentive cap of 25% of the total cost for most projects. See the summary below for changes in the program. 

Renewable Heat NY program offers rebates to install high-efficiency, low-emission wood heating system for residential and commercial customers in New York. The program is administered by New York State Energy Research and Development Authority (NYSERDA) and is funded through the Regional Greenhouse Gas Initiative (RGGI) funds. Total of $27 million is available for the 2015 fiscal year, which is dispensed on a first-come, first-serve basis until the funds are exhausted.


The incentive is only available for New York State homeowner or business owner without existing natural gas service. The heating system must be installed by a participating installer to qualify for the incentive. List of qualifying installers and information to register as an installer is available at the program website.

Program Description

Interested participants can contact a qualified installer, who will provide a quote for the system and will submit necessary paperwork for rebate. The rebates are paid out directly to the contractors after approval by NYSERDA.  Incentive amount depends on the sector and the heating systems. The new heating equipment has to be certified by the program or has to meet certain system performance standards to qualify for the program. Additional incentives are available for low income households with income less than 80% of the county median.

Customer Type

System Technology

Incentive type


Wood Pellet Stove

$1,500 (up to $2,500 for low income homeowners)

Advanced Cordwood boiler with Thermal Storage

20% of installed cost up to $5,000, and up to $5,000 for recycling

Wood Pellet Boiler with Thermal Storage

45% of the installed cost up to $36,000, and up to $5,000 for recycling

Commercial- Small

Advanced Cordwood boiler with Thermal Storage

25% of installed cost up to $5,000, and up to $5,000 for recycling

Small Pellet Boiler with Thermal Storage less than 300 Mbtu/h (88kW)

45% of the installed cost up to $36,000, and up to $5,000 for recycling

Commercial- Large

Large Pellet Boiler with Thermal Storage more than 300 Mbtu/h

40% of the total installed cost up to $200,000

Tandem Pellet Boiler with Thermal Storage more than 300 Mbtu/h (88 kW)

45% of the installed cost up to $270,000

In addition to rebates, the program also offers low interest loans to fund the projects.



Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Rebate Program
Web Site:
Administrator: NYSERDA
Start Date: 07/29/2014
Eligible Renewable/Other Technologies:
  • Biomass
Incentive Amount: Depends on the size of the system, additional incentives up to $5,000 available for recycling.
Maximum Incentive: 45% of the project cost.
Equipment Requirements: Equipment be new
Heaters must be approved by NYSERDA or has to meet system performance requirements
Installation Requirements: Must be installed by participating contractor
Ownership of Renewable Energy Credits: Not applicable.


This program has 2 incentives
Technologies: Biomass
Sectors: Commercial, Industrial, Nonprofit, Residential, Federal Government, Agricultural
Parameters: The incentive has a minimum of 45.00 % of cost
Technologies: Biomass
Sectors: Residential, Federal Government
Parameters: The incentive is 1500.00 $/Unit


Address: 17 Columbia Circle
Albany NY 12203-6399
Phone: (866) NYS-ERDA

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.