Heat Pumps: An Environmentally Friendly Way to Cool (And, of Course, Heat) Your Home

From keeping the lights on to cooling and heating our homes, every part of New York’s clean energy transition depends on replacing fossil fuels with cleaner, more efficient technologies. Heat pumps are one of the most important – and often misunderstood – tools in that effort. As more New Yorkers consider making the switch, here’s what you need to know about how they work, what they cost, and why they’re becoming a cornerstone of our clean energy future.

In New York City, two-thirds of the carbon pollution comes from buildings. In New York State, it’s one third, the largest polluting sector.

Heat pumps are a confusing name, because they can heat your home in the winter and cool your home in the summer. 

Heat pumps, which run on electricity, work by extracting heat from the air, ground or water and transferring it inside a building for heating and, in warmer months, reversing the air flow and then using a refrigerant on return to cool the air going into the home. Since heat pumps transfer heat, rather than generate it through the use of greenhouse gas emitting boilers, furnaces and electric heaters, they reduce the carbon footprint. And the more electricity to power the heat pumps that is produced by solar, wind and hydro, the footprint decreases even more.

There are three types of heat pumps: Geothermal, air source and water heated, with the first two the best for colder climates across New York State. For detailed info about the differences and what types of homes and buildings they are best suited for, see cleanheat.ny.gov.

Heat pumps are considerably more energy efficient than the traditional greenhouse gas producing systems most people now use.

“Heating your home with a heat pump typically costs less than oil, propane, or electric baseboard heat and is more environmentally conscious,” states NYSERDA. “Dual Heating and Cooling: In addition to eproviding heating efficiency, high-performance heat pumps help you save on cooling costs and are substantially more efficient than window A/C units.”

In Finland, Sweden and Norway, heat pump use over the past 30 years contributed to reducing carbon emissions by approximately 80 percent in the three Nordic countries, according to a detailed article at carbonbrief.org. 

New York State is part of the U.S. Climate Alliance, a coalition of 25 environmentally-conscious governors who have a goal of reaching 20 million heat-pump installations across the coalition states by 2030. This would involve quadrupling the number of heat pumps installed in New York State during this same period.

The trends are promising. Sales figures across the state, and the country, are increasing drastically, and 2025 was the fourth year in a row that heat pumps have outsold fossil gas–fired furnaces in the U.S. 

Two big consumer issues hover over the potential purchase of heat pumps. First, the cost, and second, whether the pumps can adequately heat buildings and homes in New York State, particularly up north, where winters are particularly cold.

Let’s tackle the first question: how much does it cost?

The answer: it depends. It depends on what type of heat pump system you purchase and where the building is located. Obviously, the size of the home or the building is a significant factor as well. There are considerable savings available through the NYS Clean Heat program.

NYSERDA’s website allows a consumer to input their address, the type of home and approximate year it was built and it will provide you with several estimates of rebates, depending on the type of heat pump you purchase. 

To actually determine the full extent of a potential state tax rebate, a consumer will need to speak with companies that sell and install the heat pumps. It is advisable to speak with several contractors about your heating and cooling needs and the costs before making a decision which company to use. Through NYSERDA, consumers can search online for names of state-approved contractors.  

The second crucial question is whether heat pumps successfully heat homes and buildings in extreme cold?

The answer: yes. “There are heat pumps available today that are specifically designed to work in cold climates and are capable of meeting up to 100% of a New York home’s heating needs,” says NYSERDA, adding that consumers should “always check to ensure the product [they] are considering is on NEEP’s cold-climate heat pump product list.”

If you have any doubt, look no further than the Nordic region of Europe, comprising Sweden, Finland and Norway. The three countries are the coldest countries in Europe and are the world leaders in heat pump use, with 40 percent of the households using them.

For business owners, an excellent source is heatsmartcny.org. The website will help you find an appropriate contractor, get rebate information, while listing more than 30 commercial buildings or locations around the state that have installed heat pumps — from SUNY campuses to Syracuse University, to a town library, a town hall and a pizzeria, to a nature center, a food bank and a hotel.   

NYSERDA can be your go-to source for comprehensive info about heat pumps and whether it’s a good option for your home or business. We encourage all homeowners and businesses to take a look.

Homeowners can start with a free home assessment. Schedule one here.  

This article, written by Peter Aronson in 2025, has been updated to reflect new information.