Insulation Rebates in New York and New Jersey

Section 25C, the federal energy efficient home improvement credit, covered
30% of the cost of insulation and air sealing materials, not the installation labor, up to an annual cap. The IRS wording is
“The credit will not be allowed for any property placed in service after
December 31, 2025.” ENERGY STAR says the same: the credit ran through
31 December 2025. What 2025 work can still claim, and the paperwork, is in our insulation tax credit guide.

There is no federal homeowner tax credit for insulation installed in
2026. Not in New York, not in New Jersey. If a contractor still has a
30% federal credit line in a quote, that quote is wrong, and tax time is an
unpleasant place to find out.

With Con Edison closed, Comfort Home is the working program for most
Westchester homeowners. It pays in fixed packages rather than per square
foot.

• Good Package — $2,500. Seal air leaks and insulate
  the attic and rim joist. NYSERDA puts the average saving at 14% on heating and
  cooling.
• Better Package — $3,000. The above plus wall and
  floor insulation. NYSERDA puts that at about 20%.
• Windows add-on — $2,000. After the air sealing and
  insulating, upgrading to ENERGY STAR windows. NYSERDA puts the additional saving
  at 8%.

Repeat participants can get up to $1,000 if the earlier
project was within the past year, up to $2,000 if it was longer
ago.

Eligibility, in NYSERDA’s words: “Homeowners of one-to-four family homes who
pay into the System Benefits Charge (SBC) on their electric bill are eligible to
participate.” That charge is on most investor-owned utility bills in the state,
so it is a low bar here.

Two rules catch people. The work has to be done by a contractor on NYSERDA’s
approved Comfort Home list. And the house has to meet the conditions of the
entire package — you cannot complete two thirds of the
Better Package and collect $3,000.

One add-on to ignore. Older NYSERDA material carried a
Westchester add-on for homeowners who were not eligible for Con Edison’s Weather
Ready Program. NYSERDA’s July 2026 program manual change log removed it, the
fact sheet behind it is dated July 2024 and describes a retired package
structure, and Weather Ready is now closed to everyone. Do not budget for
it.

Earlier versions of this page described a NYSEG insulation and air sealing
incentive as open. We could not confirm that it is. NYSEG’s website did not
respond when we tried to read its insulation and air sealing page, most recently
on 24 October 2026, so we have taken the claim down rather than repeat it
unchecked. If you are a NYSEG customer, read NYSEG’s own page (linked at the
bottom of this page) or ask NYSEG before you count on a NYSEG rebate.

What we can confirm is NYSERDA’s side. The Comfort Home program manual
(July 2026) names NYSEG among the six utilities whose electric customers can
qualify, provided they pay into the System Benefits Charge and own a one-to-four
unit home (or are authorized by the owner), so the Comfort Home packages above
are open to NYSEG customers on the same terms.

NYSEG serves parts of six Westchester towns:
Bedford, Lewisboro, North Salem, Pound Ridge, Somers and
Yorktown. Parts. The boundary does not follow the town line — a
substantial share of each is Con Edison electric, and neighbors on the same road
can be on different utilities.

Read the name on your electric bill. That is the only
reliable way to know. Con Edison is the sole gas utility in Westchester County,
so a Con Edison gas bill tells you nothing about who delivers your
electricity.

Where PSEG Long Island delivers the electricity, NYSERDA’s Comfort Home packages do not apply. The program manual (July 2026) says it plainly: “Homes served by PSEG LI are not eligible for Comfort Home.” PSEG Long Island runs its own Home Performance with ENERGY STAR program instead. Here is how its own pages describe it (read 24 October 2026).

• It starts with a free Whole House Energy Assessment: a check of insulation and drafts, a thermal scan to find hidden heat loss, and a blower door test to find air leaks. To apply, PSEG Long Island says to find a contractor and then complete its online application.
• Rebates run through its participating contractors. In PSEG Long Island’s words, “In order to be eligible for rebates, you must use one of our participating contractors.” Its weatherization page adds that “certain rebates and incentives may require the use of participating contractors and compliance with program requirements.”
• Insulation has to come with air sealing. Attic, wall, floor, band joist, basement and crawl space insulation “must be accompanied by blower door assisted air sealing per BPI standards.”
• What its 2026 rebate list shows. The Home Performance rebate list effective 1 January 2026 shows insulation at $2,500 and air sealing at $1,000 at the market rate, $3,125 and $1,250 in a middle column, and $5,200 and $2,000 in a low-income column, for single-family homes in PSEG Long Island territory whose primary heating fuel is oil, natural gas, propane or electric. PSEG Long Island calls the list a “general guide” and says eligibility “may vary” with the efficiency requirements for each upgrade, the results of the home assessment and the funding source; neither the list nor the web page says whether these are fixed amounts or maximums. The 2026 list heads the middle column “Disadvantaged Community & Moderate Income” and the low-income column “Low Income & Low Income Disadvantaged Communities”; the web page heads them “Market & Disadvantaged Community Rebate” and “Low Income & Disadvantaged Communities.”
• Income tiers are PSEG Long Island’s own. For 2026 it sets the low-income line at 60% and the moderate-income line at 80% of area median income, and low-income rebates require its income verification.
• Financing and EmPower+. PSEG Long Island’s 2026 list says program financing is available for all eligible measures through NYSERDA, and its assessment page, under low-income rebates, names low-interest On-Bill Recovery Loans and Smart Energy Loans through Green Jobs – Green New York. It also encourages homeowners to work with contractors who also take part in NYSERDA’s EmPower+.

Check any contractor in PSEG Long Island’s contractor finder before the work starts. PSEG Long Island’s weatherization page also says you can shop weatherization products on the PSEG Long Island Marketplace, and that “eligible products may include instant rebates at checkout.”

We work across Bergen County. Since 2021 New Jersey’s residential efficiency programs have been run by the utilities under the state’s Clean Energy framework, so the program you can use depends on who sends your electric bill. PSE&G supplies gas to every Bergen town we cover; electricity is PSE&G in most of them and Rockland Electric (the New Jersey arm of Orange & Rockland) in Closter, Cresskill, Mahwah, Montvale, Norwood and Ramsey.

PSE&G Whole Home Energy Solutions offers up to $7,500 in rebates toward air sealing, insulation and related work, plus 0% on-bill repayment of up to $25,000 over 7 or 10 years. It starts with PSE&G’s home energy assessment, and the work must be done by a BPI-certified contractor participating in PSE&G’s program. PSE&G does not publish what each measure pays, so “up to $7,500” is as precise as anyone can be. The Whole Home Energy Assessment itself is free for any PSE&G gas or electric customer, once a year.

Rockland Electric Whole Home Energy Solutions offers up to $7,500 in rebates plus interest-free financing, typically over seven to ten years. Every project must include at least attic air sealing and an attic insulation upgrade, and the work must be done by a BPI-certified contractor participating in the program. Rockland Electric’s home energy assessment is free for its residential customers.

Two no-cost programs sit under those. PSE&G Home Weatherization and Rockland Electric Home Weatherization install insulation, air sealing and duct sealing at no cost for income-qualified households (for PSE&G, above 250% and below 400% of the federal poverty level). New Jersey Comfort Partners does the same at or below 250% of the federal poverty guidelines, for example $82,500 for a family of four; homes heated with oil or propane are referred to the state weatherization office instead.

The New Jersey IRA Home Energy Rebates have not launched. The state’s own page says “under development,” and when they do open they are aimed at multifamily buildings and at Comfort Partners households, not at a general homeowner insulation rebate. Do not count on them. The federal 25C credit is gone in New Jersey exactly as it is in New York. Town by town detail is on the Bergen County page.

We are in New Rochelle, NY, and work across Westchester, Fairfield and Bergen
counties. We walk the attic, the basement and the crawl space and price the work.
Whether a program pays toward it is the program’s decision, under its own
contractor and eligibility rules, so check with the program before the work
starts. No charge for the estimate.

Call 914-554-2289. Open 8am–8pm, seven days.