Is Geothermal Heating and Cooling Worth It on Long Island?

Short answer: For many East End homes, especially new builds, major renovations and houses replacing oil or propane heat, geothermal can pay off through much lower heating and cooling costs and a long system life. The upfront cost is higher than conventional systems, and the federal tax credit ended for systems placed in service after 2025, so the numbers now depend more on New York State rebates and credits and on your energy use.

How geothermal works

A geothermal (ground-source) heat pump moves heat between your home and the ground through loops of piping buried in vertical wells or horizontal trenches. The ground stays at a fairly steady temperature year-round, so the system can heat in winter and cool in summer using far less energy than burning fuel or running a conventional air conditioner.

Which homes are a good fit?

  • New construction, where loops and ductwork can be planned from the start
  • Whole-house renovations that are already opening walls and replacing systems
  • Homes heated with oil or propane, where fuel savings are largest
  • Lots with space or access for drilling or trenching

Good insulation and air sealing make any heat pump work better, so we often plan insulation upgrades alongside geothermal.

Incentives in 2026

  • Federal: the federal Residential Clean Energy Credit (25D) no longer applies to systems completed after December 31, 2025.
  • NYS Clean Heat: rebates for ground-source heat pumps are offered through PSEG Long Island when a participating contractor installs the system. Amounts depend on system size and whether it heats the whole home.
  • New York State tax credit: New York offers a geothermal energy system credit for a principal residence, claimed on Form IT-267.

Incentive rules change often. Confirm current amounts with PSEG Long Island and your tax advisor before you decide.

Why use an accredited installer?

Loop design, drilling and system sizing make the biggest difference to how well geothermal performs. EBC’s geothermal installers are IGSHPA-accredited. Learn more on our geothermal page.

FAQ

How long do geothermal systems last?

The buried ground loops are designed to last for decades, and the indoor heat pump typically lasts longer than a conventional furnace or air conditioner because it is protected from the weather.

Can geothermal also heat water?

Many systems can pre-heat domestic hot water, which adds to the savings.

Does geothermal work in winter on Long Island?

Yes. Ground temperatures stay fairly stable through the winter, which is what makes geothermal efficient in cold weather.

Talk to EBC

Efficient Building Concepts is a renovation and construction company serving Quogue, Westhampton, Westhampton Beach, Remsenburg, East Quogue and Hampton Bays. Call (631) 909-9191, email info@efficientbuildingconcepts.com or use our contact form.

Call (631) 909-9191Get a Quote