Stay Cozy, Stay Cool

Save Big on Hot Water: PSEG Rebates & Heat Pump Water Heater Installation on Long Island

Get $750 Back and Slash Your Energy Bills by Up to 70%

Living on Long Island means dealing with some of the highest electricity rates in the country. For many local families, heating water is the second-largest expense in the home, right behind heating and cooling the air. But what if you could cut that cost by more than half while getting paid to do it?


At Polar Bear Air, we are proud to partner with PSEG to offer Long Island homeowners the most energy-efficient water heating technology available today: Heat Pump Water Heaters (HPWH).

For a limited time, PSEG is offering a $750 rebate on eligible ENERGY STAR® certified Heat Pump Water Heaters. Combined with federal tax credits and massive monthly energy savings, there has never been a better time to upgrade your old electric water heater.

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Why Your Old Water Heater is Costing You a Fortune

Most homes on Long Island still rely on standard electric resistance water heaters. These units operate like giant kettles—they use massive amounts of electricity to heat coils inside the tank. While they are simple, they are incredibly inefficient. For every unit of electricity they consume, they produce only one unit of heat energy. In an area like Nassau or Suffolk County, where electricity prices can fluctuate and peak during high-demand seasons, an old electric water heater acts like a slow leak in your wallet, draining hundreds of dollars unnecessarily every year.


The Heat Pump Advantage: Smarter, Not Harder

A Heat Pump Water Heater works differently. Instead of generating heat directly, it moves heat.


Think of it like a refrigerator running in reverse. While a fridge pulls heat out of the box to keep your food cold, a Heat Pump Water Heater pulls heat from the surrounding air in your basement or utility room and transfers it into the water tank.


Because moving heat is much easier than creating it, these units are up to 300% efficient. That means for every $1 you spend on electricity, you get $3 worth of hot water.

The Financial Breakdown: Rebates, Credits, and ROI

The PSEG Rebate:

$750 Cash Back

As an active PSEG residential customer, you are eligible for a $750 rebate when you install a qualifying ENERGY STAR® Heat Pump Water Heater.

  • Eligibility: Must be an ENERGY STAR® certified model.
  • Process: Polar Bear Air will provide you with the professional invoice and model number needed to submit your claim online at homeenergy.pseg.com.

Federal Tax Credits:

Up to $2,000

Under the Inflation Reduction Act, homeowners can claim a tax credit of 30% of the project cost, up to a maximum of $2,000. This includes both the cost of the unit and the installation labor provided by Polar Bear Air. (Note: Always consult your tax professional to confirm your specific eligibility.)

Annual Energy Savings:

~$550 Per Year

According to ENERGY STAR® estimates, a typical family of four saves approximately $550 per year on their electric bills by switching to a heat pump model. Over the 10-15 year life of the unit, that is over $5,000 in pure savings staying in your pocket rather than going to the utility company.

Why Heat Pump Water Heaters are Perfect for Long Island Homes


Beyond the money, there is a hidden benefit specifically for Long Island homes: Dehumidification. Because the Heat Pump Water Heater pulls heat from the air, it also pulls moisture out of the air.

  • Summer Comfort: Long Island summers are notoriously humid. If your water heater is in the basement, this unit runs like a dehumidifier, keeping your basement dry and reducing that "damp" smell without you having to run a separate dehumidifier.
  • Cooler Utility Rooms: The unit exhausts cool, dry air. In the summer, this is a bonus. In the winter, the effect is negligible in a basement, but the dehumidification benefits remain year-round.
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Why Choose Polar Bear Air?

You cannot simply buy these units at a big-box store and plug them in. Heat Pump Water Heaters are sophisticated appliances that require proper sizing, airflow planning, and professional electrical connections. At Polar Bear Air, we have been serving Long Island communities for over 23 years. We are family-owned, operated, and deeply familiar with the specific needs of local homes.

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Our PSEG Partnership

We are not just installers; we are partners in your energy efficiency journey. We stay up to date on PSEG’s changing rebate requirements so you don’t have to. When you hire us, you get:

Correct Sizing

We ensure you get a tank (usually 50, 65, or 80 gallons) that meets your family's hot water demand so you never run out of hot water.

Code Compliance

We handle all plumbing and electrical connections strictly according to New York and local township codes.

Paperwork Assistance

We provide clean, itemized invoices that make your PSEG rebate application smooth and rejection-free.

Frequently Asked Questions (FAQ)

  • Q: Will I run out of hot water with a Heat Pump unit?

    A: No, provided it is sized correctly. These units are "hybrids." They have the heat pump for high efficiency, but they also have backup electric elements (just like a standard water heater) that kick in automatically during times of extremely high hot water demand. You get the efficiency of a heat pump with the reliability of a standard tank.

  • Q: Are they noisy?

    A: They run at about 50 decibels—roughly the hum of a modern refrigerator or a quiet conversation. Since most units are installed in basements or utility closets, most homeowners never notice the sound.

  • Q: Does it make my basement cold?

    A: The unit does exhaust cool air, but in a standard unconditioned basement, the temperature drop is usually very minor (typically 2-4 degrees) and is often welcomed during our hot summers.

  • Q: How long does installation take?

    A: In most cases, Polar Bear Air can remove your old unit and install the new Heat Pump Water Heater in a single day (usually 4–6 hours). We haul away your old tank so you don’t have to worry about disposal.

The Financial Breakdown: Rebates, Credits, and ROI

Step 1:

Free In-Home Assessment

Call us to schedule a visit. We will check your current water heater location to ensure there is adequate airflow (these units need "breathing room" to work efficiently) and check your electrical panel capacity.

Step 2:

Selection & Quote

We will recommend the best ENERGY STAR® model for your home size and water usage. We provide a transparent, upfront quote that includes the unit, labor, parts, and removal of the old tank.

Step 3:

Professional Installation

Our licensed technicians arrive on time, protect your floors, and install the new system. We configure the settings for maximum savings (such as "Hybrid Mode" or "Efficiency Mode") and show you how to use the control panel.

Step 4:

Rebate & Enjoy

We hand you the paperwork. You submit it to PSEG. You enjoy instant hot water and lower electric bills starting the very next month.

lET'S cONNECT

Ready to Upgrade?

Don't wait for your old water heater to leak or fail—emergency replacements often force you to buy whatever is in stock, missing out on rebates and efficiency. Plan ahead and lock in your $750 PSEG rebate today. Contact Polar Bear Air Serving Suffolk & Nassau Counties with Pride.

Call Us Now: (631) 698-4617 | Visit Us: www.polarbearairny.com

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Terms & Conditions: Rebate amounts and eligibility are subject to change by PSEG Long Island at any time. The rebate is available only to residential customers with an active PSEG Long Island electric account. The installed unit must be ENERGY STAR® certified and meet specific Uniform Energy Factor (UEF) requirements. Tax credit eligibility should be verified with a certified tax professional.