What the Law Requires
New York's All-Electric Buildings Act took effect January 1, 2026. If you're building new or doing a major renovation in Westchester, this law affects what heating, cooling, and cooking systems you can install.
The short version: new residential buildings under seven stories can no longer install fossil fuel equipment for heating, hot water, or cooking. That means no new natural gas furnaces, no new oil boilers, and no gas stoves in new construction.
For existing homeowners, the law doesn't force you to rip out your current gas furnace. But if you're planning a gut renovation, an addition, or converting a garage into living space, you may be required to go all-electric.
This guide explains who's affected, what it costs, and what rebates are available to offset the transition.
Who This Affects
Definitely affected: - New single-family home construction (applying for permits after January 1, 2026) - New multi-family buildings under seven stories - Gut renovations that touch HVAC systems - Additions that add new heated square footage
Probably not affected: - Replacing a furnace or boiler in an existing home with like-for-like equipment - Minor renovations that don't require HVAC permits - Kitchen remodels where you keep your existing gas stove
Gray areas: - Converting unheated space (basement, garage, attic) into living area may trigger requirements - Major HVAC work during a renovation could require compliance even if the renovation itself doesn't
When in doubt: Ask your building department. The law is new, and interpretation varies by municipality. Here's who to call: - White Plains Building: (914) 422-1269 - Yonkers Buildings: (914) 377-6500 - New Rochelle Building: (914) 654-2032 - Scarsdale Building: (914) 722-1140
Exemptions and Exceptions
The law includes several exemptions:
Backup generators: You can still install a gas or propane generator for emergency backup power.
Commercial kitchens: Restaurants and commercial food service facilities are exempt.
Critical facilities: Hospitals, emergency shelters, and similar facilities have extended timelines.
Affordable housing: Projects receiving certain public subsidies have delayed compliance dates.
Grid limitations: If the local electric grid can't support the load (rare in Westchester), exemptions may apply.
Permits already filed: If your building permit was submitted before January 1, 2026, you're grandfathered under the old rules even if construction starts later.
What This Means for Your Project
If you're building new: Your heating system will be a heat pump. Your water heater will be a heat pump water heater or electric resistance. Your stove will be induction. Plan for these from the start, including the electrical panel capacity to support them.
If you're doing a major renovation: Ask your architect or contractor whether your project triggers the all-electric requirement. The threshold varies, but generally if you're touching the HVAC system as part of a larger permitted project, you may need to comply.
If you're replacing an old furnace: You're not required to switch to electric. But this is a good time to consider it anyway, because the rebates are substantial (see below). A heat pump that handles heating and cooling can replace both your furnace and your air conditioner in one system.
If you're keeping your gas stove: For existing homes, nobody's coming to take your Viking range. The law affects new installations in new construction and major renovations, not appliance replacements in existing homes.
What Heat Pumps Cost in Westchester
Heat pump costs depend on the type of system and the size of your home. Here's what Westchester homeowners are paying in 2026:
| System Type | Typical Cost | Best For |
|---|---|---|
| Ductless mini-split (single zone) | $3,500 – $7,500 | Adding AC/heat to one room, garages, additions |
| Ductless mini-split (multi-zone, 2-4 heads) | $8,000 – $18,000 | Homes without existing ductwork |
| Ducted air-source heat pump | $12,000 – $25,000 | Homes with existing forced-air ductwork |
| Cold-climate heat pump (Mitsubishi, Fujitsu) | $15,000 – $30,000 | Primary heating in Westchester winters |
| Geothermal heat pump | $25,000 – $50,000+ | Maximum efficiency, requires land for ground loops |
The Electrical Panel Factor
Here's what most people miss: going all-electric often requires an electrical panel upgrade.
A heat pump, heat pump water heater, and induction stove together can draw 60 to 100 amps. Most older Westchester homes have 100-amp or 150-amp panels. That might not be enough.
Panel upgrade costs in Westchester: - 100 to 200-amp upgrade: $1,800 to $4,500 - 200 to 400-amp upgrade: $3,500 to $8,000 - Adding subpanel: $1,200 to $2,500
Factor this into your budget. If your home was built before 1970 (which describes most of Scarsdale, Bronxville, Pelham, and the rivertowns), you probably have a panel that's at or near capacity already.
Before signing any heat pump contract: Have an electrician evaluate your panel capacity. A good HVAC contractor will coordinate this, but not all do.
Rebates and Incentives for 2026
The rebate landscape changed in 2026. The federal Section 25C tax credit that offered up to $2,000 for heat pump installations expired December 31, 2025. That federal incentive is no longer available for equipment installed in 2026.
State and utility programs are now the primary source of rebates.
NYS Clean Heat Program: - NYSEG and RG&E offer rebates up to $1,050 for cold-climate air source heat pumps - Up to $500 for heat pump water heaters - Applied automatically through participating contractors - Check cleanheat.ny.gov for current amounts in your utility territory
EmPower+ (Income-Qualified Households): - Low-income households (under 60% of Area Median Income) can receive up to $10,000 in energy efficiency improvements at no cost - Additional funds available for electrification including heat pumps - Moderate-income households (60-80% AMI) qualify for $4,000 to $6,000 toward heat pumps
Con Edison Rebates: - Additional rebates for Con Ed customers - Can stack with NYSERDA incentives - Check coned.com/rebates for current offerings
The math in 2026: A $20,000 cold-climate heat pump installation might see $1,050 to $5,000 in rebates for most households, bringing net cost to $15,000 to $19,000. Income-qualified households can receive significantly more. The gap with gas or oil systems has narrowed less than it did when federal credits were available, but operating cost savings over 15 to 20 years still favor heat pumps in most cases.
Ask your contractor what rebates they can access before signing any contract.
Do Heat Pumps Actually Work in Westchester Winters?
This is the first question everyone asks. The answer: yes, but you need the right equipment.
Standard heat pumps lose efficiency below 30 degrees and struggle below 20. That's a problem when January temperatures regularly hit single digits in Yorktown Heights and Bedford.
Cold-climate heat pumps (sometimes called hyper-heat or extreme cold models) are designed for this. Brands like Mitsubishi Hyper-Heating, Fujitsu XLTH, and Daikin Aurora work efficiently down to -13°F. They cost more upfront but actually work as primary heat sources in Westchester.
What matters: - Make sure your contractor specifies cold-climate rated equipment - Proper sizing is critical (oversized units short-cycle; undersized units run constantly) - Backup resistance heat should be part of the system for extreme cold snaps
Real-world performance: Westchester homeowners running cold-climate heat pumps report heating bills 20% to 40% lower than oil or propane, with the bonus of included air conditioning. Natural gas is closer to break-even on operating costs, but electricity rates are more stable than gas prices.
Planning Your Project Timeline
If you're planning a project affected by the all-electric law, here's a realistic timeline:
For new construction: - Design phase should include electrical load calculations for all-electric systems from day one - Budget 3 to 6 months longer for permitting as building departments adjust to new requirements - HVAC contractors experienced with heat pumps are booking 2 to 3 months out in Westchester
For major renovations: - Get a preliminary HVAC assessment early in design - Panel upgrade may need to happen before heat pump installation - Some contractors do both; others require coordination with a licensed electrician
For furnace replacement (voluntary switch): - Best time to plan: summer and fall (HVAC contractors are less busy) - Allow 4 to 8 weeks from quote to installation - Rebate processing can take 6 to 12 weeks after installation
If your current system fails in winter: Emergency heat pump installation is possible but expensive. If your oil boiler or gas furnace is 15+ years old, start getting quotes now rather than waiting for a crisis.
Frequently Asked Questions
The Bottom Line
New York's all-electric law is real, and it affects many Westchester building projects starting this year. State rebates through NYSERDA and utility programs help offset costs, though the federal tax credit that expired at the end of 2025 makes the math tighter than it was.
If you're building new, plan for heat pumps from day one. If you're renovating, check with your building department early. If you're replacing an aging furnace, get quotes for both replacement and conversion.
The technology works. Cold-climate heat pumps handle Westchester winters. Income-qualified households can still access substantial rebates. And for new construction, you don't have a choice anyway.
Need an HVAC contractor? We list heat pump specialists across Westchester County.
Alex Colombo is the founder of Westchester AI, a technology consulting firm serving businesses across Westchester County and the tri-state area. When he's not helping local companies modernize their operations, he's researching what home improvement actually costs in the area so homeowners don't walk into quotes blind.