Long Island Oil to Heat Pump Conversion: Off Oil, All Electric
For decades, the only way off heating oil on Long Island was a natural gas conversion, and only if the gas main happened to run down your street. Cold-climate heat pumps changed that. Today's equipment delivers full heating capacity at 5°F, runs to 13 below zero, cools your whole house in summer from the same system, and qualifies for the largest rebates PSEG Long Island has ever offered. No gas main required, no oil truck ever again.
All Island Comfort runs the conversion as one turn-key project. We do the Manual J heat-loss calculation the rebate requires, install the cold-climate heat pump or ductless system, remove or abandon the old oil tank with county closure paperwork, coordinate any electrical work, submit the PSEG Home Comfort rebate, and enroll you in the Rate 580 discounted winter electric rate. Family-owned in Wading River since 2004.
- Whole-Home Cold-Climate Heat Pump Conversion
- Ducted Heat Pump Systems (Existing or New Ductwork)
- Ductless Mini-Split Multi-Zone Systems
- Slim Ceiling Cassettes & Floor Consoles
- Dual-Fuel Systems (Oil Boiler Kept as Backup)
- Manual J Heat-Loss Calculation on Every Job
- Oil Tank Removal or Abandonment + Closure Certificate
- Heat Pump Water Heater Add-Ons
- Electrical Panel Upgrade Coordination
- PSEG Rebate, EmPower+ & Rate 580 Paperwork
Call 631-591-2289 for a free in-home conversion estimate, or request a quote online.
Free In-Home Conversion Estimate
Real numbers in writing: equipment options, rebate tier you qualify for, projected fuel savings vs your actual oil usage, tank removal, and electrical scope. No high-pressure pitch, ever.
Call 631-591-2289Why Convert from Oil to a Heat Pump on Long Island?
The case is strongest for oil-heated homes, and we'll tell you honestly when it isn't the right move. Here's what's driving Long Island conversions:
- Oil Is Expensive: Long Island heating oil has averaged around $5 per gallon, with full-service contracts higher. A home burning 800-1,000 gallons a year spends $4,000-$5,000 on heat alone. A cold-climate heat pump typically cuts that 25-50%.
- Rate 580 Winter Discount: Heat pump homes qualify for PSEG's Rate 580, roughly 40% off delivery charges on winter usage above 400 kWh a month, worth an estimated $400-$800 per heating season on top of the fuel savings.
- Cooling Comes Free: The same system replaces window units or an aging central AC. One system, year-round comfort.
- No More Oil Logistics: No deliveries, no winter price spikes, no burner cleanings, no running out at 2 am in January.
- Tank Liability Goes Away: Removing the oil tank eliminates leak risk, insurance surcharges, and a common sticking point at resale.
- Where NY Is Headed: Under the state's climate law, new construction is going all-electric and incentive money flows toward heat pumps, not fossil equipment. A converted home is ahead of the curve, not chasing it.
Rebates & Incentives: What's Real in 2026
Heat pump incentives changed significantly heading into 2026, and plenty of websites are still advertising money that no longer exists. Here's the accurate picture, and we complete every application as part of the project:
- PSEG Whole-Home Rebate — $4,000: Flat rebate for a qualifying whole-home cold-climate heat pump at market rate, through PSEG Long Island's Home Comfort program.
- $5,000 Tier: For homes in designated disadvantaged communities and for moderate-income households (under 80% of area median income).
- $7,500 Tier: For income-qualified low-income households.
- Rate 580 Heat Pump Rate: Roughly 40% off delivery charges on usage above 400 kWh/month, October through May. We handle enrollment.
- NYSERDA EmPower+: Income-qualified households can access up to $10,000 in no-cost improvements plus federal HEAR heat pump funding, an alternative pathway we'll compare against the PSEG rebate for you.
- Federal Tax Credit — Ended: The Section 25C credit (up to $2,000) expired for installations after December 31, 2025. We won't sell you on money that isn't there, and you should question any contractor who does.
Important fine print we manage for you: the whole-home rebate requires equipment from the NEEP cold-climate product list, sizing to 100-120% of a real Manual J load calculation, and installation by an enrolled Home Comfort Partner contractor. A handshake install forfeits the entire rebate.
"We were burning about 900 gallons a year in a 1960s ranch with baseboard heat. They installed a Mitsubishi Hyper-Heat system, pulled the basement oil tank, and did every piece of the PSEG paperwork. First winter was all-electric, the house held 70 degrees through a single-digit cold snap, and we finally have real AC upstairs."
Cold-Climate Equipment: What Goes In
"Heat pump" covers a wide range of hardware, and Long Island's housing stock, mostly 1950s-70s capes, ranches, and splits with hydronic baseboard and no ductwork, shapes what we recommend:
Ductless Mini-Split Systems
The workhorse of Long Island conversions. One or more outdoor units feed wall units, slim ceiling cassettes, or floor consoles in each zone, no ductwork needed, room-by-room control included. Ideal for baseboard-heated homes.
Ducted Cold-Climate Heat Pumps
If you have ducts from a furnace or central AC, a ducted cold-climate heat pump drops into the existing distribution for whole-home heating and cooling that looks and feels like what you're used to. Compact ducted air handlers can also be hidden in attics or closets for homes without full ductwork.
The Brands and What They Do in the Cold
We install NEEP-listed cold-climate equipment: Mitsubishi Hyper-Heating (H2i) with 100% rated capacity at 5°F and operation to -13°F, plus comparable cold-climate lines from Daikin, Fujitsu (XLTH), Bosch, LG, and Carrier. Long Island's design temperature is only around 11-15°F, so this equipment covers the whole season without electric-resistance strips in most homes.
Dual-Fuel: Keeping the Boiler as Backup
Some homeowners want the oil boiler kept as a safety net. A dual-fuel setup lets the heat pump carry the vast majority of the season while the boiler covers deep cold. It's a legitimate option, but it changes rebate eligibility and keeps tank and service costs alive, so we lay out both paths honestly at the estimate.
Coastal Protection
Salt air is hard on outdoor coils. For homes near the Sound or the South Shore we spec coastal-rated coil coatings, elevate the outdoor unit above snow and salt spray, and set a rinse schedule, details that protect both the equipment and the manufacturer's warranty.
The Conversion Process: Six Steps
Here's exactly what an All Island Comfort oil-to-heat-pump conversion looks like, start to finish:
- 1Free In-Home Estimate & Manual J
We measure the house and run a real heat-loss calculation, required for the rebate and the only honest way to size a heat pump. You get written options: ductless, ducted, or dual-fuel, with the rebate tier you qualify for.
- 2Rebate & Income-Tier Paperwork
We prepare the PSEG Home Comfort application, or the EmPower+ pathway if you income-qualify for more money there, and line up financing if you'd rather spread the cost.
- 3Permits & Electrical Prep
Town building and electrical permits pulled and tracked. If your 100-amp panel needs a 200-amp upgrade, we coordinate it, and EmPower+ can fund panel work for income-qualified households.
- 4Installation
Ductless systems typically go in over 1 to 3 days; ducted retrofits run 3 to 5. Outdoor units are set on proper stands, linesets run cleanly, and every zone is commissioned and verified.
- 5Oil Tank & Old Equipment
The oil tank is pumped, cleaned, and removed or abandoned with the county closure certificate filed, the document buyers and attorneys ask for at resale. The boiler comes out, or stays wired as backup if you chose dual-fuel.
- 6Commissioning & Rate 580
Full system commissioning and walk-through, rebate submission, and Rate 580 enrollment so your winter electric rate reflects the new equipment. You're left with a folder of permits, warranties, and closure documents.
Cost Factors for a Long Island Conversion
Most whole-home conversions land between $12,000 and $18,000 installed before rebates, with the PSEG rebate bringing typical net cost to roughly $7,000-$16,000 depending on your tier. What moves the number:
- Ductless vs Ducted vs Dual-Fuel Design
- Number of Zones / Indoor Units
- Equipment Tier & Brand
- Existing Ductwork Condition
- Electrical Panel Capacity (100A vs 200A)
- Oil Tank Type (Above-Ground vs Underground)
- Tank Removal vs Abandonment-in-Place
- Heat Pump Water Heater Add-On
- Coastal-Rated Equipment Options
- Permits & Inspection Fees
Wondering whether gas would be cheaper for your street? If the main is there, sometimes it is, and we do oil-to-gas conversions too. We'll show you both side-by-side with real numbers rather than steering you to either one.
"No gas main on our block, so it was oil forever or a heat pump. They put in a four-zone ductless system, took the underground tank out with all the paperwork, and got us the PSEG rebate and the winter rate. Between the oil we're not buying and the discount, the payback math actually works."
Why Long Island Chooses Us for Oil-to-Heat-Pump Conversion
A heat pump conversion done badly, undersized equipment, no load calculation, missed rebate deadlines, gives the technology a bad name it doesn't deserve. Long Island homeowners pick All Island Comfort because:
- Family-Owned in Wading River Since 2004
- One Contractor for the Entire Project
- Real Manual J Calculations on Every Sizing
- NEEP-Listed Cold-Climate Equipment Only
- Oil Tank Removal & County Paperwork Handled
- PSEG Rebate & Rate 580 Enrollment Submitted for You
- Honest Advice, Including When Gas or Oil Still Wins
- Up-Front Pricing in Writing
Related Long Island Services
Conversions are multi-service projects by nature. The pieces customers commonly book together: