New York is putting serious money behind a home upgrade that could help residents cut utility bills and stay comfortable year-round.

According to a report from Democrat and Chronicle, the state plans to direct $150 million toward wider heat pump adoption in smaller residential properties. New York officials say the funds are part of an effort to make lower-income households more comfortable. 

Heat pumps can both heat and cool a home by moving heat rather than generating it the way traditional fossil fuel-powered systems do. Because of that, they are often far more energy efficient than older equipment.

By focusing on small residential buildings, the state is targeting the kinds of properties where many New Yorkers live, and that can be costly to maintain and difficult to keep comfortable during extreme weather periods.

For residents, one of the biggest benefits of upgrading to a heat pump is the potentially lower energy costs over time. Heating and cooling account for a large share of household utility bills, and efficient electric systems can reduce monthly expenses compared to aging equipment.

To see how much you can save on energy costs by upgrading your heating and cooling, connect with the experts at EnergySage. Its HVAC marketplace can help you understand the best options for your home and budget and compare quotes from vetted installers. 

There are public health benefits as well. Replacing older systems can improve indoor comfort during dangerous heat waves and cold snaps while reducing the pollution that comes from burning fossil fuels inside homes. That can be especially meaningful for children, older adults, and anyone dealing with respiratory issues.

The investment could also help property owners keep smaller buildings in better condition without relying on outdated HVAC systems that are expensive to repair and inefficient to run. In a tight housing market, preserving existing homes is an important part of the affordability conversation.

And while New York's housing crisis will not be solved by HVAC upgrades alone, lowering the cost of living in a home can still make a meaningful difference for everyday residents.

For homeowners and small property owners, the $150 million in funds could create an opportunity to replace old HVAC setups with newer systems that provide both heating and air conditioning in one package. The result can be lower maintenance needs, improved comfort, and less wasted energy.

"By investing in modern, energy-efficient heat pump technology for homeowners and small buildings, we are lowering utility costs, reducing harmful emissions and ensuring more New Yorkers can live in safe, comfortable and climate-friendly homes," Gov. Kathy Hochul said in a statement.

New York's plan reflects a growing shift toward treating cleaner home technology as both a climate and housing solution. For residents facing high utility bills, outdated equipment, and increasingly extreme temperatures, the funding could offer meaningful financial relief and improved home comfort.

Although these grants will be limited to eligible New York residents, homeowners across the country can save significant money on utility bills by upgrading to efficient HVAC systems. 

Check out these free EnergySage tools to find the most efficient heating and cooling option for your home. 

And, if you're not ready to pay upfront, Palmetto, another company, offers $0-down HVAC leases that can reduce your energy costs by up to 50%. 

Its plans start as low as $99 a month and include 12 years of free maintenance. 

For more targeted heating and cooling, Merino offers ultra-efficient room-by-room HVAC units that cost a fraction of the price of whole-home alternatives while only taking an hour to install. 

Plus, if you're looking to boost your savings even further, consider pairing your efficient electric appliances with solar panels. To find the best solar panel system based on your budget, check out the free solar resources from EnergySage. 

By consulting with EnergySage experts, homeowners can save as much as $10,000 on the price of installations and purchases. 

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.