Last August marked a landmark step in the fight against climate change as Congress passed the Inflation Reduction Act, a law that directs substantial federal spending toward investments in clean energy production.
The legislation builds on the administration’s Bipartisan Infrastructure Law (also referred to as the Infrastructure Investment and Jobs Act of 2021) and offers $400 billion in tax incentives aimed at making clean energy investments more accessible for all.
While the law was drafted at a federal level, its implementation will be state-specific, with many states offering residents the opportunity to apply for additional financial incentives.
For instance, New York residents can qualify for no-cost weatherization, HVAC, and water heater upgrades up to a value of $10,000 per project as well as $2,000 back on the purchase of an electric vehicle!
As a consumer, it's a good opportunity to take a step back and assess your existing energy habits, identify the areas where you may be able to improve and take advantage of the financial support available to you in making those changes a reality.
Feel overwhelming? Don’t worry! That’s what we’re here for. Keep reading for everything you need to know about statewide energy incentives offered in New York.
First things first, before we get into the nitty-gritty details, it's important to understand what types of financial incentives might be available to you.
Tax credits are the first major category, and they work by offsetting the amount you owe on your annual income taxes. Because they’re applied directly to your tax bill, they’re only really beneficial if you owe money come tax time (additional money will not be issued in the form of a refund), but they can offer significant savings in the event that you do have to pay.
Here’s an example…
Say that you owe $5,000 on your annual income taxes, but you qualify for a tax credit worth $6,000. This credit will reduce your amount owing to zero, but you will not receive the remaining $1,000 back. In some instances, leftover money can be carried over to future years, but this is not always the case.
Under the Inflation Reduction Act, there are three major federal tax credit opportunities worth noting, the Residential Clean Energy Credit, the New and Previously-Owned Clean Vehicle Credit, and the Energy-Efficient Home Improvement Credit.
The second type of financial incentive you’ll want to pay attention to is a tax rebate. Unlike a credit, tax rebates are not dependent on how much you own come tax time and are instead issued directly to your bank account in the form of a refund — kind of like a little thank you for investing in clean energy!
As a consumer, you should be prepared to pay for any upgrades upfront, as rarely are these rebates applied at the time of purchase, but this may change in the coming years as legislation works to further remove barriers to access for lower-income households.
Under the Inflation Reduction Act, there are two key federally-funded rebate opportunities to remember, the Home Energy Performance-Based, Whole House Rebate Program (HOMES), which supports retrofitting homes with improved HVAC and insulation systems, and the High-Efficiency Electric Home Rebate Act (HEEHRA) which offers funding towards home electrification projects.
And finally, the last type of incentive you’ll want to make note of is a grant. Think of them like a rebate — but in reverse!
Instead of having a refund issued to you after making your initial investment, grants are applied for and issued beforehand, *granting* you the finances required to make the purchase up front.
They’re similar to a loan, but better, because grants don’t have to be paid back — win!
Now, as we mentioned earlier, many states will be offering state-specific incentives that can help consumers take their clean energy investments even further — and New York is no exception, with a wide range of opportunities offered for home and lifestyle upgrades like energy-efficient appliances, heat pumps and heat pump water heaters and home solar energy systems.
Below is an overview of the upgrades you may want to consider making and their associated statewide funding opportunities.
Want to know more about the Inflation Reduction Act at a federal level? Click here!
If you’re stuck on where to start when it comes to improving your energy habits, an energy audit is a great place to begin! They’re an opportunity to reflect on your current energy use, professionally assess areas where you can improve and make a plan to upgrade the things that will benefit you, your home, and your energy bill the most.
During a home energy audit, a licensed auditor will come to your residence to conduct an in-person walkthrough, analyzing each room’s energy use and effectiveness, asking questions about your consumption habits and offering insights on where you can save power and money.
Before your audit, ask yourself a few questions about your current energy use. The U.S. Department of Energy recommends prompts like:
Once your audit is complete, your auditor will provide you with a written report that outlines all of the areas where you can improve — sort of like a how-to guide for a more energy-friendly lifestyle!
The New York State Energy Research and Development Authority (NYSERDA) provides a range of no-cost energy audit opportunities for consumers of all income levels.
Low- to moderate-income owners and renters can access a free energy assessment through the Empower+ program, while high-income earners can book a no-cost audit through a participating contractor in their area.
Multifamily Buildings Low-Carbon Capital Planning Support is a cost-share incentive offered through NYSERDA’s Flexible Technical Assistance (FlexTech) program.
The incentive supports owners of multifamily properties in implementing energy-efficient low-carbon measures by sharing the costs associated with conducting a clean energy analysis of their space — focusing on opportunities for electrification and electrification-readiness upgrades.
The results of the study provide property owners with a roadmap for upgrades over time, helping to lower operating expenses, enhance building efficiency and improve tenant comfort in the long term.
Qualifying building-specific studies will receive 75 percent of their total study costs back with a project cap equalling 10 percent of the building's annual energy expenditure, up to $500,000.
For multifamily buildings with annual energy expenses under $100,000, this 10 percent project cap does not apply. Instead, buildings in this category will receive funding up to $10,000 or 75 percent of their total study costs, whichever value is less.
In order to qualify for cost-share support, individual multifamily buildings must meet the following eligibility requirements.
You can find out more about Multifamily Buildings Low-Carbon Capital Planning Support by clicking here.
Poor insulation and leaky doors and windows can have a major impact on your monthly energy bill, as your home’s heating and cooling system is forced to work twice as hard trying to regulate temperature while continuously losing warm and cold air.
Fortunately, some simple upgrades to your home’s sealing and insulation can help save up to 80 percent of the temperature-controlled air you would otherwise lose, and New York offers quite a few incentives that make these weatherization upgrades more accessible.
Here are a few opportunities you should consider taking advantage of.
The Weatherization Assistance Program (WAP) is a federally-funded program offered through the U.S. Department of Energy that helps low-income homeowners and renters reduce their energy usage through a variety of no-cost weatherization and energy-efficient home improvements, including the repair or replacement of windows and doors and the installation of window film, awnings, solar screens, insulation and more.
Qualification for the fully-funded improvements depends on your household's average monthly income, with the guidelines for 2023 outlined in the chart below.
You can learn more about the Weatherization Assistance Program (WAP) by clicking here.
The Comfort Home program is operated by New York State and provides homeowners with sealing and insulation incentives valued between $1,000-$4,000.
In order to qualify, you must own or rent a single- or multi-family home with four units or less and have an income equal to or greater than the documented guidelines for your area. Find out where your household income falls by clicking here.
The process begins with a free consultation, where a licensed contractor will assess your space and offer recommendations on which Comfort Home Load-Reduction Package is right for you. These packages cover improvements like air leak sealing, insulation upgrades and the addition of high-performance windows.
Your contractor will also provide details on heat pump options that may qualify you for additional rebate opportunities if you complete the installation within 24 months of your Comfort Home Load-Reduction Package.
The rebate value you receive depends on the type of upgrades being made. Here’s a quick breakdown of the three Comfort Home Load-Reduction Packages available.
You can find out more about the Comfort Home Progam by clicking here.
NYSERDA’s Empower+ program is aimed at supporting low- and moderate-income homeowners and renters through incentives that help reduce the expenses of select residential energy upgrades to little or no cost.
In order to qualify for the program, a household must meet at least one of the following criteria:
You can find out if your household income qualifies by clicking here.
In terms of weatherization improvements, qualifying low-income, single-family owners and renters (those making 60 percent or less than the state/area median income) are eligible to receive no-cost attic, wall, and rim joist insulation, mobile-home underbelly insulation and/or air-sealing improvements, with available project funds capped at $10,000 per household.
Comparatively, moderate-income, single-family homeowners and renters (those making 60-80 percent of the state/area median income level) are eligible to receive a discount of 50 percent, up to a value of $5,000, on these same improvements.
For low-income owners and renters of multifamily, 2-4 unit buildings, project funding is capped at $10,000 for the initial unit with a bonus incentive of $5,000 available per additional income-eligible unit. And for those within the moderate-income bracket, multifamily project funding is capped at $5,000 initially, with an additional $2,500 available for any further income-qualified units.
Find out more about NYSERDA’s Empower+ program by clicking here.
The New York State Multifamily Energy Efficiency Program (AMEEP) is an incentive offered through NYSERDA and the Joint Utilities of New York, providing funding for energy-efficient upgrades in affordable multifamily residences of 5 units or more.
The program offers a comprehensive and non-comprehensive pathway to funding, with comprehensive savings based on a tiered point system where different upgrades are valued at different point levels. Property owners must total the points associated with the various upgrades they want to make to determine which incentive tier they fall within.
In terms of weatherization upgrades, the program covers the following improvements.
Property upgrades must reach a minimum total of 100 points to reach Tier 1 and at least 150 points to reach Tier 2, with incentive values differing depending on your utility provider.
For upstate properties that are customers of National Fuel Gas, NYSEG, RG&E, National Grid in the Niagara Mohawk region, Central Hudson or Orange & Rockland, the incentives are as follows.
For downstate customers of Con Edison and the National Grid in NYC and Long Island, the incentives available are outlined below.
The program also offers a non-comprehensive pathway, ideal for projects that can’t meet the 100-point minimum for Tier 1 incentives. In this pathway, incentives are structured per upgrade, with rebate values dependent on the upgrades being made and/or the degree of energy savings they offer.
You can find out more about the program and non-comprehensive incentives available for downstate multifamily properties by clicking here and upstate properties by clicking here.
Upgrading your home's HVAC system can offer improved comfort and better air quality, keeping you and your family happy while simultaneously offering some major energy bill savings along the way.
These days, heat pump devices are quickly becoming the new residential standard, providing a dual heating and cooling solution that is cleaner, safer and more efficient than traditional HVAC systems.
Fortunately for residents of New York, there are a variety of tools and state funding initiatives available that are making it easier to make the switch to more efficient systems. Here are three you’ll want to know about.
While NYSERDA’s Empower+ program focuses first and foremost on core improvements related to air sealing and insulation, properties that have already made these upgrades may qualify for funding towards additional improvements, such as the installation of a cold climate air source heat pump system or high-efficiency gas heating upgrades.
As a reminder, in order to qualify for Empower+ funding, a household must meet at least one of the following criteria:
OR
OR
If eligible, low-income, single-family homeowners and renters can receive no-cost heat pump or high-efficiency gas heating upgrades, with total project funding capped at $10,000, while moderate-income consumers qualify for a 50 percent discount on these improvements, up to a total value of $5,000 per project.
For low-income multifamily building owners and renters (in properties with 2-4 units), project funding is capped at $10,000 initially, with $5,000 available for each additional income-qualifying unit. And for moderate-income owners and renters of multifamily buildings, initial funding is capped at $5,000 for the first unit, with $2,500 available per additional eligible dwelling.
You can learn more about NYSERDA’s Empower+ program by clicking here.
NYS Clean Heat is a community-focused, statewide initiative designed to increase education about clean heating and cooling systems, promote adoption, and connect homeowners with applicable rebates and financing programs.
While it is not directly an incentive in and of itself, it does offer a valuable tool in helping consumers to better understand the funding options available to them when upgrading to an efficient home heat pump system.
Simply input your address, and the website will offer a consolidated list of the funding and resources available to you in your area to assist with your home heating improvements. This includes statewide, local and utility-specific opportunities.
Click here to access the tool and find out what incentives are available to you!
Looking for a contractor? They have a tool for that too! Find a licensed contractor to assist you with your HVAC upgrades in New York by clicking here.
Now, as we mentioned earlier, the New York State Affordable Multifamily Energy Efficiency Program (AMEEP) offers both comprehensive and non-comprehensive pathways toward making multifamily properties more energy-efficient.
In addition to air sealing, window and insulation upgrades, the program covers a wide range of improvements related to residential HVAC systems. For the comprehensive pathway, you can find a list of available heating, cooling and ventilation upgrades and their associated points outlined in the chart below.
As a reminder, total property upgrades must reach a minimum of 100 points to qualify for Tier 1 of the comprehensive pathway and a minimum of 150 points to access Tier 2, with incentive values differing depending on where you are located within the state.
You can find the incentive values for upstate properties (those who are customers of National Fuel Gas, NYSEG, RG&E, National Grid in the Niagara Mohawk region, Central Hudson or Orange & Rockland) in the following chart.
For downstate customers of Con Edison and the National Grid in NYC and Long Island, the available incentives can be found below.
Only looking to make a one-off upgrade? The non-comprehensive pathway may be the fit for you! You can find a complete list of non-comprehensive incentives related to residential HVAC systems for downstate multifamily properties by clicking here and upstate properties through the link here.
Did you know that for most families, water heating accounts for nearly ¼ of monthly energy usage? It’s true! In fact, the average household spends roughly $400-600 each year on water heating alone — yikes!
The good news is, upgrading to a more efficient water heating system, like an Energy Star heat pump water heater, can save you nearly $300 on annual utility bills — and the state of New York offers a few different incentives that can help you save on the initial investment. Make note of the following opportunities!
So far, we’ve established that NYSERDA’s Empower+ program supports improvements related to home sealing and insulation as well as high-efficiency gas and heat pump home heating upgrades, but the funding also covers improvements to residential water heating systems too!
Once again, in order to qualify for funding, a household must meet at least one of the following criteria:
OR
OR
Similar to HVAC upgrades, in order to be eligible for water heating improvements, your home must have already completed any required core upgrades related to sealing and insulation.
If eligible, contractors may recommend the installation of a heat pump water heating tank, and low-income, single-family households can receive the upgrade at no cost, up to a value of $10,000. Comparatively, moderate-income homeowners and renters can receive a 50 percent discount on the improvements, with total expenses capped at $5,000.
For low-income multifamily building owners and renters in properties with 2-4 units, project funding is capped at $10,000 initially, with $5,000 available per additional income-qualifying unit. For moderate-income multifamily renters and owners, initial funding is capped at $5,000, with $2,500 available for each additional eligible unit participating.
It’s also worth noting that this upgrade can be combined with other improvements eligible under NYSERDA’s Empower+ program, so depending on cost, it may be possible to take advantage of multiple initiatives (like air sealing and HVAC improvements) under one project.
You can learn more about the program, including how to apply, by clicking here.
As we’ve already established, the New York State Affordable Multifamily Energy Efficiency Program (AMEEP) supports multifamily property owners of buildings with five units or more in making energy improvements related to HVAC, home sealing and insulation — but that’s not all that it covers.
Within the program’s comprehensive pathway, eligible property owners can take advantage of the following funding incentives related to water heating.
As a reminder, buildings must meet a minimum of 100 points to qualify for Tier 1 of the program’s comprehensive pathway and 150 points to reach Tier 2, which means the above-mentioned water heating upgrades will need to be combined with other eligible home energy improvements in order to qualify.
Once eligible for the comprehensive pathway, customers of National Fuel Gas, NYSEG, RG&E, National Grid in the Niagara Mohawk region, Central Hudson or Orange & Rockland in New York’s upstate region can take advantage of the following incentives.
For those located downstate (customers of Con Edison and the National Grid in NYC and Long Island), incentive values are slightly elevated.
Alternatively, property owners can take advantage of the program’s non-comprehensive pathway to access savings on water heating upgrades, with incentives instead based per upgrade rather than on a points-based system.
A list of additional upgrades that can help you meet Tier 1 and Tier 2 incentives, as well as available non-comprehensive pathway upgrades related to water heating, can be found at the following links:
Energy-efficient appliances, like refrigerators, freezers, dishwashers and laundry machines, are another great consideration if you're looking to reduce your energy consumption and save on your monthly utility bill.
In general, you’ll want to look for the Energy Star label when making any new appliance purchases. Energy Star-certified products use less energy than traditional home appliances without compromising on effectiveness, saving you money while cutting back on harmful greenhouse gas emissions that can damage our planet. In order to qualify, appliances must meet a set of stringent energy efficiency specifications set forward by the U.S. Department of Energy and the U.S. Environmental Protection Agency.
The great news is, under programs like Empower+ and the New York State Affordable Multifamily Energy Efficiency Program, single- and multifamily households of all sizes can save on their energy-efficient appliance upgrades — here’s what you’ll want to keep in mind.
Through Empower+ funding incentives, eligible households can replace their inefficient refrigerator and/or freezer units with more efficient alternatives at no cost as part of the program’s core energy-efficiency improvements.
In order to qualify, households must once again meet the following criteria listed below:
If eligible, low-income, single-family homeowners and renters (those making 60 percent or less than their area’s median income) can receive up to $10,000 towards their upgrades, while moderate-income households (those making 60-80 percent of their area’s median income) can receive a 50 percent discount on fridge and freezer upgrades (alongside any other Empower+ upgrades), up to a value of $5,000.
For multifamily households, the incentives are slightly different. Low-income multifamily property owners and renters of buildings with 2-4 units will be eligible for $10,000 worth of upgrades on the first eligible unit, with $5,000 available for each additional income-qualified dwelling, while moderate-income multifamily households will receive $5,000 for the initial unit and $2,500 available for each remaining eligible unit.
Further details on NYSERDA’s EmPower+ program can be found here.
Additionally, multifamily property owners can qualify for funding towards energy-efficient appliance and lighting upgrades through the New York State Affordable Multifamily Energy Efficiency Program.
Through the program’s comprehensive pathway, eligible upgrades can receive the following points toward qualifying for Tier 1 and Tier 2 incentives.
Due to the low point values on these upgrades, property owners will need to combine these improvements with other incentivized upgrades offered within the program in order to qualify for the comprehensive pathway. As a reminder, properties will need a total of 100 points in upgrades to reach Tier 1 and 150 points to access Tier 2.
Once eligible, upstate properties serviced by National Fuel Gas, NYSEG, RG&E, National Grid in the Niagara Mohawk region, Central Hudson or Orange & Rockland can receive the following funding opportunities for each eligible unit in their building.
For downstate customers of Con Edison and the National Grid in NYC and Long Island, qualifying properties can receive the following funding values.
Of course, if you’re not looking to make additional upgrades that would qualify you for the comprehensive pathway, the program’s non-comprehensive pathway still offers incentives on a per-upgrade basis that can help you save.
You can find a complete list of incentives and their non-comprehensive pathway values, as well as additional comprehensive pathway upgrades you may want to consider through the following links:
Consumers can also find additional rebate incentives on Energy Star home appliances by using Energy Star’s Rebate Finder.
To find rebates available to you, simply input your zip code into the search bar, and the Rebate Finder tool will provide you with a comprehensive list of rebates and special offers on Energy Star-certified products offered by Energy Star partners near you — easy!
You can access the tool by visiting the ENERGY STAR website here.
Investing in solar energy has a multitude of benefits for homeowners and renters alike. It can save the average household up to $300 every year on electricity expenses, offer stability through periods of shifting electrical rates, and provide backup power in the event of an outage or other emergency scenario — all while contributing to a greener, cleaner planet for all.
The downside, though, is home solar energy systems can cost between $3,500 and $35,000, depending on the type of panels you choose to purchase (ouch!). Luckily, there are quite a few statewide funding incentives that can make investing in solar more accessible to New York residents.
Keep the following in mind if you’re looking to make the switch to sun-powered energy in your home.
NYSERDA’s NY-Sun program provides financial incentives directly to solar contractors aimed at helping to reduce the costs of solar investments for New York residents.
Incentive opportunities vary throughout the state, and households making 80 percent or less than their area’s median income level may qualify for additional solar incentives if they’re willing to make further low-cost efficiency upgrades and complete an Incentive Eligibility Application.
The best way to find out what options are available to you is to reach out to an NYSERDA-approved solar contractor and have them provide you with more details specific to your residence. You can read more about the NY-Sun program by clicking here.
Additionally, residents may qualify for the New York State Solar Energy System Equipment Tax Credit, which offers 25 percent back on the one-time purchase or lease of a home solar panel system at a homeowner or renter’s primary residence, up to a value of $5,000.
It’s important to note that this state-offered tax credit can be combined with the Inflation Reduction Act's federal Residential Clean Energy Credit, which offers an additional 30 percent in savings on home solar energy systems, with an uncapped value on total purchase price — now that’s a win!
The even better news? Any unused state credit in excess of the taxes you owe can be carried through and applied on tax bills over the next five years — double win!
Learn more about the New York State Solar Energy System Equipment Tax Credit by clicking here.
Solar for All is a utility bill assistance program offered by New York State that’s focused on providing residents who may not be able to access clean energy directly with an opportunity to support local solar initiatives and save on their utilities in the process.
While the program is currently fully subscribed for customers located in the National Grid jurisdiction, it is still available to customers of Central Hudson, NYSEG (in Chenango, Otsego, Sullivan and Delaware counties only) and Orange & Rockland, with a waitlist available for National Grid customers who wish to be considered for participation in the future.
You may be eligible to join the program if you meet some or all of the criteria outlined below (you can check your eligibility more closely by clicking here).
If eligible, you can save on your electrical bill by taking advantage of the energy produced by nearby community solar farms without any upfront costs or installation fees. Typical savings are around $5-$15 each month, applied to your bill in the form of credit — sign us up!
You can find out more about New York’s Solar For All program by clicking here.
Under RP-487 of the New York State Real Property Tax Exemption, homeowners can save on the qualified installation of a solar, wind or other clean energy system through an exemption on their property tax increases. Here’s a quick breakdown of how it works.
Home solar energy systems increase your property value (woohoo!), but with an increased property value comes increased property taxes (boo!). Luckily, though, for property owners who install eligible clean energy technologies, the New York State Real Property Tax Exemption puts a pause on any property tax increases related to these upgrades for a period of 15 years from installation — hello, savings!
You can find out more about the clean energy systems exemption under the New York State Real Property Tax Exemption by clicking here.
The Solar Electric Generating System (SEGS) Tax Abatement offers an equivalent incentive to the New York State Real Property Tax Exemption for homeowners in New York City. It provides homeowners in the city with the chance to deduct 5 percent of the cost of their home solar installation from their property taxes each year, for a period of four years, up to a value of $62,500.00. That’s a total savings of 20 percent on the cost of your home solar installation!
You can find out more about the Solar Electric Generating System (SEGS) Tax Abatement opportunity here.
As of March 2023, there are upwards of 158,000 electric vehicles registered in New York City’s metro region — a number that sounds great until you consider the fact that it’s still less than 1 percent of the region’s total population.
Residents are often deterred by limited parking, a lack of charging infrastructure, and expensive vehicle costs, and as a result, miss out on the many benefits of electric vehicles like fuel savings, lower maintenance costs and reduced emissions.
Fortunately, in 2023, consumers can now take advantage of state-funded rebate opportunities to help make clean vehicle costs more affordable while work is being done to make charging points more accessible to those living in densely populated city regions.
Here are the opportunities you’ll want to keep in mind.
The Charge NY Drive Clean Rebate provides residents buying or leasing a new electric or hybrid electric vehicle with a rebate of up to $2,000 on their purchase.
The Drive Clean Rebate can be combined with the Inflation Reduction Act’s New Clean Vehicle Credit which itself has a value of $7,500, making for a total savings of $9,500 — cha-ching!
Currently, there are over 60 qualifying EV models available for purchase, and the rebate can be applied at the point of sale by a local participating dealer for instant savings!
Find out more about the Charge NY Drive Clean Rebate and explore qualifying models by clicking here.
New York's Clean Pass Program allows qualifying low-emission, clean vehicles to utilize the Long Island Expressway HOV lanes, regardless of passenger numbers, by providing eligible applicants with special stickers displayed on the bumpers and rear quarter panels of their electric/hybrid electric vehicle.
It’s a great incentive for drivers looking to invest in clean transportation, saving time on daily commutes and helping avoid traffic headaches. You can learn more about the Clean Pass Program here and apply for a sticker of your own through the Department of Motor Vehicle website here.
Armed with the knowledge of New York's statewide energy incentives, it’s time to start thinking about the next steps!
Take a moment to book your own no-cost energy assessment, find a licensed contractor that can help you with your chosen upgrades, and block off some time to investigate additional incentives that may be available to you locally through both your municipal legislature and utility provider. You’d be surprised at how many local and privately-offered incentives are out there that can help take your clean energy investments even further.
Good luck — and happy saving!
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