Finding clean energy funds: A Guide to NYSERDA’s incentives and programs

For multi­family building owners in New York City — afford­able or market rate, condo or co-op or rental — energy upgrades are both a matter of compli­ance with Local Law 97 (LL97) and a signif­i­cant finan­cial invest­ment. But building owners and resi­dents don’t have to do it alone — there is help to be found. 

The New York State Energy Research and Development Authority (NYSERDA), a public benefit corpo­ra­tion driving the tran­si­tion to a clean energy economy for the entire state of New York, has devel­oped incen­tives specif­i­cally aimed at navi­gating that tran­si­tion through rebates, grants, subsi­dized engi­neering studies, low-interest financing, and oper­a­tional support programs. 

While NYSERDA designs programs for various building types across the state, many programs are specif­i­cally for multi­family build­ings, which NYSERDA defines as hosting five or more resi­den­tial units, and where the primary building use is residential. 

The combined value of these programs now repre­sents one of the largest pools of public funding avail­able for building modern­iza­tion and emis­sions reduc­tion in New York City. But navi­gating this frag­mented incen­tive land­scape can be diffi­cult for the non-expert. Most of these NYSERDA programs require the help of a regis­tered profes­sional to success­fully apply, and a NYSERDA spokesperson we spoke to recom­mended that building owners utilize the help of qual­i­fied contrac­tors, NYSERDA’s Multifamily Team, or NYS Regional Clean Energy Hubs in deciding which specific program is right for their building. 

Darren Johnson, the Director of Compliance at Argo Real Estate, has become very familiar with NYSERDA’s various incen­tive offer­ings in his various roles in New York City’s clean energy economy. He agrees that the best tool in any building’s toolkit is an expert guide. ​“You need a consul­tant, there’s no way around it,” Johnson told Skylight. ​“That’s how you’re going to be able to maxi­mize the incen­tive dollars you can receive from these programs.”

In the mean­time, however, Skylight has created a guide to serve as an intro­duc­tion to help deci­sion makers in multi­family build­ings navi­gate the various decar­boniza­tion incen­tives available. 

A few notes about this guide’s orga­ni­za­tion: It can be helpful to think about NYSERDA’s different offer­ings as tools to help with various steps in the process of doing a clean energy retrofit, and that’s how we’ve orga­nized the suite of offer­ings here. Technical assis­tance and imple­men­ta­tion programs are aimed at the begin­ning of a project; then financing and utility programs typi­cally assist with imple­men­ta­tion; and finally, full-service programs which provide assis­tance throughout. We’ve also indi­cated whether each program is applic­able to afford­able or market-rate housing.

Technical Assistance Programs

Experts we spoke to agree that NYSERDA assis­tance is espe­cially robust for the work that addresses the thoughtful plan­ning of how to make energy upgrades, which it calls ​“tech­nical assis­tance.” These programs provide funding or incen­tives for the first step towards an energy-effi­ciency construc­tion project: studies, audits, assess­ments, design services, or training sessions to help prepare a future project.

While this plan­ning step may seem prelim­i­nary, Johnson empha­sizes its impor­tance over a project’s lifespan. ​“Being able to put together a plan to think about the different stages [is impor­tant], because there’s so much that goes into being able to do a major retrofit upgrade. You really have to get back to making sure you under­stand your choices.” 

Affordable Solar and Storage Predevelopment and Technical Assistance (PON 3414)

Eligibility: Affordable Housing

This incen­tive addresses barriers to installing solar instal­la­tions on afford­able housing for low- to moderate-income house­holds, and is avail­able to owners, providers, or managers of multi­family regu­lated afford­able housing (which NYSERDA defines here and here) or commu­nity orga­ni­za­tions that provide services to low- to middle-income house­holds (defined here). The program offers up to $200,000 in funding for the pre-devel­op­ment, tech­nical assis­tance, or instal­la­tion of solar panels. Fifth Avenue Committee, an afford­able housing oper­ator in Brooklyn, took advan­tage of the program to get assis­tance in installing solar at several of their prop­er­ties, bene­fit­ting nearly 300 residents. 

FlexTech (PON 4192)

Eligibility: Market-Rate & Affordable Housing

The FlexTech program is NYSERDA’s most popular offering for the multi­family sector; per a NYSERDA spokesperson, in 2025, the program provided an energy audit or assess­ment to approx­i­mately 450 multi­family build­ings, totaling over 50,000 units. The program provides cost sharing to complete an energy study, which provides a holistic under­standing of a building’s energy use and oppor­tu­ni­ties for efficiencies.

The program covers 50 percent to 75 percent of the cost (up to $500,000, depen­dent on housing type) and is avail­able to a range of building types including multi­family, as long as the owner pays into the elec­trical System Benefits Charge (owners would see an ​“SBC” or ​“NYSERDA Clean Energy Fund” listed as a charge on their latest elec­trical bill).

FlexTech studies can help deter­mine such aspects in how to reduce energy bills; which clean energy projects or upgrades would be appro­priate for your building; the creation of a long-term energy plan, and more. The study must focus on energy effi­ciency and carbon reduc­tion, elec­tri­fi­ca­tion, or prepa­ra­tion for elec­tri­fi­ca­tion, and use a program-approved FlexTech Consultant or Independent Service Provider.

“One of the great things about the FlexTech program, [is] it provides assis­tance for those types of studies,” said Johnson, ​“because they can get very expen­sive. These decar­boniza­tion studies are extremely helpful for people to under­stand how to be able to lay this out, and it allows [for] commu­ni­ca­tion to all of the stake­holders. Because other­wise, what happens is — and we’ve seen a lot of build­ings do this — they just throw darts.” 

SAMES (Small Affordable Multifamily Energy Study)

Eligibility: Affordable Housing

This incen­tive provides free energy studies for small- to medium-sized build­ings (50,000 square feet or less, with 5 units or more) that meet NYSERDA’s afford­able housing require­ments. The studies cover in-depth assess­ments of energy systems, iden­ti­fi­ca­tion of energy-saving improve­ments like lighting replace­ments, enve­lope updates, and HVAC upgrades. A NYSERDA spokesperson notes that this is a part of FlexTech that is specific to small afford­able multi­family build­ings only, so contrac­tors who perform the studies are also pre-qual­i­fied FlexTech contractors.

Owner’s Representative Services for Multifamily Buildings (Owner’s Rep) (PON 5899)

Eligibility: Market-Rate & Affordable Housing

Building systems and decar­boniza­tion options are complex topics for building owners, and so NYSERDA created this program to match owners with special­ized, tech­nical experts who will act on behalf of building owners throughout the plan­ning, design, and instal­la­tion process of energy effi­cient upgrades. They can also assist with managing the bid process for contrac­tors, over­seeing construc­tion, and commu­ni­cating with various stakeholders. 

Funding up to $35,000 is avail­able for build­ings that meet at least one of the following criteria: orga­nized as a co-op or condos, located in disad­van­taged commu­ni­ties, contain 50 or more resi­den­tial units, or meet NYSERDA’s guide­lines for afford­able housing.

On-site Energy Manager (PON 3701)

Eligibility: Market-Rate & Affordable Housing

Most multi­family build­ings do not have the finan­cial capacity for an energy project manager who would develop processes that increase energy effi­ciency, lower oper­a­tional costs, reduce main­te­nance time, and future-proof the facility. NYSERDA’s OsEM Program provides funding to share the cost for multi­family build­ings to hire a full-time or part-time on-site energy manager (through NYSERDA’s list of consul­tants here). The program offers a 75% cost share for market-rate build­ings, or 100% cost-share for afford­able buildings.

Johnson points out that having help from a qual­i­fied consul­tant is a must on nearly any retrofit project involving NYSERDA incen­tives — not only because the state agency requires it to submit appli­ca­tions for various programs, but also these experts know best how to plan, predict, and execute these effi­ciency projects for maximum impact. 

Implementation Programs

These programs provide finan­cial assis­tance for the next step in a project, i.e. the actual purchasing, instal­la­tion, or commis­sioning of energy effi­ciency measures. Most of the imple­men­ta­tion programs are intended exclu­sively for afford­able multi­family housing developments. 

REDi: EB — Resilient and Equitable Decarbonization Initiative for Existing Buildings

Eligibility: Affordable Housing

This joint program with the Department of Housing Preservation and Development (HPD) and NYSERDA targets existing multi­family build­ings in New York City that are receiving financing through HPD (espe­cially those currently using oil or elec­tric resis­tance for heating and hot water). The program provides funding to cover the incre­mental construc­tion costs required to elec­trify domestic hot water and space heating, and improve enve­lope performance. 

Funding comes as a match to the HPD subsidy that the building is required to seek, and successful appli­cants will work with a Technical Assistance Provider to design and scope the project. Applicants are encour­aged to seek FlexTech funding to cover an energy effi­ciency study as a first step for their poten­tial project, but other­wise the program cannot be combined with several other NYSERDA and federal programs such as AMEEP or NYS Clean Heat.

REDi: DEEP — Deep Energy Retrofits

Eligibility: Affordable Housing

REDi: DEEP is another joint program with HPD avail­able to the same target building type (multi­family build­ings receiving financing through HPD) but are looking to do deep-energy retro­fits that achieve at least a 35% improve­ment in modeled energy savings when comparing the existing system to the new one. These projects typi­cally involve substan­tial enve­lope improve­ments, compre­hen­sive elec­tri­fi­ca­tion of all building systems, and align­ment with high-perfor­mance building stan­dards such as passive house. 

Funding during construc­tion phases is up to $20,000 per unit and up to $5 million per project, plus up to $25,000 in soft costs upon project final­iza­tion and approval. Like REDi: EB, the REDi: DEEP program awardees cannot stack the program with several other NYSERDA programs such as AMEEP or NYS Clean Tech.

HCR/​NYSERDA Clean Energy Initiative (CEI)

Eligibility: Affordable Housing

This part­ner­ship between NYSERDA and New York State Homes and Community Renewal (HCR) funds all-elec­tric retro­fits for existing and historic build­ings, typi­cally in the form of heat pumps for domestic hot water and/​or space heating and enve­lope and venti­la­tion improve­ments. Projects are described as either substan­tial or moderate rehabs, and funding is avail­able for projects seeking Low Income Housing Tax Credit (LIHTC), bond financing, and/​or other subsi­dized financing from HCR. Similar to the REDi:EB program, successful appli­cants will be assigned a Technical Assistance Provider who will assist with design and compli­ance at no extra cost.

Full-Service Programs

Full-service programs provide funding for both early-phase tech­nical assis­tance and the next phase of imple­men­ta­tion of energy effi­ciency projects.

NY-Sun Residential/​Nonresidential Incentive Program (PON 2112)

Eligibility: Market Rate & Affordable Housing

This program, through New York Solar Authority’s Megawatt Block Program, is New York State’s primary way of deliv­ering direct finan­cial incen­tives for the instal­la­tion of solar panels, of which is paid as a lump-sum rebate after a completed instal­la­tion. The incen­tive amount is in dollars per watt ($/​W — remember that a watt is the stan­dard unit of power, measuring the rate at which energy is trans­ferred, consumed, or gener­ated), and varies depending on the size and loca­tion of the project. There are different rates for the five different terri­to­ries in the State; there are also greater incen­tive rates for early market partic­i­pa­tion based on loca­tion. Approved appli­cants must use program-approved contrac­tors to complete the work. 

For build­ings consid­ering taking on a solar project, however, Johnson advises that they consider how a solar array fits into their overall energy goals — because they can vary. 

“Are [your] goals to reduce my elec­tricity consump­tion? [If so,] installing solar will help you reduce your elec­tricity consump­tion,” he said. ​“Is my goal to find a project that’s going to help reduce my carbon emis­sions and lower any sort of poten­tial fines in the future? If that’s the case, solar may not be at the top of the list.” 

Financing Programs

NYSERDA also provides financing for projects focused on carbon reduc­tion tech­nology and upgrades in existing multi­family build­ings through NY Green Bank — a special­ized fund that brings together public capital and the private banking sector to jump­start clean energy infra­struc­ture and finance projects that might not be funded other­wise. In more than a decade of its exis­tence, NY Green Bank has committed close to $3 billion to such projects. 

NY Green Bank – Clean Energy Financing Arrangements (RFP 1)

Eligibility: Market Rate & Affordable Housing

This financing oppor­tu­nity targets projects in the range of $10 million to $50 million for a variety of clean energy and sustain­able infra­struc­ture projects and tech­nolo­gies throughout the state, such as clean energy gener­a­tion sources (solar, wind, hydro­elec­tric), energy-effi­cient appli­ances and HVAC building systems, and more. Projects must employ strate­gies and tech­nolo­gies that reduce green­house gas produc­tion and other public health bene­fits. Financing is avail­able in several different forms, including debt, equity, credit enhance­ment, and pre-devel­op­ment financing solu­tions supporting clean energy projects at every stage, from early devel­op­ment and construc­tion through long-term operations.

NY Green Bank – Financing Arrangements for High Performance Affordable Housing (RFP 18)

Eligibility: Affordable Housing

This incen­tive is targeted at providing finan­cial assis­tance (either loans or refi­nancing) for New Yorkers living in histor­i­cally disad­van­taged commu­ni­ties (DACs), either in regu­lated or natu­rally-occur­ring afford­able housing. These financing options are avail­able throughout the project life cycle, including pre-devel­op­ment loans, construc­tion financing, equip­ment and retrofit loans, and long-term perma­nent debt that can also be used to refi­nance existing mort­gages while recog­nizing future energy savings. Projects can be either new construc­tion or the retro­fitting of existing housing to high levels of energy perfor­mance (elec­tri­fi­ca­tion and/​or elec­tri­fi­ca­tion readi­ness measures for existing build­ings, all-elec­tric building systems in new construc­tion projects). 

Utility Programs

These programs are offered in part­ner­ship with a local utility (i.e. Con Edison).

New York State Clean Heat Statewide Heat Pump Program (NYS Clean Heat)

Eligibility: Market Rate & Affordable Housing

In New York City, the NYS Clean Heat program is admin­is­tered by ConEdas an incen­tive for the elec­tri­fi­ca­tion of space heating and cooling systems, water heating, and even some enve­lope improve­ments and heat pump controls when paired with an eligible heat pump system. 

Experts recom­mend the program as a powerful on-ramp to help more New Yorkers install heat pumps in their build­ings, and many in the city — including Katherine DeFehr, who spoke to Skylight in 2024 — have bene­fitted from it. In 2020, her Brooklyn Heights co-op building qual­i­fied for $215,694 in incen­tives through the Clean Heat program to install heat pumps throughout their 20 units. 

Common projects supported by Clean Heat include air-source heat pumps, ground-source (geot­hermal) heat pumps, central heat pump systems, and domestic hot water heat pumps. The incen­tive is distrib­uted in the form of payment directly to program-specific partic­i­pating contrac­tors or distributors. 

New York State Affordable Multifamily Energy Efficiency Program (AMEEP)

Eligibility: Affordable Housing

While NYS Clean Heat is narrowly focused on the elec­tri­fi­ca­tion of heating and cooling systems, AMEEP is broader in scope — projects can range from lighting upgrades to new windows, insu­la­tion, and compre­hen­sive whole-building retro­fits — but specif­i­cally only for afford­able multi­family buildings. 

AMEEP is also admin­is­tered by ConEd, and incen­tives are typi­cally provided as cash rebates or grants to the building owner based on the scope of the project. More complex, expen­sive projects such as window replace­ments or domestic hot water heater replace­ments lead to larger rebates compared to simpler and smaller-scale projects like new common area lighting or energy-effi­cient appli­ances (dish­washers, stoves, etc). The incen­tive in New York City is capped at 85 percent of the total project cost or $1,000,000, whichever is lower.