New York

The state of New York began offering a corporate income tax credit for biodiesel purchases used for residential space heating and water heating beginning in 2006. The original credit was authorized for only one year from July 1, 2006 to June 30, 2007. However, in 2008 the law was amended to reinstate the credit for purchases made between January 1, 2008 and December 31, 2011. The window was extended through December 31, 2016 by A.B. 7793 in October 2011. Eligible taxpayers are defined as corporations that are subject to the franchise tax on business corporations, including a corporation that is a partner in a partnership.

The value of the tax credit is $0.01/gallon for each percent of biodiesel blended with conventional home heating oil, up to a maximum of $0.20/ gallon. In other words, the purchaser of a mixture of 10% biodiesel and 90% conventional heating oil is entitled to a tax credit of $0.10/gallon. Biodiesel is defined to include certain fuels created from both animal fats and vegetable oils. Biodiesel use in buildings with both residential and non-residential space and a common oil storage tank is eligible for a partial credit based on the percentage of square footage used for residential purposes. If a taxpayer's allowable credit exceeds their tax liability for a given year, the remaining credit is refunded rather than carried over to a subsequent tax year.

In order to claim the tax credit corporate income taxpayers must complete Form CT-241, which is available on the New York State Department of Taxation and Finance web site.

In 2006 the Town of Riverhead on Long Island enacted a special allowance in its building permit fee structure to provide a discount to people wishing to install energy conservation devices on residential or commercial buildings. The provision in the town code applies to any energy conservation device "installed in or on a structure which qualifies for any federal, state or local tax exemption, tax credit or tax rebate", but explicitly mentions solar panels as eligible for favorable treatment. The original law authorized a flat permitting fee of $150, which still generally applies, but the law was amended in December 2011 to create a "Fast-Track" process for residential systems that meet certain technical requirements (e.g., maximum roof loading, mounting orientation). The fee for Fast-Track applications is set at $50 and the process also entitles the applicant to expedited review (14 days). Applicants subject to review by the Landmarks Preservation Commission or the Architectural Review Board are not eligible for the Fast-Track process. Prior to the code revision permitting fees for solar panel installations often approached $1,000.

NYSERDA offers a program to encourage more industry involvement in the building of Energy Star rated Homes. Incentives are available for newly constructed residential dwellings of 3 stories or less that are located with the service territory of an electric or natural gas utility that collects the System Benefits Charge (SBC) or the Energy Efficiency Portfolio Standard (EEPS) surcharge. The utility service territories which currently meet this requirement are as follows: Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, National Fuel Gas, National Grid, Orange and Rockland Utilities, Inc., Rochester Gas & Electric Corporation.

When a builder is certified as an Energy Star Home Builder and builds a home to Energy Star Standards, the builder is eligible for a direct cash incentive of $1,250 to $1,500. The actual level of the incentive depends on where it is located with an additional $250 incentive available for homes within the "downstate" region of the state. The downstate region is comprised of the five New York City counties, Westchester county and certain locations on Long Island. Larger incentives are available for display homes ($2,500) and model homes ($3,000), although the downstate bonus is not available for display and model homes. Bonuses are available for insulation, primary heating system, and primary cooling system installations completed by BPI-accredited professionals employed at a BPI-accredited firm. Home energy rating providers are eligible for an incentive of $75 per dwelling unit for the provision of various services. Homeowners and building owners are eligible for an affordable housing incentive of up to $500 per dwelling unit where the occupant or expected occupants meet affordable housing income eligibility criteria. Builders and other program contractors may also be reimbursed for a portion of their expenses associated with advertising campaigns for New York Energy Star Homes (see program web site for details).

Further specifications, including information on becoming a partner builder, minimum home performance standards, and contact information for regional account managers (organized by county), is available on the program website.

Under Program Opportunity Notice (PON) 2414, the New York State Energy Research and Development Authority (NYSERDA) offers incentives for projects that research, develop, demonstrate, or commercialize a manufacturing process for clean energy technologies. Clean energy technologies are defined to include: technologies that generate or support the generation of energy; end-use technologies, energy storage technologies; and distribution and transmission technologies. In order to be eligible for the program, technologies and relevant components of their supply chain must have been successfully demonstrated to substantially reduce energy-related environmental impacts. Projects throughout the state are eligible for the program, which is set up to provide incentives for several categories of project. Brief descriptions of these project categories and the associated funding limitations are described below.

• Manufacturing Process Development (Category A): Projects that develop a manufacturing process for a new clean energy technology that result in a functioning manufacturing process within the state are eligible for an incentive of the lesser of 50% of project costs or $400,000.
• Manufacturing Process Improvement (Category B): Projects that demonstrate a process improvement of an existing manufacturing process that results in actual on-site energy savings are eligible for an incentive of the lesser of 50% of project costs or $400,000.
• Technology Development (Category C): Projects that develop, demonstrate, or commercialize an innovative manufacturing tool (e.g., assembly or testing equipment) are eligible for an incentive of the lesser of 50% or project costs of $400,000. In order to qualify under this category, the proposer must have strong ties to the clean energy sector and partner with a manufacturer that would be a candidate for using the technology.
• Feasibility Studies (Category D): Feasibility studies for projects that would fall under Categories A, B, or C are eligible for an incentive of the lesser of 50% of project cost or $100,000. Eligible projects may include proof-of-concept investigations or prototype design and development.

A total of $2.5 million in funding is available under the solicitation. Proposal deadlines are set at May 9, 2012 for Round 1 and September 26, 2012 for Round 2. All or none of the funding may be awarded in either round. Please see PON 2414 at the program web site listed at the top of this page for further information.

Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. In 2009 New York enacted two separate bills -- A.B. 8862 in August and A.B. 40004A in November -- authorizing local governments to offer these types of programs using different mechanisms. Although some similarities exist between the two authorizations, the latter is generally much broader in scope and allows for a more versatile set of local programs than the former. (Not all local governments in New York offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

Municipal Sustainable Energy Loan Programs

In November 2009, the New York legislature enacted A.B 40004A, authorizing counties, towns, cities and villages (collectively referred to as "municipal corporations") to offer sustainable energy loan programs. Loans may be used to pay for energy audits; cost-effective, permanent energy efficiency improvements (i.e., appliances are generally not eligible); renewable energy feasibility studies; and the installation of renewable energy systems. The authorizing legislation does not limit the authority of local governments to provide loans to different sectors (e.g., residential, commercial, etc.). Any such limitations would be determined at the local level for a specific local program.

In order to qualify for a loan, energy audits or renewable energy feasibility studies must be performed by a contractor certified according to standards set by the New York State Energy Research and Development Authority (NYSERDA) or by a local government under standards at least as stringent as those developed by NYSERDA. Energy efficiency improvements must meet cost-effectiveness criteria also established by NYSERDA.

The definition of eligible renewable energy systems includes solar photovoltaic, solar thermal, wind, geothermal, anaerobic digester gas, and fuel cell systems that generate electric or thermal energy. NYSERDA is permitted to approve additional renewable energy technologies as eligible, with the exception of those that involve combustion or pyrolysis of solid waste. Loans may not be issued for energy efficiency improvements that have not been determined to be appropriate by an energy audit or for renewable energy systems that have not undergone a feasibility study. Loans may not exceed 10% of the value of the real property upon which the improvements take place, or the cost of such improvements.

Municipal corporations are permitted to fund these programs using federal grant assistance or federal credit support mechanisms including direct loans, loan guarantees, and debt instruments. Municipal corporations may, but are not required, to provide for repayment of the loan through a charge on the real property which benefits from the loan. If a municipal corporation chooses this option, the charge must be collected at the same time and in the same manner as municipal taxes, but must be listed separately from other charges on the bill. In all cases, the loan constitutes a lien against the real property upon which the improvements take place.

Energy Waste Improvement Districts

In August 2009, the New York legislature enacted A.B. 8862, allowing towns to create residential home energy efficiency programs funded by periodic charges or fees for the services rendered. The effect of this policy, although not precisely a loan, is similar to a loan. In towns that offer such a program, the town would be permitted to enter into contracts for home energy audits and energy efficiency improvements on behalf of participating residents. Participating residents benefit by having improvements made upon their property by the town at no up-front cost to themselves and are permitted to repay the town for the improvements through a periodic fee or charge. The charges associated with the service constitute a lien upon the property on which the improvements took place.

In a characteristic unique to New York, the law integrates towns' ability to offer these programs into existing provisions under which towns create refuse and garbage improvement districts and collect fees for the provision of these services. The law specifically allows for programs that are designed for "the prevention or reduction of waste matter consisting of carbon components or energy waste from residential properties and the performance of energy audits and the purchase and installation of energy efficiency improvements on such residential properties." Solar thermal technologies are considered an eligible energy efficiency improvement for the purpose of such programs. The law itself appears to be modeled after the Long Island Green Homes Program which uses the same program structure. The Long Island Green Homes program was initiated in 2008 by the Town of Babylon.

The Long Island Green Homes Program is a self-financing residential retrofit program designed to support a goal of upgrading the energy efficiency of existing homes in the Town of Babylon. The program is a "benefit assessment" program, which allows the town to make a specific improvement that serves a public purpose on a parcel of property, and assess the cost of the benefit against the property. The main benefit of the program is that it allows homeowners to avoid the potentially large up-front costs associated with making energy efficiency improvements, and instead allowing them to pay for their cost over time through the money they save from reduced energy bills. The payment obligation is attached to the property itself rather than to the owner, so it remains with the home upon any changes in ownership. It is important to note that while the cost of the improvements in considered to be assessed against the property, this does not mean that the assessed value of the property used to compute property taxes is increased.

In order to participate in the program, residents must first fill out a form (the Self-Check Home Inventory Form) providing certain information about their home and historic energy use. Program personnel will then schedule a Home Performance Evaluation to be conducted by a town-licensed, Building Performance Institute (BPI) accredited energy auditor.  Based upon the results of the Home Performance Evaluation, the contractor will enter into a contract directly with the Town and will make the recommended energy-efficiency improvements chosen by the homeowner.

Possible improvements include but are not limited to efficient lighting, weatherstripping, caulking, air and duct sealing, insulation, upgrading of heating units. The program pays the contractor for the cost of the improvements and arranges a monthly payment plan for the homeowners to repay these costs through a separate contract. The homeowner's payment schedule is generally intended to result in annual payments that are less than the homeowner's annual energy cost savings.

This program is funded by the town's Solid Waste Fund. In order to accommodate the program, the town has expanded its definition of solid waste to include energy waste based on its carbon content.

Under PON 2157 The New York State Energy Research and Development Authority (NYSERDA) offers incentives for the purchase, installation, and operation of customer sited tier (CST, also called "behind the meter") fuel cell systems used for electricity production. Because such systems will help fulfill the CST component of the state RPS requirement, eligibility for incentives is generally limited to customers who pay the RPS surcharge on their electricity bills. Exceptions to this rule may be made on a case-by-case basis for projects that demonstrate significant public benefits consistent with program objectives. There are no minimum or maximum size limits for projects, though incentives will generally be granted only for installed capacity not exceeding the customer's electrical load. Exceptions to this rule may be made on a case-by-case basis and participants are permitted to install excess capacity at their own expense.

Incentive levels and limitations vary by system size. Bonus capacity incentives are available for large projects that provide secure/standalone capability at sites of Essential Public Services (e.g., police stations, hospitals, public utilities). Performance incentives can be received for up to 3 years for systems with an annual capacity factor of 50% or greater. The total value of incentives is capped at $50,000 for systems of up to 25 kilowatts (kW) and at $1 million for larger systems. The incentive amounts offered for different types of systems are as follows:

Basic Capacity Incentive: Large systems only, $1,000/kW up to $200,000 per project site

Bonus Capacity Incentive: Large systems only, $500/kW up to $100,000 per project site

Performance Incentive: $0.15 per net kWh, up to $20,000 per project site per year for small systems and $300,000 per project site per year for large systems.

Projects will receive the first half of the basic capacity payment upon system installation and the remaining portion plus any bonus incentives after the system has been commissioned and approved by NYSERDA. The capacity factor for the performance incentive will be determined annually by dividing the net system output by the theoretical maximum output (rated capacity times 8,760 hours/year). The performance incentive will be disbursed annually after performance data have been collected.

All systems, regardless of size, must be new and listed as an eligible fuel cell system by NYSERDA and are subject to post-installation inspection. All systems must have performance monitoring capability and systems larger than 25 kW are required to have high-grade monitoring and sensor equipment (e.g., revenue grade fuel and electricity meters) and remote data collection capability. Owners of small systems must report manually collected data at least every three months to NYSERDA.

Ownership of renewable energy credits (RECs) associated with system electricity production is not specifically addressed. However, the program rules do specify that attributes associated with electricity production by supported systems will be reported as part of the CST of the state RPS program for the life of the system, and participants are prohibited from entering into any transactions which would export energy outside of New York State. In cases where the system is fueled by landfill gas, biogas, or anaerobic digester gas*, methane destruction credits are considered separate from electric power based RPS attributes and may be retained by the owner.


*Fuel cell systems fueled exclusively by anaerobic digester gas (ADG) must apply first to the NYSERDA ADG-to-Electricity Rebate and Performance Incentive program. Such systems are only eligible under the fuel cell program when funds for the dedicated anaerobic digester incentives have been depleted.

The Long Island Power Authority's (LIPA) Solar Initiative Feed-in Tariff (FIT) program provides fixed payments for electricity produced by approved photovoltaic systems over a fixed period of time. The program operates under a sell-all arrangement, where the full amount of energy production from the facility is sold to the utility (i.e., no on-site use). Systems from 50 kilowatts (kW) to 20 megawatts (MW) that were not connected to the grid prior to July 16, 2012 are eligible to participate. The program offers a 20-year contract at a rate of $0.22/kWh, which may change over time as the program progresses. A total of up to 50 MW of new solar generation will be supported by the program, with 5 MW reserved for systems from 50 - 150 kW and 10 MW reserved for systems larger than 150 kW and up to and including 500 kW. The system size is determined as the lesser of the sum of the AC rated output of all inverters, or the PTC rating of the system multiplied by the inverter efficiency. Projects must be connected to the LIPA grid at the distribution level, defined as 13.2 kilovolts (kV) or below.

Facilities that enroll in LIPA's solar rebate programs are not eligible for the FIT. Facilities must retain qualifying facility (QF) status in order to continue to be eligible for the program. The contracts will continue to be offered until June 30, 2014 or until the 50 MW program cap is reached. There is not a separate application for the program; applications are processed through LIPA's existing Small Generator Interconnection Procedures (SGIP) application.  Please see the program web site for further information, including a copy of the tariff and a list of frequently asked questions.

Note: The first proposal deadline was recently extended from November 8, 2012 to December 5, 2012. Subsequent proposal deadlines remain unchanged.

In March 2011 the New York State Energy Research and Development Authority (NYSERDA) began a new program offering incentives for customer-sited photovoltaic (PV) and biogas electricity generators of larger than 50 kilowatts (kW) located in certain regions of the state. The program is part of the Customer-Sited Tier (CST) of the state's renewable portfolio standard (RPS) and is funded by the RPS surcharge collected on the electricity bills of customers of the state's major investor-owned utilities (IOUs).  The regionally limited approach for this incentive program is an attempt to create greater geographic balance between the collection of RPS funding and the location of RPS-supported projects; however it has been modified somewhat from past rules under the most recent solicitation (PON 2589). Under the August 2012 solicitation program eligibility for biogas projects remains as it was under prior offerings; limited to systems sited within New York Independent Systems Operator (NYISO) Load Zones G, H, I, and J. For solar PV projects, NYISO Load Zones A - J are now eligible with the addition of Load Zones A - F under the current solicitation.

The incentive is based on actual and expected energy production from qualified systems. In order to participate in the program, applicants must submit a bid to NYSERDA as a $/kilowatt-hour ($/kWh) incentive request. Individual system size is also limited to that needed to supply 110% of historic or calculated on-site electricity needs. A bonus of 15% from the requested incentive level is available for projects that are located in certain Strategic Locations defined by individual utilities. Renewable biogas electricity generation facilities may include a variety of different technologies (e.g., fuel cells, microturbines, etc.) but incentives are limited to electricity generation. Renewable biogas may be locally fed to an electric generator, or directed through a pipeline as long as the biogas originates within the Zone Group (Zones G and H, or I and J) of the generator it serves. Please see the program web site for information on a variety of other equipment, application, and technical requirements.

The bid evaluation process is competitive, and projects which meet the screening and technical criteria will be ranked based upon incentive bids. NYSERDA has also calculated a Maximum Acceptable Incentive Bid above which no requests will be funded. Incentives are limited to 50% of the installed cost of the equipment; to $6 million per applicant per round (including any Strategic Location bonuses); and $3 million per individual project. If selected for incentives, the applicant will be required to conduct an energy efficiency assessment to identify possible improvement measures related to electricity use.

Projects which are approved for incentives are entitled to both up-front payments and performance payments for up to three years. The payment structure is as follows:

• First up-front payment: 15% of the incentive bid (plus the 15% Strategic Location bonus if applicable) times the estimated energy production of the system over three years. This payment is issued upon demonstration to NYSERDA that all major equipment has been procured and transported to the site, and that all applicable permits have been obtained.
• Second up-front payment: 15% of the incentive bid (plus the 15% Strategic Location bonus if applicable) times the estimated energy production of the system over three years. This payment is issued once the project is interconnected to the grid and has proven capable of providing performance data.
• Performance payments: Performance payments are issued annually based on actual energy production. For any given year, the payment will be 70% of applicant's incentive bid (plus the 15% Strategic Location bonus if applicable) times the actual energy production.

Although current PON has a deadlines of December 5, 2012; March 14, 2013; and August 29, 2013,  the program itself is scheduled to last through 2015. While the original budget for this program was set at $150 million through 2015, in April 2012 the PSC added an additional $36.4 million for 2012 and $40.5 million for 2013, bringing total funding to roughly $227 million. The current solicitation includes overall funding $106.9 million broken up by year and groups of NYISO Load Zones. Please see the program web site for further information on how to participate.

The state of New York began offering a personal income tax credit for biodiesel purchases used for residential space heating and water heating beginning in 2006. The original credit was authorized for only one year from July 1, 2006 to June 30, 2007. However, in 2008 the law was amended to reinstate the credit for purchases made between January 1, 2008 and December 31, 2011. At this point it expired, but was extended again in July 2012 through the end of 2016. Eligible taxpayers are defined as individuals; members of a partnership or an LLC treated as a partnership for tax purposes; shareholders in New York S Corporations; and beneficiaries of an estate or trust.

The value of the tax credit is $0.01/gallon for each percent of biodiesel blended with conventional home heating oil, up to a maximum of $0.20/ gallon. In other words, the purchaser of a mixture of 10% biodiesel and 90% conventional heating oil is entitled to a tax credit of $0.10/gallon. Biodiesel is defined to include certain fuels created from both animal fats and vegetable oils. Biodiesel use in buildings with both residential and non-residential space and a common oil storage tank is eligible for a partial credit based on the percentage of square footage used for residential purposes. If a taxpayer's allowable credit exceeds their tax liability for a given year, the remaining credit is refunded rather than carried over to a subsequent tax year.

In order to claim the tax credit personal income taxpayers must complete Form IT-241, which is available on the New York State Department of Taxation and Finance web site.

Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.

In August 2012 the credit was amended yet again (A.B. 34) to allow it to be claimed for systems installed under lease or power purchase agreements (PPAs) of at least 10 years in length. For third-party owned systems, the residential homeowner may claim a tax credit in the amount of lease or PPA payments made during the taxable year, for up to 15 years. The 25% incentive for such systems refers to aggregate amount of payments owed rather than the amount made during any single year. The maximum allowable tax credit amount of $5,000 applies to the total amount of credits claimed regardless of the ownership arrangement. The new law has an effective date of August 17, 2012. It is unclear at this time whether tax credit claims for third-party owned systems will be permitted for installations made prior to this date.

Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar radiation, which, when installed in a residence, produces energy designed to provide heating, cooling, hot water or electricity." The credit may not be used for pool heating or other recreational applications. Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for the five following taxable years. Any portion of the system cost provided by a non-taxable federal, state, or local grant is not eligible for this credit.

In general systems must comply with the 25 kW capacity limit on residential, net-metered solar-energy systems*. However, in 2007 legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations. In addition, members of condominium management associations and tenant stockholders of cooperative housing associations are now allowed to claim a proportionate share of the total system expense towards the tax credit. These changes took effect beginning in the 2007 tax year, but as with other portions of the tax credit, they do not have an expiration date.


*The language of the tax credit generally requires that PV systems conform to the state's net metering law. In August 2008, the state net metering law was expanded by S.B. 7171 to increase the net metering size limits for residential PV systems from 10 kW to 25 kW. While several subsequent versions of the tax credit claim form did not reflect this change, the 2011 Solar Tax Credit Form IT-255 uses revised language which no longer references the former 10 kW limit.

Qualifying energy-conservation improvements to homes are exempt from real property taxation to the extent that the addition would increase the value of the home. The exemption includes general municipal property taxes, school district taxes, and special ad valorem taxes, but does not apply to special assessments. Eligible properties include single-family to four-family dwellings. The exemption applies directly to a variety of equipment and measures, but the statute also states that any conservation-related state or federal tax credit or deduction is also exempt from New York's property tax under this statute. The federal energy efficiency tax credit can be applied to energy efficient central air conditioners, electric heat pump water heaters, natural gas, propane, or oil water heaters, advanced main air circulating fans, and certain biomass-fueled stoves. In addition, the state Tax Assessor's Manual also specifically identifies solar and wind energy systems as eligible for the exemption.

In July 2012 New York enacted legislation allowing municipal corporations to exempt green buildings from real property taxes. It is important to note that this law allows but does not require local governments to extend favorable property tax treatment to green buildings. In order for the exemption to apply, a municipal corporation must first adopt an ordinance this effect.

In order to qualify for an exemption, the new construction or improvement (does not include routine maintenance or repairs) must commence on or after January 1, 2013; be valued in excess of $10,000; and projects must meet the LEED, Green Globes, American National Standards Institute, or substantially equivalent green building certification standards. Although the law references allowable green building rating systems/certifications other than LEED, the incentive amounts are described in relation to LEED certification levels. The amount of the exemption permitted varies by year and by the certification level achieved. Although not specifically identified in the law, it appears that the "year" refers to the property tax year in which the exemption is first claimed and subsequent years thereafter. The allowable exemption levels, stated in terms of the percentage of total taxes owed, are as follows:

Projects must actually achieve certification in order to be eligible for an exemption, and the exemption must be approved by the local assessor prior to taking effect. For further details, please see the full text of the enabling legislation.

Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption.

As originally created, the exemption was limited to solar and wind energy systems, but in September 2002, it was expanded (S.B 6592) to include farm-waste energy systems. These are defined as systems and related equipment that generate electric energy from biogas produced by the anaerobic digestion of agricultural waste -- such as livestock manure, farming waste and food processing wastes. The maximum rated system capacity for eligible farm-waste energy systems is 400 kilowatts (kW) and systems must be connected to the electric grid and operated in accordance with the state's net metering law (Public Service Law 66-j) in order to qualify. S.B. 5966A enacted in July 2006 extended the previous December 31, 2006 in-service deadline to December 31, 2010, and A.B. 10875 enacted in August 2010 further extended the deadline until December 31, 2014.

The exemption applies to systems that are (a) existing or constructed prior to July 1, 1988 (mandatory), or (b) constructed subsequent to January 1, 1991, and prior to January 1, 2015 (local option). The law intends to encourage the installation of solar, wind and farm-waste energy equipment systems and to ensure property owners that their real property taxes will not increase as a result of the installation of these systems. The amount of the exemption is equal to the increase in assessed value attributable to the solar, wind or farm-waste energy system. The definition of solar includes passive solar heating systems such as mass wall and direct gain systems. In the case of solar pool heating, solar energy collection, control, and distribution equipment is eligible; however, the pool itself does not qualify as a storage medium or otherwise. The exemption applies only to general municipal and school district taxes; it cannot be applied to special assessments or special ad valorem levies.

With respect to systems constructed after January 1, 1991, and before January 1, 2015, each county, city, town, village and school district (except the city school districts of New York, Buffalo, Rochester, Syracuse and Yonkers) may choose whether to disallow the exemption. The option must be exercised by counties, cities, towns and villages through adoption of a local law and by school districts through adoption of a resolution. Click here for a list of local bodies that have opted not to offer the exemption. Alternately, a local government that has not opted out of the exemption is permitted to require the property owner to enter into a contract for payments in lieu of taxes, not to exceed the amount payable without the exemption.

Eligibility definitions and guidelines solar, wind-energy, and farm waste energy equipment have been issued by the New York State Research and Development Authority (NYSERDA) and are available above or on the program website.

In August 2008 the State of New York enacted legislation allowing a property tax abatement for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property. As originally enacted the in-service deadline for eligible systems was December 31, 2012. However, in August 2012 the abatement was extended to systems placed in service through December 31, 2014 at a reduced rate.

The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 5, 2008 (the effective date) and December 31, 2010 were eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Systems placed in service between January 1, 2013 and December 31, 2014 are eligible for an abatement of 2.5% of eligible expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35%, 20%, or 10% of the installed system cost depending on when it is built.

The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials and labor associated with planning, designing, and installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges. However, the amount of eligible expenditures is not reduced by federal, state or local tax credits, tax abatements, tax exemptions or tax rebates.

The abatement program is administered by the Department of Finance in cooperation with the Department of Buildings. Applications for the abatement must be filed by March 15 in order to be eligible for a tax credit during the year the application is submitted. Applications submitted after this deadline can be applied to taxes owed for the following fiscal year. It is important to note that claiming the abatement does not affect whether a building owner can claim New York's real property tax exemption on the value added by solar, wind, and farm-based biogas energy systems.


*This incentive is similar to an investment tax credit for renewable energy systems, which are frequently applied to personal or corporate income taxes. It is unique in that the tax benefits are recouped through reduced property taxes on the host building instead of through reduced income taxes.

New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. It does not apply to solar pool heating or other recreational applications. The law also permits local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. Local sales tax rates in New York range from 1.5% to more than 4% in addition to the general state sales tax rate of 4%.

The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list (Publication 718-S) is updated frequently. The New York Department of Taxation and Finance has issued a small amount of additional guidance and instructions on how to claim the exemption in Publication TSB-M-05(11)S.

In July 2005, New York enacted legislation that allows local governments to grant a local sales tax exemption for residential solar energy systems. New York City passed Resolution 1121 in August 2005 (effective December 1, 2005) to exempt residential solar energy systems equipment and services from sales tax.

New York exempts retail sales of wood used for residential heating purposes from the state sales tax. The law also permits local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. Local sales tax rates in New York range from 1.5% to more than 4% in addition to the general state sales tax rate of 4%. For buildings with both residential and non-residential units where more than 25% of the space is used for non-residential purposes, an allocation must be made between the amount of fuel used for residential purposes and that used for non-residential purposes.  The non-residential portion remains subject to the state sales tax.

The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for residential energy services. The residential energy services sales tax list (Publication 718-R) is updated frequently.

New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption was extended to non-residential solar systems in August 2012 (S.B. 3203), effective beginning January 1, 2013. For both residential and non-residential systems, the exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. It does not include equipment that is part of a "non-solar energy system". For residential systems additional language prohibits the exemption from being claimed for a system that uses "any sort of recreational facility or equipment as a storage medium".  This language is not replicated in the non-residential exemption, thus it would appear that a system used to heat a non-residential pool would qualify while one used to heat a residential pool would not. There is not an expiration date for this incentive.*

The law also permits local governments (municipalities and counties) to grant an exemption from local sales taxes. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list (Publication 718-S) is updated several times per year. The New York Department of Taxation and Finance has issued a small amount of additional guidance and instructions on how to claim the residential exemption in Publication TSB-M-05(11)S. In December 2012 the department issued similar instructions on how the claim the commercial exemption in Publication TSB-M-12(14)S.


*The New York Code contains duplicate sections NYCL Tax § 1115 (ee). The first pertains to the sales tax exemption for residential solar energy systems and contains no expiration date, while the second contains rules for an unrelated exemption with expiration dates of December 1, 2014, and December 1, 2016. This appears to be a mistake that will not affect the sales tax exemption for residential solar energy equipment.

The Assisted Home Performance Program provides grants to low-income home owners in 1-4 family buildings for up to 50% of costs for energy efficient improvements. The household income eligibility cut-off is set at 80% of the Median State Income or 80% of the Median Area Income (by county), whichever is higher. County level income eligibility levels based on household size are available on the program web site.

Single-family homeowners that meet the income eligibility guidelines generally qualify for grants of up to $5,000. An income-qualified owner that occupies a unit in a 2-4 unit building can receive a subsidy of up to $5,000 for the whole building without any income verification required for the tenants. A higher subsidy, up to a total of $10,000 per building, may be available if tenants also are income eligible. Incentives are reduced if only a portion of the tenants are income eligible (e.g., the maximum incentive is 30% if only two out of four total tenants meet the income requirements). The remaining costs of installation and purchase may be covered by the Home Performance with Energy Star Financing Program or the New York Residential Loan Fund programs.

In order to apply, the homeowner must contact a BPI contractor or a community organization - both lists are located on the program website above. The contractor will perform a Comprehensive Home Assessment (CPA) to determine what measures need to be installed. The assisted home performance work scope must have a savings to investment ratio of at least 1.1 for the recommended package of improvements in the CPA. Eligible measures and minimum equipment standards for this grant program are somewhat more limited than those eligible for the financing programs above. Click here for a list of eligible measures, and note that exceptions indicated in the footnotes.

Eligible customers are electricity and natural gas customers in the state that pay the Energy Efficiency Portfolio Standard (EEPS) surcharge on their energy bills. This includes most investor-owned electric and gas utilities within the state, but does not include municipal utilities.

The primary focus of EmPower New York is to provide cost-effective electric reduction measures, such as replacement of refrigerators and installation of high efficiency lighting. This program also offers cost effective home performance measures such as insulation, air sealing and heating system repair or replacement, as well as health and safety measures. The New York State Energy Research and Development Authority (NYSERDA), currently contracts with Honeywell International to implement the EmPower New York Program.

Funding is limited, and services will be targeted to customers on the basis of energy usage and the potential for energy-saving measures. In order to qualify customers must live in a building with 100 or fewer units, and either participate in a low income utility assistance program or have an income at 60% or less of the median income. The program was formerly limited to customers in certain utility service territories, but has been expanded over time with additional funding sources to offer assistance throughout the state for both electric and gas efficiency measures. There is no cost to the customer for these efficiency improvements. In rental situations, certain measures that directly benefit the eligible tenant are eligible without a landlord contribution. Additional measures generally require a 25% landlord contribution.

NYSERDA offers several options for homeowners to finance energy efficiency improvements made under the Home Performance with Energy Star program. NYSERDA partners with Energy Finance Solutions (EFS) to offer either on-bill financing or an unsecured loan for the installation of eligible energy efficiency measures in owner-occupied 1-4 family homes. EFS administers the loans, but the NYSERDA program subsidizes the interest rates, resulting in favorable terms for program participants. In order to participate in the on-bill financing program, the homeowner must be a customer of one of the following participating utilities: Central Hudson, Con Edison, Long Island Power Authority, National Grid (Upstate), New York State Electric and Gas, Orange and Rockland, or Rochester Gas and Electric.

The on-bill financing and unsecured loan options are generally use similar procedures and terms, although some differences do exist. To initiate the loan, a Comprehensive Home Assessment (CHA) must be performed by a certified Building Performance Institute (BPI) contractor, which may cost a small fee. In many cases the customer will be eligible for a reduced or no-cost energy home assessment depending in part on their income level. After the CHA is performed, the borrower will work with the contractor to decide what improvements should be made. In order to be eligible for a loan, the improvements must have a savings to investment ratio of at least 1.0. For any improvements and replacement appliances, the borrower will sign a customer contract and a “Home Performance Work Scope.” After a credit check and these forms are submitted, work may begin. Following completion of the work, a Certificate of Completion will be sent to the program administrator. Following review and approval, payment will be rendered directly to the contractor and the borrower will commence repaying the loan. For the on-bill financing option, the payment obligation will be included in the monthly charges from the utility.

The unsecured loan program is available statewide to all New York residents, although as noted above the on-bill financing option is limited to customers of participating utilities. To the extent that the customer is eligible for other energy efficiency incentive programs (e.g., from their utility), NYSERDA will coordinate with the respective program administrators to minimize confusion. Participants in the financing programs remain eligible for other incentives offered by utilities or by NYSERDA, including the NYSERDA Home Performance with Energy Star High Efficiency Measure Incentive (HEMI) and the NYSERDA Assisted Home Performance Grants Program. For further information on this program, please consult the program website(s) or use the contact information provided below.

The New York State Energy Research and Development Authority (NYSERDA) has extended the Participation Agreements of the Assisted Home Performance Program Lenders. Lenders may continue to offer customers access to the Residential Loan Fund Program through December 31, 2012.

The New York Residential Loan Fund, administered by the NYSERDA, provides reduced-interest rate loans through participating lenders to finance renovation or construction projects that improve a home's energy efficiency. The level of interest rate reduction may be up to 4%, but is adjusted to maintain a floor rate of 3%. Loans are limited to residents in 1-4 family homes that are customers of one of the state's six investor-owned electric or natural gas utilities -- Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., National Grid, New York State Electric & Gas Corporation, Orange and Rockland Utilities, Inc., or Rochester Gas and Electric Corporation -- and that pay the System Benefits Charge (SBC). Customers are eligible for loans of up to $20,000 for up to a 10-year loan term.

In order to qualify for the program, the customer must participate in the NYSERDA Home Performance with Energy Star Program and abide by the accompanying program rules and regulations. Formerly the loan program allowed participants in the NYSERDA Wind Incentive and Photovoltaic (PV) Incentive programs to apply for assistance; however, recent revisions to the Wind Incentive and PV Incentive programs do not allow participants to also take advantage of the Residential Loan Fund.

Please consult the Residential Loan Fund and NYSERDA Home Performance with Energy Star websites for additional program information.

Note: In October 2012 NYSERDA submitted a petition to the New York Public Service Commission (PSC) seeking to increase the maximum incentive offered under this program from $1 million to $2 million. In the petition NYSERDA argues that the current incentive limits are no longer sufficient to promote development due primarily to the sunset of the Federal 1603 Cash Grant in Lieu of Tax Credit and declines in electricity prices. The PSC has not yet ruled on the request. For further information see NYSERDA's ADG Program Modification Petition and other related materials in NY PSC Case 03-E-1088, which addresses this and other aspects of the state renewables portfolio standard (RPS). The current solicitation for projects under Program Opportunity Notice (PON) 2684 will use $5 million in funding from the New York Power Authority (NYPA) as a temporary bridge to offer incentives of up to $2 million until the PSC acts on the petition described above. Funding under PON 2684 is only available for new systems of 100 kW or larger that use dairy farm waste or dairy product processing waste for at least 50% of the digester feedstock.

The Anaerobic Digester Gas-to-Electricity program is designed to support small-sized electricity generation where the energy generated is used primarily at the electric customer's location (third-party project ownership structures are permitted). Interested parties should note that it combines both an up-front incentive for new installed capacity and a performance-based incentive for energy production. The program has been classified as a rebate program because program details suggest that the bulk of incentives available for a given project will take the form of an up-front payment based on new installed capacity.

Customer eligibility is generally limited to those that that pay the RPS surcharge on their electric bills (i.e., customers of the state's major investor-owned utilities). The electricity generated under the program will be counted towards the Customer-Sited Tier (CST) portion of the state RPS. The current program authorization extends through December 31, 2015, but the recent project solicitation under PON 2684 has an application deadline of January 31, 2013. A total of $57 million has been authorized to fund incentive payments through 2015 (annual budgets range from roughly $10 - $13 million), limited to $1 million per Anaerobic Digester Gas (ADG) system. Under PON 2684 the maximum incentive has been increased to $2 million using funding from the NYPA. The total funding available under PON 2684 ($28.6 million) reflects the 2012 and 2013 program budgets authorized by the PSC and an additional $5 million from the NYPA. Only new systems of at least 100 kW that use dairy farm waste or dairy product processing waste for at least 50% of their feedstock input are eligible for funding under PON 2684.

Eligible system size is limited to either: (1) the capacity eligibility limit on farm based electricity generating equipment under New York's net metering law which is currently set at 1 megawatt (MW), or (2) the customer's approximate Peak Connected Load. The peak load limitation may be adjusted if NYSERDA determines that public benefits or practical considerations argue in favor of a higher limit. In order to participate in this program, applicants must comply with all program rules, procedures, and eligibility requirements, submit all required forms and supplemental documentation, and enter into a Standard Performance Contract Agreement with NYSERDA. Applicants must also adhere to measurement and verification requirements throughout the term of the Agreement.

The total incentive available under PON 2684 includes several elements. The capacity based incentives include distinct incentives for both the digester and generator components of a system, as well as certain additional system components or capabilities. In summary, the available incentives are as follows (see PON 2684 for further details):

• Fixed Capacity Incentive: Ranges from $12,500 - $100,000, depending on the type of equipment being employed
• Variable Capacity Incentive: Ranges from $125/kW - $2,000/kW, depending on the type of equipment being employed.
• Performance-Based Incentive: $0.025/kilowatt-hour (kWh) on up to 10 years of estimated electricity production using a 75% capacity factor.
• Additional Component Capacity Incentives: Available for systems that employ higher quality biogas clean up measures, have grid upgrade costs exceeding $100,000, have black start capability, are designed to accept significant quantities of food waste, have contracts with institutional sources for acceptance of food waste feedstock, or employ cooperative group management services with at least two other digesters. These incentives include a fixed and variable component.

For projects that receive federal funding (e.g., a 1603 Treasury Grant), the capacity incentive will be reduced by 50% of that additional funding. The total capacity incentive (fixed plus variable) is limited to the maximum available incentive of $2 million minus the performance incentive. NYSERDA will pay up to 10% of the total calculated performance incentive in the form of an annual payment during each of the first 10 years of the performance period. The percentage paid in a given year is determined by the ratio of actual electricity production compared to the total contracted generation.

NYSERDA counts the environmental attributes associated with energy production by funded systems towards the state RPS target for the life of the system. For further program details, including application materials and information on additional requirements, visit the program web site listed at the top of this page.

Note: The expiration date for this program listed in Program Opportunity Notice (PON) 1059 has now passed. This summary has been retained for informational purposes only and will be updated as further information becomes available.

Under the New York Energy $mart Program, the New York State Energy Research and Development Authority (NYSERDA) offers incentives for energy-efficient lighting projects implemented by participants in NYSERDA's Commercial Lighting Program.* As of August 2011, through December 30, 2011 a total of $300,000 is available on a first-come, first-served basis for projects designed to improve energy-efficient lighting in commercial facilities. Contractors, distributors, designers, architects, engineers, energy services companies (ESCOs), interior designers, manufacturing representatives, and other lighting decision makers are eligible to apply. The program does not offer incentives directly to end-use customers. The incentive amount varies by project size and type. See the program web site for details.

To receive incentives under this program, the applicant must be approved as a "Business Partner" by NYSERDA. In addition, the applicant must target customers located in the following electric utility service territories: Central Hudson Gas & Electric, Con Edison, New York State Electric & Gas, National Grid, Orange & Rockland Utilities, or Rochester Gas and Electric. Projects must be implemented in a building that contributes to the state's System Benefits Charge (SBC) through one of these utilities. Business Partner Participation Agreements executed on or after January 1, 2009 are effective until December 30, 2011, at which time they will expire.


*For more information on how to participate in NYSERDA'S Commercial Lighting Program, contact ICF International, NYSERDA’s program administrator, at 1-866-698-8177.

Note: The eligible technologies listed above are only examples of some improvements/installations that may supported under the program. For any given project, the supported measures will vary based on an evaluation of the most appropriate improvements for improving energy efficiency. The new construction portion of the program offers both a Prescriptive Path and a more flexible Performance Path.

Under NYSERDA's Energy $mart Multifamily Performance Program, new construction of multifamily buildings and existing multifamily buildings are eligible for incentives that improve energy savings through energy efficiency or innovative energy solutions, such as renewable energy. Through this program, interested building owners work with a Multifamily Performance Partner. The program website contains a guide to assist building owners/managers in selecting a Performance Partner. Additional incentives are available for projects that serve or are expected to serve low-income tenants.

Working with the Performance Partner and NYSERDA, an existing building is compared against similar buildings and the owner and partner develop plans for how efficient the project will be in comparison. Implementing the project and reaching this goal will allow the building owner to receive a variety of incentives based on building performance. Owners of proposed new buildings work with partners to design buildings with Energy Star guidelines in mind. Incentives for both types of project are awarded as a series of payments upon completion of certain project milestones. To be eligible for affordable housing incentives, the building owner must demonstrate that the property is publicly-subsidized or that at least 25% of residents receive public assistance or earn below 80% of the State Median Income. NYSERDA accepts the use of several different types of proxy measures in determining whether the income eligibility requirement is met.

Eligible buildings must have five or more units, at least four stories, and have a central heating or cooling system serving five or more units or common area access to at least five or more units. Buildings must also contain residential space comprising at least 50% of the gross heated square footage of the entire project. Non-residential commercial related space of up to 50% is permitted.

Buildings generally must use electricity from one of the following providers: Central Hudson Gas & Electric Corp., Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, National Grid, Orange and Rockland Utilities, Inc. and Rochester Gas and Electric Corporation. Some of these utilities also offer multifamily residential incentives. Utility program participants are not permitted to participate in the Energy $mart Multifamily Performance Program.

The New York State Energy Research and Development Authority (NYSERDA) encourages the incorporation of energy efficiency and renewable-energy resources into the design, construction and operation of agricultural, commercial (wholesale/retail), industrial/manufacturing, institutional and multi-family buildings (5 units or more) through the Energy $mart New Construction Program. The definition of eligible applicants includes governmental entities, not-for-profits, health care facilities, K-12 schools, colleges and universities. Substantial renovations of existing buildings are also eligible for incentives under this program. Residents and businesses interested in participating in this program should first contact NYSERDA at (866) 697-3732. NYSERDA can walk potential participants through the process, and help them to better understand the program and how they can benefit from it.

Under Program Opportunity Notice 1601 (PON 1601), $91 million is available to conduct technical assessments of energy-efficiency measures in building designs and to offset up to 75% of the incremental capital costs to purchase and install energy-efficient equipment. Maximum incentive amounts vary by project type and incentive category. Incentive amounts for projects in Consolidated Edison's (ConEd) service territory are generally higher than incentive amounts for projects in other utilities' service territory. The total per project limit is $1.575 million for projects in ConEd's service territory and $825,000 for eligible customers of other utilities. Bonus incentives for certain improvements are not counted towards the project cap.

Funding is available for technical assistance; commissioning services; pre-qualified measures; custom electric efficiency measures; whole-building design; and LEED projects. Incentives are based on the predicted energy performance of the building design and are available on a first-come, first-served basis from January 4, 2012 through December 31, 2015. For details or additional information, see the current program solicitation at the program web site, shown above.

The program is funded by the New York's System Benefits Charge (SBC) and is only available to electricity and natural gas customers that pay this charge.

The NYSERDA Existing Facilities program merges the former Peak Load Reduction and Enhanced Commercial and Industrial Performance programs. The new program offers a broad array of different incentives to electricity and natural gas customers within the state that pay the System Benefits Charge (SBC). Energy service companies (ESCOs) that implement efficiency measures for eligible customers are likewise eligible. Both pre-qualified equipment rebates and performance based rebates are offered under this program, as described below. Projects with a simple payback greater than 18 years, or less than 1 year (or 6 months for manufacturing and data center projects) are not eligible for incentives.

Pre-qualified Measures
The pre-qualified equipment category is designed to support comparatively small electric and natural gas efficiency projects through fixed $/unit equipment rebates. The general technologies covered by the pre-qualified designation are as follows: lighting, HVAC, chillers, motors, variable frequency drives, interval meters, natural gas equipment, commercial washing equipment, commercial refrigeration, and commercial kitchen equipment. Pre-qualified applications should be sent within 90 days of the invoice for purchase and installation of the equipment. Incentives are limited to $30,000 per facility per year for electric efficiency incentives and $30,000 per facility per year for natural gas efficiency incentives.

Performance-based Incentives
This category of incentives is generally oriented towards large improvement projects. Performance incentives are available for electric efficiency, natural gas efficiency, energy storage, demand response, monitoring-based commissioning, and industrial and process efficiency (Industrial and Process Efficiency Program details). Performance incentives are awarded as one-time payments based on the expected first-year savings offered by a given improvement. Customers of downstate utilities (defined as Consolidated Edison and National Grid) are generally eligible for higher incentives than customers of other utilities. Each category of performance incentive is governed by a distinct set of eligibility limits, incentive limitations, equipment requirements, and other rules. Some of the basic program rules are described in the fields above this summary.

The general deadline for applications under this program is December 31, 2015, or until program funding is exhausted. Please consult the program website for additional rules and application information or see Program Opportunity Notice (PON) 1219 for additional program contacts.

Note: As of May 2, 2012, NYSERDA is no longer accepting Incentive Reservation Forms (IRFs). Owners that submitted an IRF prior to this date but did not receive an approval notice will be placed on a wait list, and will be notified if additional funding becomes available.

The Green Residential Building Program, administered by the New York State Energy Research and Development Authority (NYSERDA), offers incentives to residential building owners for the construction or substantial renovation of buildings that are built or permanently sited in New York State and meet certain green building requirements. The program is available to owners of buildings with 1 - 11 residential dwelling units that meet the minimum green building requirements and have a Certificate of Occupancy or Certification of Completion dated between January 1, 2010 and October 30, 2013.

An eligible building owner may be the developer or builder if the developer or builder holds title to the building on the date a Certificate of Occupancy is issued. The definition of what constitutes a substantial renovation is detailed, but in basic terms requires a whole building approach that involves building envelope improvements, installation or replacement of at least two of three major building systems (electrical, plumbing, and HVAC), and equipment (e.g., lighting, appliances) that meet or exceed program efficiency requirements.

Incentives under the program are offered at up to $3.75 per qualified occupied square foot but are capped according to the number of units in the building. Maximum incentives range from $5,125 for single family dwellings, up to $13,375 for an 11-unit multi-family residential dwelling. Building owners may receive up to $120,000 through the program per calendar year.

In order to qualify for incentives, buildings must meet the following requirements:

• Certification at the Silver level or higher, using the National Green Building Standard, or either the LEED for Homes or LEED for New Construction Rating Systems.
• Energy-efficient lighting and appliances must achieve at least 500 kWh of annual electric saving per dwelling unit
• Combustion appliances must have been tested for operational safety
• For low-rise (3 or fewer stories) with 4 or fewer dwelling units (including detached single family homes and townhouses), buildings must meet additional requirements for HERS rating, ventilation, HVAC system efficiency, and water heater efficiency.

Builders or contractors of residential green homes must have prior green building experience, hold professional certification in green building, or have completed a green building professional training course approved by NYSERDA. Owners apply for incentives once the building is substantially completed, a Certificate of Occupancy or a Certificate of Completion is issued, and the building has been certified under one of the qualified rating programs.

The program is funded by money raised through the auction of carbon emission allowances under the Regional Greenhouse Gas Initiative (RGGI). Applications will be accepted on a first-come, first-served basis through October 30, 2013 or until program funding is exhausted. The most recent NYSERDA RGGI Operating Plan does not contain specific levels of future funding for the program, but does indicate an intent to provide up to $2 million annually if sufficient revenue from emission auctions is available. Please visit the program web site or contact program managers for additional information.

The New York State Research and Development Authority (NYSERDA) offers an incentive to certain homeowners of 1-4 homes that participate in the Home Performance with Energy Star program. The program entitles the participant to a rebate of 10% of the cost of qualified high-efficiency Home Performance improvement measures up to a maximum of $3,000. The incentive may be combined with financing offered through the Green Jobs-Green New York (GJGNY) Financing Program. Customer and measure eligibility for the up-front High Efficiency Measure Incentive (HEMI) is slightly different than that for other Home Performance incentives (e.g., the GJGNY financing program). In terms of improvement eligibility, the HEMI is not available for some measures, including solar water heating, geothermal heat pumps, and wood pellet stoves. With respect to customer eligibility, it is available only to electric and gas customer's of the state's major investor-owned utilities (IOUs), gas customers of National Grid Long Island, and statewide for oil and propane customers. Please see the NYSERDA List of Eligible Measures and Accessories on the program web site for further details.

To initiate the program, a Comprehensive Home Assessment (CHA) must be performed by an approved Building Performance Institute (BPI) certified contractor, which may cost a small fee. In many cases the customer will be eligible for a reduced or no-cost home assessment based in part on their income level. After the CHA is performed, the borrower will work with the contractor to decide what improvements should be made. The list of possible improvements varies from home to home, but could include a variety of HVAC measures, improved sealing and insulation, appliance replacements, and lighting upgrades. For any improvements and replacement appliances, the borrower will sign a customer contract defining the improvements that will be made, costs, and payment terms. Following completion of the work, a Certificate of Completion will be sent to the program administrator for review and approval prior to the issuance of an incentive payment.

For further information on this program, please consult the program website or use the contact information provided below.

The New York State Energy Research and Development Authority (NYSERDA) offers the Industrial and Process Efficiency (IPE) Program to provide performance-based incentives to manufacturers and data centers implementing energy efficiency and process improvements that reduce energy costs. The goal of the IPE Program is to help manufacturers and data centers increase product output and data processing to make it as efficient as possible. Incentives are available for both electric and gas efficiency improvements at both existing facilities and in new construction. Facilities must pay into the System Benefits Charge (SBC) in order to be eligible for incentives. Incentives are pro-rated for customers that pay the SBC on less than 50% of their usage. Energy savings projects can fall into several different categories, including but not limited to the examples described below.

Process Efficiency

• Industrial and data center process improvements or new installations
• Capacity additions that improve the energy use per unit processed
• Quality improvement
• Waste and scrap reduction
• Throughput increase
• IT improvements

Energy Efficiency

• Energy recovery from an industrial process
• Space conditioning improvements
• Pumping system improvements
• Compressed air efficiency
• Fluid and support system improvements

Operational and Maintenance

• Compressed air system leak management
• Replacement of leaking steam traps
• Installation of cogged styles fan belts
• Burner tune-up
• Server power management
• Air flow controls optimization
• Dynamic temperature monitoring and adjustment

Incentives are provided on the custom application of commercially available technology. Each project will be unique based on the applicant's needs and site-specific process. Energy savings incentives are based on one full year of energy savings. For productivity improvements, the energy savings will be calculated by determining energy use per unit of production or workload before and after the improvement, and multiplying the difference by the new output.

NYSERDA also offers incentives for certain pre-qualified measures and performance incentives for other electric efficiency, gas efficiency, and demand response through the parent Existing Facilities program. Facilities may apply either on their own behalf or through their designated applicant. Funding is available on a first-come, first-served basis and is available through December 31, 2015. Interested parties may visit the program website or use the contact information below to find out more information about this program.

Note: Under the American Recovery and Reinvestment Act (ARRA) of 2009, the U.S. Department of Energy (DOE) is providing a total of $300 million to U.S. states, U.S. territories and the District of Columbia to establish rebate programs for new energy-efficient appliances that replace existing appliances in homes. This program was established in order spend out funds remaining from the residential rebate program. The program will be available through February 1, 2013 or until funds are exhausted.

New York is offering rebates to government entities for the purchase and installation of certain energy efficient appliances and power strips. Governments having received a direct ARRA Energy Efficiency Conservation Block Grant do not qualify for the program. A list of eligible governments is available on the program web site. Energy Star equipment purchased on or after September 25, 2012 is eligible for a 75% rebate. Rebates are limited to $4,999 per item and $20,000 per eligible government.  A minimum of 10 CFLs, 10 LEDs, and/or a minimum of 2 power strips must be purchased in order for those items to be eligible for a rebate. Incentives from this program may not be combined with incentives offered by utility companies or municipalities, although they may be combined with manufacturer incentives and retail promotions. Applications are available online, and will be available until February 1, 2013 or until funds are exhausted.

New York Power Authority (NYPA) provides energy efficiency improvements to eligible public sector organizations at no up-front cost. A range of energy efficient upgrades are available through Energy Services Programs for Public Entities. This program covers the initial costs of purchasing and installing energy efficient measures for schools and other public entities served by NYPA. Participating entities must be located in the state of New York. Energy savings generated from the project will repay the up-front investment. Eligible entities include: 

• K-12 Schools
• Colleges and Universities
• Local Governments
• State Government
• Water and Wastewater Treatment Facilities
• Healthcare Facilities

The program evaluates eligible facilities and offers solutions for increased energy savings. Generally, the program focuses on comprehensive energy efficiency gains through a variety of solutions, from the traditional energy conservation measures such as high efficiency lighting to the integration clean energy technology. NYPA covers the up-front project costs and recovers this investment by sharing the resulting energy savings with the participating entity. Participating entities retain all energy savings after the repayment process is completed. Contact NYPA for more information on program guidelines and eligibility.

Note: In April 2012 the New York Public Service Commission (PSC) issued an order increasing the 2012 program budget by $1.5 million, which would increase 2012 program funding from $2.9 million to $4.4 million. If previously established funding levels are maintained, this allocation would also increase total program funding from $13.8 million to $15.3 million through 2015. The funding change has not yet been reflected in the program documents and the order does not identify whether program funds set aside for small wind systems will be adjusted as well. This summary will be revised if and when such an adjustment is made.

The New York State Energy Research and Development Authority (NYSERDA) provides incentives for eligible small wind systems. Incentive payments are not paid directly to the owner of the wind system. Instead, they are paid to eligible installers that have been approved to participate in this program, but the entire incentive must be passed on to the owner of the wind system by the eligible installer. Installers are generally limited to having 10 open applications at any given time under the current program (PON 2439) or previous programs (see PON 2439 for information on exceptions to this rule).

This program is offered as part of the Customer-Sited Tier of the state renewable portfolio standard (RPS) program. Consequently, only customers of electricity distribution utilities that collect the RPS surcharge -- Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, National Grid, Orange and Rockland Utilities, Inc. and Rochester Gas and Electric Corporation -- and who pay the RPS surcharge on their electric bills are eligible for program incentives. Systems installed under third-party ownership arrangements are eligible for the program provided the host customer pays the RPS surcharge and contractual arrangement between the host and system owner passes the entire incentive along to the customer.

As of this writing, NYSERDA has identified a total of 28 wind system models made by 17 different manufacturers as being eligible for the incentive. The currently eligible models (this may change over time) range in size from 920 W to 243 kilowatts (kW rating at 11 m/s) although a customer may receive incentives for systems of up to 2 MW per site/customer. Systems are also limited to the capacity needed to meet 110% of historic on-site consumption. Customers eligible for remote net metering under a utility tariff may submit information on satellite accounts for the purpose of increasing the system size limit implied by this restriction. The incentive itself is based on the expected annual energy output of the system as calculated by the New York State Small windExplorer*, as follows:

• Tier I (first 10,000 kilowatt-hours (kWh) of annual energy output): $3.50/annual kWh ($35,000 maximum)
• Tier II (next 115,000 kWh of annual energy output): $1.00/annual kWh ($150,000 maximum)
• Tier III (annual energy output above 125,000 kWh): $0.30/annual kWh

The incentives are additive, such that a wind turbine which is expected to produce 125,000 kWh annually receives the maximum Tier I incentive ($35,000 at 10,000 kWh) plus $1.00/annual kWh for up to 115,000 kWh through Tier II ($115,000 maximum), leading to a total maximum incentive of $150,000 ($35,000 + $115,000). Tier III systems receive the maximum Tier I and Tier II incentives ($150,000 total) plus $0.30/annual kWh for annual energy production in excess of 125,000 kWh. Incentives are capped at the lesser of $400,000 per site/customer or 50% of installed system costs.

All systems must be new and grid-connected. Equipment eligibility restrictions also exist for power inverters, monitoring equipment, and other system components. In addition, various siting criteria, such as setbacks from residences and hub height above nearby obstacles, apply to all systems.

Incentives are paid in two installments. Sixty-five percent (65%) of the incentive is paid after the equipment is delivered to the installation site and all required permits, approvals, certificates, etc. from all jurisdictions having authority are secured. The remaining thirty-five (35%) is paid when the wind system is grid-connected and approved by your utility. NYSERDA reserves the right to review any installation prior to final incentive payment being made.

The current solicitation has a program budget of $15.3 million through December 31, 2015 (including a $1.5 million addition in funding during 2012), with somewhat variable annual budgets. A total of $5.8 million in funding is set aside for systems with a rotor swept area of 200 square meters or less. The set-aside will be enforced for the first three quarters of each year, with any remaining funding returned to the general fund available for all turbines during the fourth quarter. Incentives provided to customers under this program may not be combined with any other incentive programs offered by NYSERDA that are designed to directly offset the cost of a wind installation. NYSERDA counts the environmental attributes associated with energy production by funded systems towards the state RPS target for the life of the system. For further program details, including application materials and information on additional requirements, visit the program web site listed at the top of this page.

*While building-mounted systems are potentially eligible for incentives under this program, program literature notes that this tool is not appropriate for building-mounted systems or those installed in an urban environment. For such systems, the installer must provide a detailed analysis of wind resources and expected energy output.

Note: In April 2012 the New York Public Service Commission (PSC) issued an order amending the incentive limitations for non-profit, school, and municipal PV systems. The order essentially removes the separate incentive classification for non-profit, school, and municipal PV systems and instead treats these systems as "non-residential" in nature. This has the effect of doubling the maximum incentive for projects of this type from $37,500 (based on a 25 kilowatt (kW) limit on incentives per site/meter) to $75,000 (based on a 50 kW limit on incentives per site/meter).

The New York State Energy Research and Development Authority (NYSERDA) provides an incentive of $1.50 per watt (DC) to eligible installers for the installation of approved, grid-connected photovoltaic (PV) systems. Customers who pay the state's RPS charge are eligible to participate in the PV Incentive Program. These include customers of the following utilities: Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, and Rochester Gas and Electric Corporation. Total incentives may not exceed 40% of the installed project cost after any available tax credits.

The maximum capacity supported by the program is 7 kilowatts (kW) for residential systems and 50 kW for non-residential systems. Larger systems are eligible for incentives, but incentives may only be received for installed capacity up to the program caps. Incentives are only available to eligible installers, and incentives must be passed on in full to customers. PV systems must be sized to meet specific site energy needs (local load or demand) and may not exceed 110% of the demonstrated energy demand for the site, taking into account any other on-site electrical power generation systems. Incentive levels will be reduced in proportion to potential output losses of greater than 20%. NYSERDA will hold the title to renewable energy credits (RECs) associated with the system's energy production for a period of three years, after which REC ownership will revert to the customer/generator.

Installer eligibility will be determined and maintained based on factors such as acceptance of all program terms and conditions, training, installation experience, track record related to utility interconnections, overall performance, monitoring, customer references, customer satisfaction, and commitment to become certified through a national certification program. NYSERDA is providing accredited training opportunities for PV installers to the greatest extent possible. Training opportunities are posted on NYSERDA's Renewable Energy Training web site. Beginning June 30, 2011 all installers must be NABCEP certified in order to qualify for the program. The program web site (listed above) provides a list of more than 125 fully eligible installers and many others with provisional approval.

Once eligible, installers reserve incentives for approved systems for specific customers on a first-come, first-served basis for as long as funds are available within the monthly budgets. Applications are limited to 800 kW per eligible installer company per month. This limit applies to the total number of applications from one installer company, even if the company employs more than one eligible installer. Prior to installing a PV system, contractors must provide customers with information and basic assistance in understanding possible energy efficiency improvements and benefits, although energy efficiency measure installation is not required for program participation.

Incentives are paid to installers in two increments and are tied to specific installation milestones. The first incentive payment, or 75% of the total incentive amount approved by NYSERDA, will be paid after all system components have been delivered to a customer’s site and the appropriate form is completed, submitted and approved by NYSERDA. The second incentive payment, or the remaining 25%, will be paid after a PV system has been connected to the utility grid and/or inspected by NYSERDA or its representatives and the appropriate form has been completed, submitted and approved by NYSERDA.

During 2008 and 2009, the published program budget totaled $75.3 million**, and the PSC later authorized additional interim funding of $2 million per month to allow the program to continue from through June 2010. The program formerly accepted applications from eligible installers on a continuous basis, but the program now adheres to a monthly budgets and applications that exceed the budget will not be accepted. The total 2010-2015 budget is $175 million, including the interim funding from the first half of 2010 and additional funding allocations of $31.1 million made during 2012 for the 2012 and 2013 program years. The 2012 funding additions stem from New York's NY-Sun Initiative, which sets a goal of quadrupling 2011 annual PV capacity installation within the state by 2013.

*In April 2012 the PSC issued two separate orders affecting the funding and operation of the PV Incentive program. The PSC's April 20, 2012 Order authorized the reallocation of $17.6 million in unencumbered funds to the program, increasing total 2012 funding from $24 million to $41.6 million. The PSC's April 24, 2012 Order provided additional funding of $13.5 million for the 2013 program year, increasing total 2013 funding from $24 million to $37.5 million. The orders also increase the monthly program budget, formerly set at $2 million per month, to accommodate the additional funding for 2012 and 2013 in an even manner.

**The original 2007 - 2009 Customer-Sited Tier Operating Plan authorized $13.8 million for this program during 2008 and 2009. However, discretionary funding amounting to $4.4 million was later added in order to meet program demand. Supplements of $20.6 million in October 2008 and $21.5 million (NYSERDA reallocation) were made through February 2009 in order to keep the program open. Finally, an additional $15 million in program funding was authorized in June 2009 by order of the PSC, bringing total 2008-2009 funding to $75.3 million. The June 2009 PSC order contains a detailed description of this progression.

The New York State Energy Research and Development Authority (NYSERDA) offers incentives for the installation of solar water heating systems to residential and non-residential customers of the state's major investor-owned utilities. The program is part of the Customer-Sited Tier (CST) of the state renewable portfolio standard (RPS) affecting electric utilities, thus systems must generally supplement an electric water heater in order to qualify for the program. Both existing buildings and new construction are eligible for incentives. Otherwise eligible customers that use a fossil fuel (propane, natural gas, or oil) for water heating may be eligible for a small amount of non-RPS funding (contact NYSERDA for details and information on funding availability).

Incentives are based on the amount of electricity displaced by the solar water heating system. The incentive is set at $1.50 per annual kilowatt-hour (kWh) displaced, up to $4,000 for residential systems and $25,000 for non-residential systems. Though no specific limits on system size are identified, incentives are only available for the amount of displaced kWh that does not exceed 80% of calculated existing thermal load. Systems that displace higher percentages of thermal load may be eligible for funding, but the incentive would be capped at the 80% displacement level. The value for kWh displaced is based on the SRCC OG-300 estimate of system production and/or standard industry software such as RETScreen, or SolarPathfinder thermal program. The installer must analyze each system for energy production losses associated with shading, system orientation, tilt, etc. and provide this information to NYSERDA with the application. Incentive levels may be revised every two months based on program demand and market conditions.

Installers of eligible systems must be pre-approved by NYSERDA. As of June 30, 2012 approval requires certification by the North American Board of Certified Energy Practitioners (NABCEP). In addition to the installer requirements, there are also a variety of equipment requirements for eligible systems. Installers must perform a Clipboard Energy Audit for all residential (1-4 family homes) participants in the program, conduct a debriefing with the homeowner describing ways in which electricity use could be reduced, and provide the homeowner with information on NYSERDA and utility energy efficiency incentive programs, For non-residential participants, installers must provide information on the Energy Star Portfolio Manager Benchmarking Tool, assist the building owner in entering utility information into the tool (if desired), and provide information on NYSERDA and utility energy efficiency incentive programs.

A total of roughly $25 million is available for incentives through December 31, 2015, funded from the RPS surcharge on customer electricity bills. Please see Program Opportunity Notice 2149 (PON 2149), listed as the program web site at the top of this page, for further information on the program.

Central Hudson Gas & Electric's (Central Hudson) Commercial Lighting Rebate Program is for businesses, retailers, institutional customers and non-profit customers of Central Hudson. The progam utilizes the services of Lime Energy to install new lighting fixtures with Central Hudson covering up to 70% of the cost. The 30 percent of cost remaining can be financed at 0% interest through Central Hudson.  Eligible fixtures include fluorescent systems, high-pressure sodium, metal halide, certain LED fixtures and exit signs. After installation, a Central Hudson representative will inspect the project based on the quality assurance plan at completion to verify that the upgrade matches the performance specified in the auditor’s proposal. Incentives for this program will be offered until funds are depleted.

The Home Energy SavingsCentral Program offers customers rebates of between $25 and $600 for energy efficient equipment and measures. This is for residential electric customers who upgrade heating, cooling or ventilation systems with specific types of energy efficient equipment. These rebates include efficient central air conditioners, central air-source heat pumps, electric heat pump water heaters, furnace blower fans, programmable thermostats, refrigerator recycling and duct and air sealing (with blower door and duct blaster testing).  Rebates for the following types of natural gas equipment are available as well: natural gas furnaces, natural gas boilers, boiler reset controls, steam boilers, and indirect water heaters. Contact Central Hudson Gas & Electric for more information on these programs.

The Business Energy SavingsCentral program is for non-residential gas customers of Central Hudson. This includes businesses, local governments, not-for-profits, private institutions, public and private schools, colleges, and healthcare facilities. The program primarily focuses on providing incentives for energy efficient gas heating measures, however water heaters and programmable thermostats are also available.

The program offers rebates on furnaces, water boilers, steam boilers, boiler reset controls, indirect water heaters, and programmable thermostats. Some incentives vary based upon the efficiency of the installed equipment. Customers must use a qualified SavingsCentral Trade Ally to be eligible for incentives. These contractors may be found on the program web site. View the program rebate form for specific information on equipment, procedures and eligibility. This and other information can be found on the program web site listed above.

The Home Energy SavingsCentral Program offers customers rebates of up to $700 on energy efficient equipment and measures for residential gas customers who upgrade heating, cooling or ventilation systems with specific types of energy efficient equipment. Natural gas rebates apply to water heaters, natural gas boilers, steam boilers, boiler controls, furnaces, programmable thermostats, and duct and air sealing (with blower door and duct blaster testing). A variety of rebates are also available for electric customers. Rebates for the electric Home Energy SavingsCentral Program include air conditioners, air-source heat pumps, ECM furnace fans, heat pump water heaters, programmable thermostats, duct sealing, air sealing, and an air conditioner exchange incentive. Contact Central Hudson Gas and Electric for more information on these programs. Rebate forms and instructions are available on the program web site listed above.

Con Edison offers New York Commercial electric customers a rebate program for energy efficient equipment in buildings inside the eligible service area. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments. Customers can schedule an energy efficiency survey to begin the program.

The Commercial and Industrial Equipment Rebate and Commercial and Industrial Custom Efficiency Programs offer incentives to directly metered electric customers in good standing who contribute to the system benefits charge (SBC). Incentive payments are limited to a simple payback period of one year for commercial projects and six months for industrial projects. Proposed custom incentive projects will be required to pass a cost-effectiveness test. Additionally, small businesses are eligible for direct-install incentives through Con Edison. This offering is separate from the standard commercial and industrial offerings and is only available to commercial customers with a monthly peak demand of 100 kw or less.

In May 2011, Con Edison Company began to provide financial incentives for energy efficiency specifically to defer or avoid transmission and distribution capital expenditures. This targeted demand side management program provides financial incentives to demand side management providers, and was approved up to $25 million a year for four years with the goal of attaining 100 MWs of permanent load reduction.

Con Edison offers New York Multifamily electric customers a rebate program for energy efficient cooling and lighting equipment in 5-75 unit buildings in the eligible service area. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments. All equipment must meet program efficiency requirements in order to qualify for rebates. Customers can schedule an energy efficiency survey to begin the program. Contact Con Edison for further information on this offering. 

Con Edison is offering the Residential HVAC Electric Rebate Program. Through this program, incentives are offered on energy efficient heating and cooling equipment for residences in the eligible service area. Service addresses that have one to four residential dwelling units may participate in the program. Eligible measures and equipment include central air conditioning units, heat pumps, water heaters, weatherization measures, and thermostats. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments.

Additionally, rebates are provided for recycling refrigerators, freezers, room air conditioning units and for energy surveys. View the program web site for eligibility and instructions on how to have a secondary, working unit picked up. Contact Con Edison for more information on these programs. 

Con Edison offers New York Commercial natural gas customers a rebate program for energy efficient equipment in buildings inside the eligible service area. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments. Customers can schedule an energy efficiency survey to begin the program.

The Commercial and Industrial Equipment Rebate and Commercial and Industrial Custom Efficiency Programs offer incentives to gas customers in good standing who contribute to the system benefits charge (SBC). Incentive payments are limited to a simple payback period of one year for commercial projects and six months for industrial projects. Proposed custom incentive projects will be required to pass a cost-effectiveness test.

In May 2011, Con Edison Company began to provide financial incentives for energy efficiency specifically to defer or avoid transmission and distribution capital expenditures. This targeted demand side management program provides financial incentives to demand side management providers, and was approved up to $25 million a year for four years with the goal of attaining 100 MWs of permanent load reduction. Contact Con Edison for additional information on these programs.

Con Edison is offering a Multifamily Natural Gas Heating Rebate Program. Through this program, incentives are offered on energy efficient heating equipment for 5-75 unit buildings in the eligible service area. Eligible measures and equipment include furnaces, water boilers, steam boilers, boiler controls, indirect water heaters, energy management systems, and programmable thermostats. Additionally, certain "in-unit" upgrades are eligible for additional rebates or may be offered for free. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments. Contact Con Edison for more information on these programs. 

Con Edison is offering the Residential HVAC Gas Rebate Program. Through this program, incentives are offered on energy efficient heating and cooling equipment for residences in the eligible service area. Service addresses that have one to four residential dwelling units may participate in the program. Eligible measures and equipment include furnaces, water boilers, steam boilers, boiler controls, indirect water heaters, duct/air sealing, and programmable thermostats. All equipment must be installed by a participating contractor and installations may be inspected before incentive payments. Contact Con Edison for more information on this program.

Long Island Power Authority offers a variety of incentives for its non-residential customers to increase the energy efficiency of facilities through the Commercial Efficiency Program. Major renovations of existing buildings and new construction projects are both eligible for this program, with new construction incentives being slightly reduced compared to existing building incentives. There are several paths to choose from in the program, each one designed to fit the needs of a particular customer.

• The Prescriptive Approach offers rebates on a pre-qualified list of energy-efficient equipment including lighting, compressed air, kitchen equipment, variable frequency drives, and HVAC equipment.
• The Custom Approach provides funding for more complex energy-saving measures, perhaps measures unique to the building or business, which are not covered under the prescriptive approach.
• The Green Building Approach allows businesses to pursue options that fully integrate building envelope and operating systems to produce a building as energy efficient as current technology and design allows.

Incentives will cover a portion of the additional design and equipment expenses required to create an exemplary building. For customers exploring the custom approach or the whole building design approach LIPA will provide up to $10,000 in technical assistance services, including consultants to help businesses choose and implement energy-efficient measures and equipment. For more complex projects, LIPA will provide 50 percent of any additional planning costs, up to $50,000. Follow all steps on rebate applications if pursuing incentives.

LIPA offers its customers rebates for grid-connected photovoltaic (PV) systems as part of the Solar Pioneer and Solar Entrepreneur programs. Residential PV systems up to 25 kW and non-residential PV systems up to 2 MW (the limits of LIPA's net metering policy) are eligible for an incentive ranging from $1.30 - $1.75 per watt depending on the customer sector. The program has historically only been available for customer-owned systems, rendering third-party owned systems ineligible for incentives. However, the program rules have recently been changed to allow residential systems installed under third-party ownership arrangements (i.e., power purchase agreements or leases) to qualify for incentives.

Systems should generally be sized so as not to exceed annual electricity consumption. Rebate amounts will be limited to the amount dictated by a system sized to produce no more than 105% of on-site electricity consumption during the prior 12 months. Rebates are only provided for the first 10 kW on residential systems and the first 100 kW on non-residential systems (commercial, gov't, schools, and non-profits). Pre-approvals of non-residential applications are limited to 100 kW per customer per 12-month period in total. Multiple applications are accepted as long as the combined capacity does not exceed 100 kW. The program also has a lifetime limit of 100 kW per account number. LIPA's rebates are designed to reflect the current PV costs. The rebate may not exceed the lesser of 50% of installed system costs for residential and business-owned systems, 65% for municipal and non-profit systems, or the incentive value as determined by the rebate schedule. The installed costs are defined as the PV system cost to the customer minus any government grants or subsidies.

The most recently published rebate levels offered by the program are as follows:

• Residential (customer-owned): $1.75/watt DC for first 10 kW
• Residential (third-party owned): $1.50/W DC for first 10 kW
• Commercial: $1.30/watt DC for first 100 kW
• Gov't, Schools, Nonprofits: $1.75/watt DC for first 100 kW

Schools, not for profit, and government facilities receive higher rebates to help compensate for tax incentives available to residential and commercial customers. For the additional incentive, proof of non profit (501(c)3) or equivalent status is required and tax credits/depreciation cannot be applied for the PV installation. All equipment must meet the minimum technical, warranty, and installation requirements established by LIPA. The program has a $100 non-refundable application fee.

History
LIPA launched the Solar Pioneer Program in 2000 as part of the utility's five-year Clean Energy Initiative -- a $32 million commitment to developing clean energy alternatives. In May 2003, LIPA announced that it would extend its Clean Energy Initiative for another five years and increase funding levels by $5 million per year, to an annual investment of $37 million and a total investment of $185 million. Under the Efficiency Long Island Program (which replaces the Clean Energy Initiative) budgets have exceeded this investment level, with total efficiency and renewables budget of $120 million for 2013.

In recent years the solar rebate program has been expanded with the addition of rebates for large commercial systems. The large commercial program is called the Solar Entrepreneur program. With the addition of the Solar Entrepreneur program, the overall program budget has increased dramatically, to more than $28 million in 2013. LIPA has reportedly issued rebates for more than 3,300 PV systems over the 10-year life of the program. Past reports indicate an average PV system size of approximately 5.9 kW.

Long Island Power Authority offers a variety of incentive programs which help residential customers upgrade to more energy efficient equipment and appliances in their homes. The Cool Homes Program provides rebates for both homeowners and contractors for  the installation of energy efficient central air conditioning systems and air-source heat pumps. The Geothermal Energy Program provides rebates for new and replacement geothermal heat pumps.  Prescriptive rebates are also available a wide range of efficient appliances and products including:

• Lighting fixtures
• Refrigerators
• Dehumidifiers
• Room air conditioners
• Recycling of old appliances and equipment
• Pool Pumps
• Furnace Fan Motors

Additional rebates are available through the Home Performance with Energy Star Program.  This program provides incentives for for insulation upgrades, ventilation installation and repair, window and door replacements, wiring upgrades, and water heaters.  For specific program details including rebate amounts, equipment requirements, and guidelines, visit the Long Island Power Authority website of contact the utility directly.

 

Note: The program web site listed above is for the residential wind energy program; however, LIPA also offers incentives for non-residential wind energy installations.

The Long Island Power Authority (LIPA) offers rebates to its residential and commercial electric customers -- including non-profits, schools, and governments -- for the installation of grid-connected wind energy systems. It is part of the broader LIPA Efficiency Long Island Program, which also offers residential and commercial incentives for energy efficiency improvements and solar energy systems. In order to qualify for an incentive, the electric customer must own the wind energy system; leased systems are not eligible for incentives.

Rebate amounts are generally based on expected annual energy production in kilowatt-hours (kWh). System size is limited to that needed to provide no more than 105% of customer energy demand during the prior 12 months. System size is also limited by the applicable, residential, farm service or non-residential limits of LIPA's net metering tariff. Thus maximum possible system size is 500 kW for a farm-service customer, 2 MW for a non-residential customer, and 25 kW for a residential customer. Rebate amounts will be calculated as the lesser of 60% of the installed system costs or the amount resulting from the following formulas:

• Residential: $3.50 per annual kWh up to a maximum of 16,000 kWh.
• Commercial: $3.50 per annual kWh up to 16,000 kWh and $0.50 per annual kWh for energy production between 16,000 kWh and 175,200 kWh.
• Gov't, Schools, Nonprofits: $4.50 per annual kWh up to 16,000 kWh and $1.50 per annual kWh for energy production between 16,000 kWh and 101,333 kWh.

As described above, the incentive for governments, schools, and non-profits is essentially the commercial incentive with an added $1.00 kWh bonus. All systems must come from LIPA's list of eligible wind energy systems and be installed in accordance with the applicable local, state, and national codes and standards, including the state of New York's standard interconnection requirements. All projects must be pre-approved by LIPA in order to qualify for a rebate, which will be paid in two phases. The first phase pays 65% of the total rebate upon system installation while the second phase pays the remaining 35% one year after installation based on annual performance and output.
 

The 2013 budget for the small wind rebate program is $817,000. LIPA has furnished a customer checklist on the program web site to help guide consumers and installers through the rebate process. Prospective applicants should consult this checklist prior to making any project decisions.

In conjunction with NYSERDA's Existing Facilities Program, National Fuel provides an energy efficient equipment application for custom and standard rebates. Eligible equipment includes boilers, furnaces, unit heaters, infrared heaters, programmable thermostats and a variety of cooking equipment. These rebates are available for non-residential customers using less than 12,000 cubic feet of natural gas per year. Rebates are available up to $25,000 for commercial entities. Measures must be installed by a qualified contractor. Contact National Fuel for more information on this program.

NYSEG and RG&E offer rebates to non-residential customers installing energy efficient equipment that have an electricity Systems Benefits Charge (SBC) included in their energy bills. Both prescriptive rebates and custom incentives are available. These rebates are being offered due to the June 2008 New York State Public Service Commission order to meet New York's Energy Efficiency Portfolio Standard. The goal is to reduce statewide energy use 15% by 2015.

Custom incentives are available when energy efficiency improvements require site-specific engineering and cost analysis. Any nonresidential NYSEG or RG&E electricity customer is eligible, and customers can select their own contractor to install equipment.

If standard rebate or custom projects meet the eligibility requirements specified on the individual application forms, then participants should submit equipment specification sheets, equipment inventory sheets, building plans and invoices with the application. NYSEG or RG&E may require a pre-installation inspection. After approval of the application, NYSEG or RG&E will authorize payment in 6-8 weeks. Pre-approval is required for all custom applications, and for standard rebate applications of more than $10,000.

Ensave Agricultural Incentives are determined by Ensave on a case by case basis.  Participants can contact Ensave to learn which equipment qualifies and how much of a rebate they can receive.  Customers must provide equipment quotes and an equipment invoice, and pre/post-installation site inspections may be required.  Free engine block heater timers are available for up to four farm vehicles.  The program is open to any NYSEG or RG&E nonresidential customer who pays the System Benefit Charge (SBC) on their bills.

NYSEG is offering residential electric customers rebates for recycling refrigerators, and its multifamily customers free CFLs and 50% off common area lighting equipment. All equipment requirements must be met in order to receive rebates. See the program website for details or call for refrigerator pick-up or lighting rebates.

NYSEG offers a lighting incentive program designed to serve small business customers with a demand of 100 kilowatts (kW) or less. These small business customers may schedule a free energy assessment and then receive a 70% discount on the installed cost of recommended lighting measures. Eligible lighting measures include the retrofitting of fluorescent fixtures, replacement of upgrades from incandescent bulbs with compact fluorescent bulbs, and the replacement changing of illuminated exit signs with light emitting diode (LED) signs. Small business customers must schedule a free energy assessment before any recommendations or incentives can be offered. Customers can view the program web site listed above or call 1-877-359-9814 to schedule an appointment.

NYSEG and RG&E offer rebates to non-residential customers installing energy efficiency equipment that pay a natural gas Systems Benefits Charge (SBC). Both prescriptive rebates and custom incentives are available. These rebates are being offered due to the June 2008 New York State Public Service Commission order to meet New York's Energy Efficiency Portfolio Standard. The goal is to reduce statewide energy use by 15% by 2015.

Custom incentives are available when energy efficiency improvements require site-specific engineering and cost analysis. Any nonresidential NYSEG or RG&E electricity customer regardless of size is eligible, and customers can select their own contractor to install equipment.

If standard rebate or custom projects meet the eligibility requirements specified on the individual application forms, then participants should submit equipment specification sheets, equipment inventory sheets, building plans and invoices with the application. NYSEG or RG&E may require a pre-installation inspection. After approval of the application, NYSEG or RG&E will authorize payment in 6-8 weeks. Pre-approval is required for all custom applications, and for standard rebate applications of more than $10,000.

Ensave Agricultural Incentives are determined by Ensave on a case by case basis. Participants can contact Ensave to learn which equipment qualifies and how much of a rebate they can receive. Customers must provide equipment quotes and an equipment invoice, and pre/post-installation site inspections may be required. Free engine block heater timers are available for up to four farm vehicles. The program is open to any NYSEG or RG&E nonresidential customer who pays the System Benefit Charge (SBC) on their bills.

NYSEG is offering residential natural gas customers rebates for installing energy efficient equipment.  Customers can complete one rebate application for multiple pieces of equipment as long as they are not the same type of equipment. Most products must be installed using a licensed contractor or a contractor that can supply either a Federal ID number, a Certificate of Insurance or a Business Certificate. Customers can refer to the ENERGY STAR Web site for tips on how to find the right contractor.

An online rebate reservation system is used to ensure program funds are not overextended. All new rebate requests must first be reserved in the rebate reservation system to be valid. The program will automatically close once all available program funding has been accounted for by online rebate reservations.

Orange and Rockland Utilities (O&R) offers a simple energy efficiency rebate program for small businesses in New York. The O&R Big Energy Solutions program is designed to encourage commercial and industrial customers to install high-efficiency equipment in eligible facilities. All New York commercial and industrial customers that have an active electric account with Orange & Rockland, contribute to the System Benefit Charge (SBC) and are installing the energy efficient electric measures in an existing facility are eligible to participate in this program. O&R will pay up to 50% of the total cost of prescriptive measures.

O&R also offers a custom incentives offering. Contact O&R for more information on this incentive program. Applications are on the web site, above. For more information about Demand Response programs, contact Program Administrator Steve Orman.

Orange and Rockland Utilities provides rebates for residential customers for recycling older, inefficient refrigerators and freezers. All appliances must meet the program requirements listed on the program web site. For more information call 1-877-852-5678.

Orange and Rockland Utilities provides rebates for residential customers purchasing energy efficient natural gas equipment. Rebates exist for furnaces, water boilers and controls, steam boilers, water heaters, thermostats, and air sealing. Equipment minimum requirements must be met in order to qualify for rebates.  For boilers and furnaces, equipment with higher efficiency levels will be awarded higher rebates.  Visit the program website or contact the utility directly for more information. 

NYSEG and RG&E offer rebates to non-residential customers installing energy efficient equipment that have an electricity Systems Benefits Charge (SBC) included in their energy bills. Both prescriptive rebates and custom incentives are available. These rebates are being offered due to the June 2008 New York State Public Service Commission order to meet New York's Energy Efficiency Portfolio Standard. The goal is to reduce statewide energy use 15% by 2015.

Custom incentives are available when energy efficiency improvements require site-specific engineering and cost analysis. Any nonresidential NYSEG or RG&E electricity customer is eligible, and customers can select their own contractor to install equipment.

If standard rebate or custom projects meet the eligibility requirements specified on the individual application forms, then participants should submit equipment specification sheets, equipment inventory sheets, building plans and invoices with the application. NYSEG or RG&E may require a pre-installation inspection. After approval of the application, NYSEG or RG&E will authorize payment in 6-8 weeks. Pre-approval is required for all custom applications, and for standard rebate applications of more than $10,000.

Ensave Agricultural Incentives are determined by Ensave on a case by case basis. Participants can contact Ensave to learn which equipment qualifies and how much of a rebate they can receive. Customers must provide equipment quotes and an equipment invoice, and pre/post-installation site inspections may be required. Free engine block heater timers are available for up to four farm vehicles. The program is open to any NYSEG or RG&E nonresidential customer who pays the System Benefit Charge (SBC) on their bills.

RG&E is offering residential electric customers rebates for recycling refrigerators, and multifamily customers free CFLs and 50% off common area lighting equipment. All equipment requirements must be met in order to receive rebates. See the program website for details or call for refrigerator pick-up or lighting rebates. Contact RG&E for more information on this offering.

RG&E offers a lighting incentive program designed to serve small business customers with a demand of 100 kilowatts (kW) or less. These small business customers may schedule a free energy assessment and then receive a 70% discount on the installed cost of recommended lighting measures. Eligible lighting measures include the retrofitting of fluorescent fixtures, replacement of incandescent bulbs with compact fluorescent bulbs, and switching out illuminated exit signs with light emitting diode (LED) signs. Small business customers must schedule a free energy assessment before any recommendations or incentives can be offered. Customers can view the program website listed above or call 1-877-359-9814  for more information or to schedule an appointment.

NYSEG and RG&E offer rebates to non-residential customers installing energy efficiency equipment that pay a natural gas Systems Benefits Charge (SBC). Both prescriptive rebates and custom incentives are available. These rebates are being offered due to the June 2008 New York State Public Service Commission order to meet New York's Energy Efficiency Portfolio Standard. The goal is to reduce statewide energy use by 15% by 2015.

Custom incentives are available when energy efficiency improvements require site-specific engineering and cost analysis. Any nonresidential NYSEG or RG&E electricity customer regardless of size is eligible, and customers can select their own contractor to install equipment.

If standard rebate or custom projects meet the eligibility requirements specified on the individual application forms, then participants should submit equipment specification sheets, equipment inventory sheets, building plans and invoices with the application. NYSEG or RG&E may require a pre-installation inspection. After approval of the application, NYSEG or RG&E will authorize payment in 6-8 weeks. Pre-approval is required for all custom applications, and for standard rebate applications of more than $10,000.

Ensave Agricultural Incentives are determined by Ensave on a case by case basis. Participants can contact Ensave to learn which equipment qualifies and how much of a rebate they can receive. Customers must provide equipment quotes and an equipment invoice, and pre/post-installation site inspections may be required. Free engine block heater timers are available for up to four farm vehicles. The program is open to any NYSEG or RG&E nonresidential customer who pays the System Benefit Charge (SBC) on their bills.

RG&E is offering residential natural gas customers rebates for installing energy efficient equipment. Customers can complete one rebate application for multiple pieces of equipment as long as they are not the same type of equipment. Most products must be installed using a licensed contractor or a contractor that can supply either a Federal ID number, a Certificate of Insurance or a Business Certificate. Customers can refer to the ENERGY STAR Web site for tips on how to find the right contractor.

An online rebate reservation system is used to ensure program funds are not overextended. All new rebate requests must first be reserved in the rebate reservation system to be valid. The program will automatically close once all available program funding has been accounted for by online rebate reservations.

Note: The federal government has imposed and updated appliance efficiency standards through several legislative acts,* and now has standards in place or under development for 30 classes of products. In general, states which had set standards prior to federal action may enforce their own standards until the federal standards take effect. States that had not set standards prior to federal action must use the federal standards. This summary addresses (1) state appliance standards that will be in place until the federal standards take effect and (2) products for which the federal government is not currently developing an efficiency standard. Much of the information in this summary comes from the Appliance Standards Awareness Project (ASAP). Visit the ASAP web site for comprehensive information about appliance standards.

New York appliance efficiency standards legislation, enacted in 2005, covers the following products offered for sale in New York not preempted by federal standards as of August 2011:

1. Consumer audio and video products
2. Digital television adapters
3. Commercial hot food holding cabinets
4. Portable electric spas
5. Residential pool pumps
6. Bottle-type water dispensers
7. Portable light fixtures
    

For consumer audio and video products and digital television adapters, the New York legislation requires the Department of State in consultation with New York State Energy Research and Development Authority (NYSERDA) to develop standards by June 30, 2006 and to implement such standards no sooner than six months after issuing final rules. Temporary emergency rules were adopted and renewed several times during 2006 and 2007 but have since expired and not been renewed. The regulatory process for these equipment types appears to be ongoing as of August 2012.

Efficiency requirements for the remaining products were adopted by legislation in 2010. The legislation required the Department of State in consultation with NYSERDA to develop regulations by December 31, 2010. As of August 2012, no such regulations have been adopted. 

New York law also allows the Secretary of State, in consultation with NYSERDA, to add additional products to the list. Any new products added to the list must be commercially available, cost effective on a life-cycle basis, and not covered under existing federal standards.

* These acts include the National Appliance Energy Conservation Act of 1987, the Energy Policy Act of 1992, the Energy Policy Act of 2005, and the Energy Independence and Security Act of 2007.

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP web sites.

The Energy Conservation Construction Code of New York State (ECCCNYS) requires that all government, commercial and residential buildings, including renovations involving building system replacement, must follow the 2009 IECC code. Historic buildings and buildings that do not use either electricity or fossil fuel for comfort conditioning are exempt from these requirements.

The NYS Department of State Division of Code Enforcement and Administration has the responsibility to administer, make amendments, and provide technical support in the form of interpretations and variances. Most recently, the State Fire Prevention and Building Code Council voted on April 1, 2010 to update the ECCCNYS. The updated code is based on the 2009 IECC and ASHRAE 90.1-2007, along with several NYS specific enhancements (the previous ECCCNYS was based on the 2004 IECC supplement and ASHRAE 90.1-2004).

Enforcement of the requirements rests on the governmental entity administering and enforcing the provisions of the Building Construction Code or the Fire Prevention and Building Construction Code applicable within the municipality.

Electronic versions of NY codes are available for a fee at: http://www.dos.ny.gov/dcea/energy_serv.html.

In December 2009 the New York City Council enacted a series of bills intended to improve the energy efficiency of existing buildings in the city. Each of the four bills addresses a different aspect of improving energy efficiency in the city's buildings as follows: energy conservation standards for building renovations; annual energy benchmarking and disclosure; mandatory lighting system upgrades and tenant sub-metering; and mandatory energy auditing, retro-commissioning, and retrofits. The initiatives described here, along with several other related pieces of legislation, are part of a broad effort which the city calls the "Greener, Greater Buildings Plan". Some important details of each law are described below.

Council Bill No. 564-A (Local Law 85 of 2009): Requires that renovations of existing buildings meet minimum energy conservation standards. The result of this law is essentially a city energy code (the New York City Energy Conservation Construction Code) based largely upon the Energy Conservation Construction Code of New York State, but with amendments to more broadly apply it to renovations of existing buildings. Prior to the enactment of this law, energy conservation standards applied only to new construction projects and building alterations resulting in the replacement of at least 50% of a building's systems or subsystems. Under the revised code, additions, alterations, renovations, and repairs must generally conform to the energy code as if they were new construction. An "alteration" generally includes any construction or renovation that requires a permit and an "addition" generally includes any extension or expansion of the conditioned space, floor area, or height of a structure.

Unaltered portions of a building; certain alterations that do no increase energy use; and projects involving historic and landmark buildings are exempt from one or more aspects of the code. The law is effective for all projects that submit construction approval documents to the Department of Buildings on or after July 1, 2010. The basic structure and purpose of the energy code law remains the same, but it has been revised and updated twice since the original enactment by Local Law 48 of 2010 and Local Law 1 of 2011.

Council Bill No. 476-A (Local Law 84 of 2009): Requires building owners to perform energy and water use benchmarking in certain city- and privately-owned buildings at least once annually. The requirements for city buildings generally cover buildings of 10,000 square feet or larger that are owned by the city or for which the city pays the energy bills. Benchmarking is also required for privately-owned buildings larger than 50,000 square feet; multiple buildings on the same tax lot that together exceed 100,000 square feet; and multiple condominium buildings owned by the same board of managers that together exceed 100,000 square feet. Certain public and private properties are exempted from the requirements. Benchmarking was required to be performed by May 1, 2010 for city buildings and May 1, 2011 for privately-owned buildings.

Owners are required to upload data into an internet-based database tool developed by the U.S. Environmental Protection Agency (EPA) that is used to track and assess energy and water use relative to similar buildings. The Department of Finance was required to make the resulting data publicly available by September 1, 2011 for city buildings; September 1, 2012 for non-residential private buildings; and September 1, 2013 for residential private buildings. These reports are now available on the program web site link at the top of this page.

Council Bill No. 973-A (Local Law 88 of 2009): Requires that building owners upgrade the lighting systems in all existing buildings that exceed 50,000 square feet; multiple buildings on the same tax lot that together exceed 100,000 square feet; and multiple condominium buildings owned by the same board of managers that together exceed 100,000 square feet (termed "covered buildings"). All upgrades must be performed by January 1, 2025 in accordance with the lighting standards for new buildings in existence at the time of the upgrade. Exemptions are provided for lighting systems are in compliance with the city energy code as it existed on July 1, 2010, as well as those located within certain occupancy group classifications. The bill also requires that all electricity use in tenant spaces larger than 10,000 square feet that are located within "covered buildings" be sub-metered by January 1, 2025. As with the lighting upgrade requirement, certain tenant spaces are exempted from the requirement.

Council Bill No. 967-A (Local Law 87 of 2009): Requires energy audits and retro-commissioning be performed for all existing buildings that exceed 50,000 square feet; multiple buildings on the same tax lot that together exceed 100,000 square feet; and multiple condominium buildings owned by the same board of managers that together exceed 100,000 square feet. Energy audits must cover all "base building systems", defined to include the building envelope, HVAC systems, conveying systems, domestic hot water systems, and electrical and lighting systems. Retro-commissioning must be done in accordance with a detailed set of specifications under the broad categories of: operating protocols, calibration and sequencing; cleaning and repair; and training and documentation.

Building owners are required to submit energy efficiency reports to the Department of Buildings that include both an energy audit report and a retro-commissioning report. The due dates for the first set of reports range from 2013 - 2022 depending on the last digit of the building's tax block number, with subsequent reports due every decade. The requisite energy audits and retro-commissioning must be completed no more than 4 years earlier than the date on which the energy efficiency report is submitted. Some buildings already certified as being highly energy efficient are exempt from the requirements under certain circumstances.

In May 2007 the New York Public Service Commission (PSC) issued an order instituting a proceeding to develop an Energy Efficiency Portfolio Standard (EEPS). The order set a goal of reducing electricity usage in New York by 15% from projected electricity usage in 2015. After examining comments and input from staff and stakeholders, the PSC issued a further order in June 2008 establishing detailed program targets, ratepayer collections to fund energy efficiency programs, and various other protocols for the EEPS. The June 2008 order also established collections from natural gas customers to fund gas efficiency programs although at the time targets for natural gas efficiency were still under development. In May 2009 the PSC issued another order establishing gas efficiency targets of 4.35 billion cubic feet (Bcf) annually for 2009 -2011, and 3.45 Bcf annually for 2012 – 2020, resulting in a program related gas savings target of 44 Bcf annually in 2020. In October 2011 the PSC issued a further order reauthorizing EEPS programs through December 31, 2015 and suspending a portion of the program that provides utilities with financial incentives for achieving efficiency targets. A subsequent March 2012 order reinstated the utility incentives for for 2012 - 2015 under a revised structure.

The programs are funded through surcharges on retail sales of electricity and natural gas. Collections from electricity customers are administered as an addition to the New York System Benefits Charge (SBC). Under the June 2008 order, collections amount to an average of $159 million annually from October 1, 2008 through December 31, 2011. The collections are intended to support a combination of so-called “fast-track” programs, some of which will be administered by the utilities ($74.2 million) and some which will be administered by NYSERDA as expansions or additions to existing SBC programs ($85.2 million). Beyond these fast-track programs, additional collections for further programs were estimated at an average of $170 million annually through 2011 leading to total expected costs of roughly $330 million annually. As described by a July 2011 Staff White Paper, actual program collections for approved programs totaled roughly $286 million annually in 2011. The October 2011 order lists an overall projected total of $1.18 billion in electric contributions (combined SBC and EEPS) for 2012 - 2015. In December 2012 the PSC issued an order transferring roughly $86.7 million in EEPS funding (consisting of uncommitted funding and budget reductions for two programs) to support CHP and workforce development initiatives within NYSERDA's Technology and Market Development program portfolio.

The June 2008 order also established collections from natural gas customers at $13.2 million annually from October 1, 2008 through December 31, 2011 for fast-track programs. The authorization applies only to gas utilities with 14,000 customers or more. The May 2009 order anticipated collections of $130 million annually (an incremental increase of $56 million annually over existing gas efficiency programs) to meet the program goals. The October 2011 order lists an overall projected total of  $450 million in gas contributions (combined SBC and EEPS) for 2012 - 2015. As with the electric portion of the target, programs will consist of a combination of utility-administered and NYSERDA-administered programs.

It should be noted that the targets above were developed and defined with the recognition that some factors which affect electricity and natural gas consumption are beyond the jurisdiction and control of the PSC. For instance, for the electricity savings targets and funding requirements, the PSC calculated “jurisdictional gap” targets that accounts for the electricity savings by providers not under the PSC’s jurisdiction (e.g., LIPA, NYPA) and electricity savings contributions from other sources (e.g., codes and standards, existing SBC programs, state agency mandates). Thus while total electricity sales reductions under the 15% by 2015 standard would require savings of roughly 29.4 million megawatt-hours (MWh) annually in 2015, the EEPS jurisdictional program target is roughly 7.7 million MWh annually in 2015. When combined with the incorporation of SBC III programs into the EEPS, the total electric jurisdictional gap is 11.2 million MWh annually in 2015. Likewise, the total reduction in gas usage expected from EEPS gas savings programs is 44 Bcf annually in 2020, but savings from other sources could increase this to 112 Bcf annually by 2020. Savings of 112 Bcf annually would equate to a gas usage reduction of roughly 14.7% of expected demand in 2020. A December 2012 PSC order made reductions to the MWh and dekatherm targets associated with NYSERDA's suite of EEPS programs in response to changing market conditions and better information about program operation and effectiveness. The order indicates that the PSC does not view the changes as jeopardizing the achievement of the overall 2015 jurisdictional target.

The program web site above contains the full history of EEPS program development under the PSC, including information on EEPS evaluation methods, measurement and verification, and PSC approvals of NYSERDA and utility program offerings.

New York's energy efficiency standards for state buildings are governed by an overlapping set of state laws and Executive Orders. The summary below describes the standards created by each authority. Executive Order No. 88 (Cuomo) is described first as it contains the far reaching and detailed set of standards. Executive Order No. 88 replaces Executive Order No. 111 originally signed by Governor Pataki in 2001 (and continued by subsequent governors).

Executive Order No. 88 (2012)

Governor Andrew Cuomo signed Executive Order No. 88 on December 28, 2012, directing state agencies and authorities to improve the energy efficiency of state buildings. The order also revokes and supersedes Executive Order No. 111, originally signed in 2001. The order establishes a target of reducing average energy use intensity (EUI) in state-owned and managed buildings by 20% relative to a fiscal year 2010/2011 baseline by April 1, 2020. It also tasks the New York Power Authority (NYPA) with creating a Central Management and Implementation Team (CMIT) to administer the order, and directs the state Office of General Services (OGS) and the New York State Energy Research and Development Authority (NYSERDA) to provide technical assistance to the CMIT and affected state agencies.

Beyond the broader energy intensity reduction target, the order also makes a number of additional requirements of affected state entities, as follows:

• Annual energy benchmarking is required for any state-owned or managed building larger than 20,000 square feet.
• Buildings that receive low benchmark scores and campuses with above average EIUs or low benchmark scores must undergo an ASHRAE Level II energy audit or a comparable audit approved by the CMIT. In addition to energy efficiency measures, the audits must identify opportunities for cost-effective on-site renewable generation and combined heat and power.
• Affected entities must complete or make substantial progress towards completing cost-effective measures identified in an energy audit within two years. Improvements may include low or no cost operational improvements, retrocommissioning, capital energy efficiency improvements, on-site renewable generation, combined heat and power, and other measures identified by the CMIT.
• Sub-metering must be prioritized for buildings larger than 100,000 square feet. To enable individual benchmarking, all buildings of 100,000 square feet or larger on master metered campuses must be sub-metered for all fuels and energy sources by December 31, 2016 unless it is not feasible or cost-effective to do so.
• An energy efficiency analysis must be included in the design phase of all capital project plans and the most cost effective energy efficiency measures or technologies should be included in the project.
• Affected entities may receive credit towards the target for energy efficiency improvements in leased space, and for on-site renewable energy generation if all cost-effective energy efficiency improvements have been made to the host site.
• For state-owned or managed buildings larger than 20,000 square feet, annual reports must be filed with the CMIT by October 1st of each calendar year.

The order provides that energy use associated with electric vehicle charging is exempt from being included in the energy efficiency targets and requirements. The CMIT is also permitted to provide other exemptions for good cause (e.g., building maintains an Energy Star or similar certification). 

Executive Order No. 4 (2008)

Executive Order No. 4 established a state green procurement and agency sustainability program with overarching goals that touch upon many different aspects of government operations. The order itself does not create any specific green procurement standards, instead leaving the development of detailed requirements to an inter-agency committee co-chaired by the Commissioner of the OGS and the Commissioner of the Department of Environmental Conservation (DEC). The committee has approved product specifications for numerous types of equipment, including energy using products such as compact fluorescent light bulbs, dishwashers, refrigerators, clothes washers, and room air conditioners. The order also requires state agencies to develop Sustainability and Environmental Stewardship programs that include specific projects designed to help the agency achieve compliance with the order and reduce environmental impacts. The OGS Executive Order No. 4 web site contains detailed information on agency activities, product specifications, and reporting.  

State Green Building Construction Act (2008)

In September 2008, New York enacted the State Green Building Construction Act, requiring state agencies, departments, boards, public benefit corporations, and commissions to follow green building guidelines when constructing or substantially renovating state buildings. The law directed the DEC to develop regulations to implement the requirement. In August 2009 (A.B. 7246) the original law was repealed and replaced with revised language directing instead that the state OGS develop the requirements, including establishing construction requirements and procedures to be used in implementing the law. The law specifically mentions the USGBC LEED system, the U.S. Green Building Initiative Green Globes system, and the American National Standards Institute in reference to the development of these appropriate procedures. The OGS has posted information pertaining to the administration of these requirements on the program web site under the heading of the New York State Green Building Construction Act. Thus far it does not appear that rules and regulations associated with the law have been promulgated, although the OGS has issued green construction guidelines pursuant to the green building requirements made by Executive Order No. 111.

In 2005 New York City passed a law (Local Law No. 86) making a variety of green building and energy efficiency requirements for municipal buildings and other projects funded with money from the city treasury. The building requirements (described in detail below) apply to new construction, building additions, and substantial reconstructions of existing buildings. Substantial reconstruction is defined as a capital project that involves construction work affecting at least 50% of the floor area or that involves rehabilitation work in at least two of the three major building systems (HVAC, electrical, plumbing). The construction cost values below are adjusted annually for inflation. Program regulations were adopted in 2007 and then amended slightly in 2009 to reference updated green building rating standards. In June 2011 the Mayor issued Executive Order No.149 allowing the Mayor's Office of Environmental Coordination (MOEC) to evaluate developments affecting the green buildings industry and based on these developments, promulgate rules that increase the stringency of the current standards or expand the types of capital projects subject to the standards.

A series of additional laws enacted in 2009 make further requirements for publicly- and privately-owned existing buildings. Click here to view a summary of what these laws require.

General Specifications

• All new municipal construction or major reconstruction projects with an estimated capital cost of more than $2 million, except schools and hospitals, must meet LEED Silver certification standards.
• Non-municipal projects meeting the above criteria and receiving at least 50% of project costs or $10 million from the city treasury must also meet LEED Silver certification standards
• School and hospital projects meeting the above criteria need only meet LEED certification standards.
• Projects with an estimated construction cost of $12 million - $30 million, schools excluded, must achieve an energy cost reduction of 20% above LEED Credit EA1 or the New York State Energy Construction Code (ECCCNYS), whichever is more stringent; and achieve an additional 5% energy cost reduction if the payback period is less than 7 years.
• Projects with an estimated construction cost of more than $30 million, schools excluded, must achieve an energy cost reduction of 25% above LEED Credit EA1 or ECCCNYS, whichever is more stringent; and achieve a further energy cost reduction of 5-10% if the payback period is less than 7 years.
• School projects with a construction cost of more than $12 million must achieve energy cost reductions of 20% above LEED Credit EA1 or the ECCCNYS, whichever is more stringent; and achieve a further energy cost reduction of 5-10% if the payback period is less than 7 years.

Project Specific Requirements: These apply in cases where the general requirements are not triggered.

• Capital projects involving the installation or replacement of a boiler with an estimated construction cost of $2 million or more, or lighting with an estimated cost of $1 million or more, must be designed and constructed to reduce energy use by at least 10% above LEED Credit EA1 or the ECCCNYS, whichever is more stringent.
• Each capital project, other than those covered by the preceding clause, that involves the installation or replacement of HVAC comfort controls with an estimated cost of $2 million or more must be designed and installed to reduce energy costs by 5% above LEED Credit EA1 or ECCCNYS, whichever is more stringent.

The green building requirements described above do not apply to occupancies zoned as high hazard (A), industrial (D-1,-2), stadiums (F-2), prisons (H-1), residential (J-1,-2,-3), or sheds (K). A physical LEED certification rating is only required if the project cost amounts to more than 50% of the capital dollars allocated to an agency during the fiscal year. The mayor may exempt a capital project from any or all of the above requirements, however, such exemptions may not amount to more than 20% of capital spending in a given fiscal year. This program went into effect in January 2007 and the program web site listed at the top of this page contains annual reports on its implementation.

Supplementing the green building program, New York City also has a policy for the purchase of energy efficient products by city agencies. Local Law No. 119 of 2005 (effective January 2007) directs that purchase solicitations from city entities include a specification that products be EPA Energy Star certified if Energy Star standards exist. In addition the law also specifically forbids the purchase of incandescent light bulbs if an equally usable more efficiency alternative is available, directs all office equipment with energy management software be calibrated to achieve the highest savings practical, and directs that screen savers which disrupt low-power mode on computer monitors be disabled. Click here for further information on this and other aspects of New York City's environmentally preferable procurement policy.

In 2006, the Suffolk County Legislature enacted Resolution No. 126-2006, creating the Leadership in Energy and Environment Design (LEED) Program for county construction projects. The program requirements were revised in 2008 (Resolution No. 551-2008), and again in 2011 (Resolution No. 458-2011). The program requires the County Department of Public Works to apply the LEED Building Rating System 2.2 principles be used for new construction projects or renovation projects with a cost of $1,000,000 or more, and for the planning of new construction and renovation projects "built to suit" for long term lease by the County.

The New York Public Service Commission (PSC) requires all electric utilities, energy service companies, jurisdictional municipal electric utilities and jurisdictional cooperative electric utilities to disclose details regarding the fuel mix and emissions of the supplier’s electric generation to customers. This information must be provided to retail customers in a standard format every 6 months.

The PSC created New York’s Environmental Disclosure Program via an order issued in December 1998. This program has been modified several times since it was established. A November 2008 PSC order reduced the frequency of the calculation of fuel mix and emissions data to once annually (the calendar year), but maintained the provision requiring customer disclosure of that data every six months.

New York Governor George Pataki signed Executive Order No. 111 to promote "Green and Clean" State Buildings and Vehicles on June 10, 2001. The renewable-power procurement component of this order commits the state government to purchase a portion of its electric power from renewable energy resources -- at least 10% from resources such as wind, solar thermal, photovoltaics (solar electric), sustainably managed biomass, tidal, geothermal, methane waste and fuel cells by 2005, increasing to 20% by 2010. The order applies to all agencies and departments over which the governor has executive authority, and all public benefit corporations and public authorities whose heads are appointed by the governor. The order also requires the state to adhere to green building standards when constructing new buildings or significantly renovating existing buildings.

State entities can fulfill their renewable power procurement obligations through on-site generation or by purchasing renewable energy on the open market. According to the 2012 RPS Performance Report state green energy purchases during April 2009 - March 2010 (Fiscal Year 2010) were approximately 320,000 MWh, or roughly 12.23% of electricity needs for state buildings. The bulk of renewable energy purchases made under this policy have been sourced from sustainably managed biomass and wind energy resources. Although Executive Order No. 111 is not specific to activities purchases beyond 2010, the RPS projections used by the New York Public Service Commission (PSC), which extend through 2015, incorporate green energy purchases by state government throughout the life of the standard.

New York first adopted uniform interconnection standards in 1999 (see history below). The Standard Interconnection Requirements (SIR) have subsequently been amended several times since, most recently with the adoption of far reaching revisions in February 2009. Several more minor revisions necessitated by changing net metering laws have taken place since that time, culminating with the most recent version adopted in April 2012. The rules apply to systems up to two megawatts (MW) in capacity located in the service area of one of New York's six investor-owned local electric utilities: Central Hudson Gas and Electric, Consolidated Edison (Con Edison), New York State Electric & Gas, Niagara Mohawk (d/b/a National Grid), Orange and Rockland Utilities, and Rochester Gas and Electric.

The SIR addresses technical guidelines for interconnection and application procedures. Since the adoption of the February 2009 amendments, the SIR contains two separate sets of interconnection procedures and processes. All systems up to 25 kilowatts (kW) are governed by a simplified six-step process, while larger systems up to 2 MW generally use an 11-step process. Certified, inverter-based systems from 25 kW to 200 kW are also permitted to use the simplified six-step process. Both processes cover the initial inquiry to final utility acceptance for interconnection and include interconnection timelines, responsibility for interconnection costs, and procedures for dispute resolution. The appendices contain a standard contract and standard application forms.

In order to be considered "certified", equipment must meet certain minimum protective function requirements and be certified by a nationally recognized testing laboratory as compliant with UL-1741. A current list of type-tested equipment is available on the PSC's DG web site. Certified, inverter-based systems up to 25 kW are not required to have an external disconnect switch. The requirements specifically state that utilities are not permitted to require customers to purchase general liability insurance; however, the PSC does encourage distributed generation owners to purchase insurance for their own protection. Utilities are also required to maintain a web-based system for providing information on the status of interconnection requests to customers and contractors. The SIR contain minimum content requirements for this information system, and also require that utilities offer a web-based application process for systems of 25 kW or less.

History
New York was the second state to adopt uniform interconnection standards for distributed generation (DG) systems. The New York Public Service Commission (PSC) originally adopted Standard Interconnection Requirements (SIR) for systems up to 300 kilowatts (kW) in capacity in December 1999. However, because of concerns over some of the burdensome procedural issues, the PSC amended its rules in November 2002. These changes streamlined the application process, and provided a more ordered progression for the study and review phases of the procedure. Subsequently, in November 2004 the PSC issued an order further modifying the SIR by increasing the maximum capacity of interconnected systems from 300 kW to 2 megawatts (MW) and expanding interconnection to the state's area networks, which serve parts of large, urban areas (including New York City).

Note: In October 2012 the LIPA Board of Trustees adopted changes to the utility's net metering tariff that permit remote net metering for non-residential solar and wind energy systems, and farm-based biogas and wind energy systems. It also adopted a measure to increase the aggregate net metering cap for solar, agricultural biogas, residential micro-CHP and fuel cells from 51.2 MW to 150 MW. The change in the general aggregate net metering cap does not affect the 15.3 MW cap specific to wind energy systems. Please see the full tariff change proposal for further details.

In August 2012 New York enacted legislation (A.B. 9560) expanding remote net metering to include agricultural and non-residential micro-hydroelectric systems. Though LIPA's net metering policy is not governed by the state net metering law, the provisions are designed to mimic state law. Amendments to state law typically result in equivalent amendments to LIPA's net metering tariff.  

In January 2009, the Long Island Power Authority (LIPA) made significant changes to its net metering policy that extended net metering to non-residential customers; expanded system size limits for residential and farm-service customers; and dramatically increased the capacity limit on overall enrollment. Prior to these revisions, net metering was only available for residential photovoltaic (PV) systems of 11 kW or less, residential wind systems of 27.5 kW or less, and farm-service wind systems of 137.5 kW or less. The rules have been updated multiple times, most recently in October 2012, to remain consistent with the evolving terms of the New York State net metering law. 

Under the most recent revisions, net metering is available for residential, non-residential, and farm-service PV and wind energy systems, farm-service, and residential micro-CHP and fuel cell systems. Eligible systems are subject to the following system capacity limits:

• Residential: Solar and wind systems up to 25 kW, micro-CHP and fuel cell systems from 1 - 10 kW
• Farm-Service: Solar systems up to 25 kW, wind systems up to 500 kW, and anaerobic digester systems up to 1 MW
• Non-residential: Solar and wind energy systems up to 2 MW

Net metering will be made available until overall solar, agricultural biogas, residential micro-CHP and fuel cell system enrollment reaches 150 MW and overall wind enrollment reaches 15.3 MW (0.3% of 2005 peak electric demand) although the utility may expand this limit at its discretion. The 150 MW limit for non-wind systems represents such a change, as the former limit was set at 51.2 MW, or 1% of utility's 2005 peak demand.

Net metering is generally accomplished using a single bi-directional meter, although other arrangements are possible for hybrid systems that combine a solar or wind energy system with an agricultural biogas, micro-CHP, or fuel cell system. For solar, wind, and anaerobic digester systems, net excess generation (NEG) is carried forward from month to month at the customer's retail electricity rate. Excess NEG left over at the end of a 12-month period is purchased by LIPA at the seasonal (winter/summer) avoided cost rates. For residential micro-CHP and fuel cells, NEG is purchased on a monthly basis at the avoided cost rate and any resulting credits carry forward indefinitely.

In October 2012 LIPA adopted tariff changes allowing eligible farm-based and non-residential customer-generators to engage in "remote" net metering of solar, wind, and farm-based biogas systems. The law permits eligible customer-generators to designate net metering credits from equipment located on property which they own or lease to any other meter that is located on property owned or leased by the customer that is within the LIPA service territory and same load zone as the net metered facility. Credits will accrue to the highest use meter first, and as with standard net metering, excess credits may be carried forward from month to month. A change in New York state law enacted in August 2012 extends remote net metering to micro-hydroelectric customer-generators. As LIPA's net metering rules typically replicate state law, further tariff changes reflecting this change may be forthcoming.

Customers on tariffs that include demand charges will only be billed for the measured maximum kW demand actually supplied by LIPA during the billing period. Ownership of renewable energy credits (RECs) is not addressed in the net metering tariff; however, LIPA retains ownership of any RECs produced by systems that participate in the LIPA solar and wind energy rebate programs.

Residential and farm-service customers that install systems of 27.5 kW or less are not required to pay any interconnection charges. Farm-service customers that install larger systems are responsible for paying 50% of the applicable interconnection expenses, and non-residential customers are responsible for 100% of the cost of interconnection. Additional charges may apply in situations where the interconnection requires a dedicated transformer or additional safety equipment. Such charges are limited to $350 - $5,000 for most systems, but are based on actual costs without a limit for non-residential PV systems.

All net metered systems must comply with the equipment and installation specifications contained in LIPA's Interconnection Guide for Independent Power Producers. These guidelines historically required the installation of a utility accessible external disconnect switch (EDS) for all systems. This contrasts with the New York Standard Interconnection Requirements (SIR) for the state's investor-owned utilities, which exempt inverter-based facilities of 25 kW or less from the EDS requirement. In August 2011 New York enacted legislation (A.B. 5525) directing LIPA to conform to this portion of state SIR. LIPA's requirements were subsequently revised. Notably LIPA does not generally require customer-generators to obtain liability insurance for their systems (although they do encourage it). Under certain circumstances, LIPA may require customer-generators to meet additional performance and safety standards, perform additional system tests, or purchase liability insurance beyond that specified in the guide.