NYSERDA - Industrial and Process Efficiency Performance Incentives

May 16, 2023


The New York State Energy Research and Development Authority (NYSERDA) through Program Opportunity Notice (PON) 2456 offers the Industrial and Process Efficiency (IPE) Program to provide performance-based incentives to manufacturers and data centers implementing energy efficiency and process improvements through industrial manufacturing improvement, data center improvement, new construction, and operation & maintenance. Applicants would apply for the funding online through NYSERDA Consolidated Funding Application (CFA) page

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 fossil fuel efficiency improvements at both existing facilities and new construction. Facilities must pay into the System Benefits Charge (SBC) in order to be eligible for incentives. 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

  • New Construction
  • Energy/heat recovery
  • Space conditioning improvement (related to IT processes)
  • Pumping system improvements
  • Compressed air efficiency
  • Fluid and support system improvement
  • Air flow management improvement

Operational and Maintenance

  • Compressed air system leak management
  • Replacement of leaking steam traps
  • Installation of cogged styles fan belts
  • Burner tune-up

Incentives are provided on a first-come, first-serve basis through December 31, 2019 or until the funding is fully allocated. The incentives are different for up-state and down-state New York.  Downstate includes customers of Consolidated Edison, and Upstate include customers of Central Hudson, National Grid, NY State Electric & Gas, Orange and Rockland, and Rochester Gas and Electric. 

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Rebate Program
Web Site: https://portal.nyserda.ny.gov/CORE_Solicitation_Detail_Page?SolicitationId=a0rt0000000QnB1AAK
Administrator: New York State Energy Research and Development Authority
Start Date:
Eligible Renewable/Other Technologies:
  • Chillers
  • Heat recovery
  • Compressed air
  • Motors
  • Motor VFDs
  • Processing and Manufacturing Equipment
  • Custom/Others pending approval
  • Other EE
  • Data Center Equipment
Incentive Amount: Minimum incentive of $25,000

Electric Process and Energy Efficiency: $0.10/kWh (Upstate) or $0.16/kWh (Downstate)
Fossil Fuel Process and Energy Efficiency: $6/MMBtu (Upstate and Downstate)
Operational and Maintenance: $0.04/kWh (Electric) and $3/MMBTU (fossil fuel)
Maximum Incentive: 50% of project cost, up to $1 million per facility per year (electric) and $500,000 per company per year (fossil fuel) with a maximum of $2 million total per company.
Equipment Requirements: Vary by measure


This program has 1 incentives
Technologies: Chillers, Heat recovery, Compressed air, Motors, Motor VFDs, Processing and Manufacturing Equipment, Custom/Others pending approval, Other EE, Data Center Equipment
Sectors: Industrial
Parameters: The incentive has a minimum of 50.00 % of cost


Name: Industrial and Process Efficiency (Data Centers)
Organization: New York State Energy Research and Developmen
Address: 17 Columbia Circle
Albany NY 12203-6399
Phone: (212) 785-0292
Email: IPEOutreach@nyserda.ny.gov
Name: Industrial and Process Efficiency (Manufacturing)
Organization: New York State Energy Research and Developmen
Address: 17 Columbia Circle
Albany NY 12203-6399
Phone: (585) 232-5610
Email: IPEOutreach@nyserda.ny.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.