NYSERDA - New Construction Program

May 05, 2022


NOTE: On March 2016, NYSERDA revised the Commercial New Construction program (PON 1601) extending the program through December 29, 2017, or until the funds are fully committed. 

The New York State Energy Research and Development Authority (NYSERDA) through the New Construction Program provides technical and financial support to improve energy efficiency in design, construction, and operation of new and substantially renovated buildings. The PON 1601 was revised in March 2016 extending the program till December 29, 2017. Incentives are available until December 29, 2017, or until the funds are fully committed. 


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. These include major investor owned utilities in the State including: Central Hudson Gas & Electric Corp., Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, National Grid, Orange and Rockland Utilities, and Rochester Gas and Electric Corporation.

The program is available for commercial, institutional, educational, healthcare, government, and not-for-profit sector, that are seeking to build either new facilities or perform substantial renovations on existing buildings. Interested participants in this program should complete on-line NYS Consolidated Funding Application or call NYSERDA at (866) 697-3732 to initiate their application. NYSERDA will assign Outreach Project Consultants (OPC), who will work directly with potential participants with the application process, and help them to better understand the program and how they can benefit from it. 

Program Description

Financial incentives are based on the anticipated energy performance of the building relative to a baseline level. The incentives will support the incremental costs of qualifying energy efficiency measures. Incremental cost is defined as the difference between the cost of a standard equipment vs. an energy efficient equipment that exceeds the baseline condition. Pre-approval of the financial support from NYSERDA is required before installation. 

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 incremental energy efficiency of the facility compared to baseline performance.

Custom measure: This approach is suited for small projects of moderate complexity, where potential energy saving opportunities can be calculated for a variety of individual measures. To qualify the incentives must add up to a minimum of $30,000.

Whole Building design: This is a comprehensive design approach towards increasing energy efficiency of the building. This approach is limited to projects of at least 25,000 sq ft, or least 100 tons of cooling loar, or at least 15kW of lighting load. 

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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Rebate Program
Web Site: http://www.nyserda.ny.gov/new-construction
Administrator: New York State Energy Research and Development Authority
Start Date: 01/04/2012
Eligible Renewable/Other Technologies:
  • Comprehensive Measures/Whole Building
  • Custom/Others pending approval
  • Other EE
Incentive Amount: Technical Support
Basic Services: $5,000, 50% of the cost up to $75,000
Zero Net or Deep Savings: 80% of the cost up to $60,000

Financial Support
Custom Measure: $0.10 per KWh saved, $225 per summer peak KW saved, capped at 50% of incremental cost
Whole Building Design: capped at 60% of incremental cost, $0.11 -$0.16 per kWh saved and $230- $280 per KW saved (depending on efficiency)

Building commissioning: up to $25,000
Green Building Bonus: $0.20 per sq. foot up to $75,000
Maximum Incentive: Up to $825,000 for upstate residents, and $1.575 million for Con Edison customers (not including bonus incentives),
Technical support capped at $160,000
Eligible System Size: Varies
Equipment Requirements: The basic requirement is to exceed ASHRAE 90.1-2013 by at least 3%. For deep savings the project must exceed ASHRAE 90.1-2013 by at least 40%
Installation Requirements: Vary by project type
Must not receive other financial incentives available through other NYSERDA programs or the utility.


Name: E. Stephen Finkle
Organization: New York State Energy Research and Developmen
Address: 17 Columbia Circle
Albany NY 12203-6399
Phone: (518) 862-1090
Email: stephen.finkle@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.