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Financing & Incentives for Multifamily Buildings

There are a variety of tax incentives and rebates available in NYC for multifamily buildings to be more energy efficient. Some of the most notable programs include:
New York State Affordable Multifamily Energy Efficiency Program: This program offers incentives up to $2,000 per dwelling unit for affordable multifamily buildings with five or more residential units. Incentives are available for a variety of energy efficiency measures, including lighting upgrades, insulation, and HVAC upgrades.
Con Edison Savings for Multifamily Buildings: This program offers rebates for multifamily buildings to install energy-efficient equipment and technology. Rebates are available for a variety of measures, including HVAC upgrades, lighting and controls, weatherization, energy management systems, and low flow measures.
Low Carbon Pathways: This NYSERDA program offers incentives ranging from $700 - $5,000 per dwelling unit for installing required upgrades as part of a low carbon energy-saving retrofit. Additional incentives are available for installing supplemental upgrades.
Charge Ready NY: This NYSERDA program offers rebates for the installation of electric vehicle charging stations, up to $4,000 per charging port installed. This can be combined with a New York State tax credit.
To learn more about the specific tax incentives and rebates available for multifamily buildings in NYC, you can visit the websites of the following organizations:
New York State Energy Research and Development Authority (NYSERDA)
Con Edison
New York City Department of Buildings
New York City Department of Environmental Protection (DEP)
You can also consult with an energy efficiency consultant to learn more about your options and how to qualify for available incentives.
There were a number of city, state, and federal incentives and grants available to support the decarbonization of multifamily buildings in the U.S. However, the specifics of these incentives can change over time, so it's crucial to consult the respective agency websites or contact them directly for the most up-to-date information.
Federal Incentives:
Investment Tax Credit (ITC): This provides a tax credit for solar energy systems on residential and commercial properties. The ITC can be used for photovoltaic systems, solar water heaters, and other solar-based equipment.
Residential Energy Efficient Property Credit: This is a tax credit for homeowners who make qualified energy-efficient improvements to their homes. It can include solar panels, solar water heaters, and certain heat pumps.
Low-Income Housing Tax Credit (LIHTC): While not exclusively for green improvements, projects that incorporate energy efficiency might receive priority.
New York City Incentives:
NYC Retrofit Accelerator: Offers free, personalized advisory services to streamline the process of making energy efficiency improvements that can lower operating costs, enhance tenant comfort, and reduce greenhouse gas emissions.
Property Assessed Clean Energy (PACE) Financing: This program allows property owners to finance energy efficiency and renewable energy projects through a special assessment on their property.

State Incentives

Low Carbon Pathways

The Multifamily Low Carbon Pathways Program offers incentives to existing multifamily building owners and portfolio managers (Applicant) who pay into the System Benefits Charge (SBC )/ NYSERDA Clean Energy Fund on their electric utility bill. The incentive measure packages are designed such that they can be implemented independently of each other, while taking into consideration health and safety concerns and future retrofits. Applicants can choose to implement one or more incentive measure packages concurrently or sequentially, depending on their buildings’ needs.

Eligibility Requirements

The eligibility requirements listed in this section are not comprehensive. Special circumstances may be reviewed on a case-by-case basis. Contact NYSERDA at for a review.

Eligible Buildings

• Existing New York State Multifamily buildings that are New York State electricity customers who pay into the System Benefits Charge (SBC )/NYSERDA Clean Energy Fund on their electric utility bill are eligible to participate in this program.
• New facilities or those that have undergone substantial renovations must be in operation for more than one year prior to submission of the Program Application to be eligible for funding under this solicitation.

Eligible Multifamily Owners and Property Management Firms

This program is available to multifamily building owners and/or property management firms that meet at least one of the following criteria:
1. Own or manage 10 or more existing multifamily buildings OR
2. Are an active member in at least one real estate organization that congregates owners and /or property managers on a semi-regular basis through meetings or calls and/or has a means of disseminating information among members (i.e. through newsletters, emails, flyers, etc.).
Examples of eligible building/industry organization include, but are not limited to, the following organizations:
Citizens Housing and Planning Council (CHPC)
Council of New York Cooperatives & Condominiums (CNYC)
New York State Association for Affordable Housing (NYSAFAH)
Real Estate Board of New York (REBNY)
Rent Stabilization Association (RSA)
Urban Homesteading Assistance Board (UHAB)
To confirm if an organization meets the criteria established by NYSERDA, please contact NYSERDA at

Eligible Consultants/Service Providers

Participants must work with a or a NYSERDA to be eligible.

Ineligible Project Types

The following project types are not eligible for the Program:
• New construction projects
• Substantial renovations (gut rehabs), as defined by projects with the following characteristics:
Change of use and reconstruction of an existing building or space within; or
Construction work of a nature requiring that the building or space within be out of service for at least 30 consecutive days; or
Reconstruction of a vacant structure or space within.
• Projects that do not meet the following minimum occupancy requirements:
A minimum of 7 or 10% (whichever is more) occupied units for all buildings with 15 or more units.
A minimum of 50% (rounded down) occupied units for all buildings with 5-14 units

Measure Package and Incentives Overview

Participant must choose at least one of the low carbon measure packages to install as listed in Table 1 on the next page.
Participant can choose to install more than one measure package in a project and be eligible to receive additional corresponding incentives.
Required Measures: To receive the incentives for each package, the Participant is required to install all Required Measures and follow the minimum installation standards in Attachment A: Measure Package Requirement Details.
Recommended Measures: In addition to the Required Measures, Participant can choose to install one or more of the Recommended Measures listed within the corresponding measure package for additional bonus incentives. To receive the bonus incentive(s), a Participant is required to follow the minimum installation standards for the corresponding Recommended Measures as outlined in Attachment A: Measure Package Requirement Details.
Previously Installed Measures: Measures installed and operating prior to entering the program cannot be incentivized retroactively. Only new measures are eligible for program incentives. Only new measures can be included in the project work scope and count towards the total project cost.
Incentive Cap
NYSERDA incentives through Low Carbon Pathways will not exceed 50% of the total costs of eligible measures in an individual project OR $1.5M in incentives across the corporate parent entity’s portfolio, whichever is less. For the purposes of calculating the incentive cap, the total project cost includes the total cost of measures as noted in their respective workscope tools and invoice documentation. Consulting fees, including construction management, are not included in the total project cost for the purposes of calculating the incentive cap.
In instances where projects are layering Low Carbon Pathways incentives with additional incentives available through other offerings (e.g. New York State Clean Heat Program, Federal Weatherization Assistance Program, etc.), Low Carbon Pathways incentives will be adjusted to ensure that the total combined incentives for measures incentivized through Low Carbon Pathways do not exceed the total cost of these specific measures. To ensure compliance with this requirement, NYSERDA requires a copy of the executed award letter(s) from all other offerings in which the project is receiving funding from.
Incentive Recipient
Participant can designate whether incentives should be provided to Participant, a consultant, or other entity.
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Project Milestones and Incentives Payment Schedule

The Participant will receive the eligible incentives for their project after each milestone has been approved by NYSERDA. Incentive payments at each milestone are a set percentage of the total approved incentive. The incentive schedule for each measure package is shown in Table 2 below. For more details about the requirements of each milestone, please refer to Attachment A: Measure Package Requirement Details.
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ConEd Multifamily Energy Efficiency Program

The Con Edison Multifamily Energy Efficiency Program (“MFEEP”) offers incentives for installing energy-efficient electric and gas equipment and technologies. Energy efficiency can help improve the bottom line by reducing energy use and maintenance costs while increasing operating efficiencies. These upgrades can also help protect the environment. This Program Manual encompasses information on incentives and program rules for market rate buildings.

Gas Incentives

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Electric Incentives

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New York City Incentives

PACE Financing

NYC Accelerator Property Assessed Clean Energy (PACE) is an innovative financing tool that helps commercial and multifamily building owners fund energy efficiency and renewable energy projects. It offers long-term, fixed-rate financing, covering up to 100% of project costs with no cash up-front from the owner.
NYC Accelerator PACE Financing is a program offered by the New York City’s Mayor’s Office of Climate and Environmental Justice, in partnership with the New York City Energy Efficiency Corporation (NYCEEC).
Benefits of NYC Accelerator PACE Financing
Covers 100% of energy upgrade costs with no cash upfront
Provides long-term fixed-rate financing
Can be transferred if the building is sold
Can finance other project costs needed for installation, like asbestos and lead mitigation of roof upgrades
Drives energy savings and increases property value

Federal Tax Credits

Section 179D Deductions * Commercial

This incentive provides a deduction to help make multifamily and commercial buildings more energy efficient.
The incentive amount depends on the efficiency of the building — the more efficient, the greater the incentive
There are additional incentives for prevailing wages
Incentives range from 50 cents per ft² (for 25% efficiency gain over baseline) up to $5.00 per ft² (for 50% efficiency gain over baseline + prevailing wages)
There is also a retrofit option for buildings 5 years and older

30% Federal Investment Tax Credit for Solar

The signing of the Inflation Reduction Act recently extended the 30% Federal Investment Tax Credit (ITC) for solar. The Solar Investment Tax Credit (ITC) is a tax credit (a dollar-for-dollar reduction of your federal tax liability) that you can claim for installing a solar and/or battery system on your property.
30% Tax Credit for installing a solar and/or battery system, worth 30% of system costs
Available to homes and businesses that pay taxes
There are additional incentives for meeting “domestic content requirements” and developing in an “energy community”, more guidance to come

What is a tax credit?

A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000. The federal tax credit is sometimes referred to as an Investment Tax Credit, or ITC, though is different from the ITC offered to businesses that own solar systems.

What is the federal solar tax credit?

The federal residential solar energy credit is a that can be claimed on federal income taxes for a percentage of the cost of a solar PV system paid for by the taxpayer. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.)
The installation of the system must be complete .

Am I eligible to claim the federal solar tax credit?

You might be eligible for this tax credit if you meet the following criteria:
Your solar PV system was installed between January 1, 2017, and December 31, 2034.
The solar PV system is located at a residence of yours .
You (i.e., you purchased it with cash or through financing but you are neither leasing the system nor nor paying a solar company to purchase the electricity generated by the system).
Or, you purchased an interest in an , if the electricity generated is credited against, and does not exceed, your home’s electricity consumption. Notes: the IRS issued a statement (see link above) allowing a particular taxpayer to claim a tax credit for purchasing an interest in an off-site community solar project. However, this document, known as a private letter ruling or PLR, may not be relied on as precedent by other taxpayers. Also, you would not qualify if you only purchase the electricity from a community solar project.
The solar PV system is new or being used for the first time. The credit can only be claimed on the “” of the solar equipment.

What expenses are included?

The following expenses are included:
Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)
Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees
Balance-of-system equipment, including wiring, inverters, and mounting equipment
that have a capacity rating of 3 kilowatt-hours (kWh) or greater (for systems installed after December 31, 2022). If the storage is installed in a subsequent tax year to when the solar energy system is installed it is still eligible, however, the energy storage devices are still subject to the ). Note: A private letter ruling may not be relied on as precedent by other taxpayers.
Sales taxes on eligible expenses

How do other incentives I receive affect the federal tax credit?

For current information on incentives, including incentive-specific contact information, visit the .

Rebate from Electric Utility to Install Solar

Under most circumstances, subsidies provided by your utility to you to install a solar PV system are excluded from income taxes through an
. When this is the case, the utility rebate for installing solar is subtracted from your system costs before you calculate your tax credit. For example, if your solar PV system installed in 2022 cost $18,000, and your utility gave you a one-time rebate of $1,000 for installing the system, your tax credit would be calculated as follows:
($18,000 - $1,000) * 0.30 = $5,100
However, payments from a public utility to compensate for excess generated electricity not consumed by the taxpayer but delivered to the utility’s electrical grid (for example, net metering credits) are not subsidies for installing qualifying property and do not affect the taxpayer’s credit qualification or amounts.

Payment for Renewable Energy Certificates

When your utility, or other buyer, gives you cash or an incentive in exchange for renewable energy certificates or other environmental attributes of the electricity generated (either upfront or over time), the payment likely will be . If that is the case, the payment will increase your gross income, but it will not reduce the federal solar tax credit. Note: A private letter ruling may not be relied on as precedent by other taxpayers.

Rebate from State Government

Unlike utility rebates, rebates from state governments generally do not reduce your federal tax credit. For example, if your solar PV system was installed in 2022, installation costs totaled $18,000, and your state government gave you a one-time rebate of $1,000 for installing the system, your federal tax credit would be calculated as follows:
$18,000 * 0.30 = $5,400

State Tax Credit

State tax credits for installing solar PV generally do not reduce federal tax credits—and vice versa. However, when you receive a state tax credit, the taxable income you report on your federal taxes may be higher than it otherwise would have been because you now have less state income tax to deduct. (The Tax Cuts and Jobs Act of 2017 placed a $10,000 limit on state and local tax (SALT) deduction through 2025. Therefore, if a homeowner is still paying more than $10,000 in SALT after claiming a state tax credit, the state tax credit benefit would not effectively be reduced by the federal tax rate, as it would not impact federal taxes (due to the SALT limit).) The end result of claiming a state tax credit is that the amount of the state tax credit is effectively taxed at the federal tax level.

Flexible Technical Assistance (FlexTech) Program

Completing an energy study of your building can help you identify and evaluate opportunities to reduce energy costs and incorporate clean energy into your capital planning. The FlexTech program shares the cost to produce an objective, site-specific, and targeted study on how best to implement clean energy and/or energy efficiency technologies. A NYSERDA can work with you to complete the energy study.
To get started, email us at . Tell us about your project and we’ll guide you through the application process.

Eligible Facilities

Commercial, industrial, and multifamily facilities in New York State that pay into the electric System Benefits Charge (SBC) are eligible to receive assistance
Colleges and universities must be Clean Green Campuses members to be eligible for FlexTech.
Small Businesses and Not-For-Profits may be eligible for a subsidized
P-12 schools in New York State that pay into the electric System Benefits Charge (SBC) and are not designated as a public under-resourced school are eligible to receive assistance. P-12 schools that are designated as a public under-resourced school are eligible to participate in the .

How to Apply

If you’re not sure how to get started, email us at . Tell us about your project and we’ll guide you through the application process:
Visit the to read more about the program and obtain the
Submit your FlexTech application, along with a scope of work & budget to *Scope of work and budget templates are available on the .
You can always email at any point with questions.

Learn More

By sharing the costs of a FlexTech study, the FlexTech Program can help you make better investment decisions on your energy projects. It can help you determine:
If a clean energy project is right for you
How to reduce your energy bills
The payback on potential energy-related building upgrades
How to develop a capital plan that includes clean energy components
Eligible study areas can include:
Energy efficiency technical analyses
Investigation of an advanced technology or system
Creation of a long-term energy plan
Investigation of deep energy savings
Investigation of Clean Heating and Cooling Systems including Air Source Heat Pumps, Ground Source Heat Pumps, Variable Refrigerant Flow, and Solar Heating and Cooling
Investigation of distributed energy resources
A summary of eligible cost-shared services and service definitions can be found on the .

Heating and Cooling

Reduce natural gas consumption, achieve energy savings


Incentives are limited to 50% of project costs or $1 million, whichever is lower. Project costs includes those related to equipment, labor, decommissioning, and project design.
ConEdison Heat Pump Incentives for Multifamily Buildings
Heating Application
- CCASHP for existing buildings only - Full Load Heating
$5,000/dwelling unit
- Buildings with 50 or fewer dwelling units - Prescriptive
- CCASHP for existing buildings only - Full Load Heating
- Buildings with more than 50 dwelling units - Custom
- New construction - Eligible for both space and water heating
- Existing buildings - Eligible for both space and water heating
All heat pump technologies + Tier 1
5–30% reduction in dominant load compared to baseline
All heat pump technologies + Tier 2
More than 30% reduction in dominant load compared to baseline
Split HPWH technologies
Air-to-water HPWHs with storage capacities greater than 120 gallons must meet or exceed ENERGY STAR commercial water heater heating requirements.
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Eligibility Requirements

You must own or manage a residential multifamily building with 5+ residential units and have an eligible Con Edison electric account.
New construction projects are only eligible for GSHP incentives, not eligible for ASHP incentives.
Mixed-used buildings with both multifamily and commercial spaces should apply to the program with the dominant use type, determined on a case-by-case basis.
All existing buildings are subject to decommissioning of the existing fossil fuel system for the building’s space-heating scope of work.
Common-area-only, scope-of-work projects are not eligible for Clean Heat incentives.
Projects submitted after January 17, 2023, must not have begun installation.
Please read the (PDF) for full eligibility requirements.

How to Apply

To get started, find a participating contractor in the New York State Clean Heat Program. Your contractor will help select and install your heat pump and deduct your rebate from the total project cost.

National Grid

Determining Project Eligibility

Participation in the program is limited to affordable multifamily buildings with five or more residential units. Affordable multifamily housing is defined as buildings that have regulatory agreements with a housing agency or in which at least 25% of the units are, or are expected to be, occupied by households earning not more than 80% of Area Median Income or State Median Income, whichever is greater.
Supporting documentation, such as regulatory agreements or mortgages from housing agencies, must be provided. .
If your building is not developed and maintained as affordable housing, you may be eligible for market-rate incentives.

Affordable Housing Incentives

Understanding the Program Incentive Structure
The Comprehensive Pathway provides greater incentives while allowing for more significant efficiency upgrades by encouraging whole-building retrofits across multiple building systems (e.g., heating and cooling, insulation, and lighting). Incentives are applied based on a point system. A minimum of 100 points will need to be achieved to fall into comprehensive category. To help affordable multifamily property owners and managers identify energy efficiency opportunities and develop comprehensive scopes of work, energy audits, also known as energy assessments, will be required. Technical assistance is available to offset part of the cost of the audits.
The Non-comprehensive Pathway is available for affordable multifamily property owners and managers interested in completing smaller projects that do not reach 100 points or do not want technical assistance. Incentives for projects in the Non-comprehensive Pathway are determined by the equipment installed and/or energy savings.
Comprehensive Pathway Incentive Structure
40 Points Per Measure (High-Value EE)
30 Points Per Measure (High-Medium Value)
20 Points Per Measure (Medium Value EE)
10 Points Per Measure (Light-Medium Value EE)
5 Points (Light Touch EE)
Windows replacement
Domestic hot water heater replacements
Energy management system (EMS)
Air sealing
Boiler clean & tune
Insulation (roof)
Hot water and steam pipe insulation
Orifice plates
Common area lighting
Insulation (wall)
Central cooling
Steam traps
In-unit direct install measures such as faucet aerators, showerheads, LEDs
Boiler replacement
HVAC electric controls (BMS, thermostats)
Appliances (stoves, refrigerators, washer/dryers, dishwashers)
Ventilation such as energy recovery ventilators
Motors and drives
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Any project that accumulates 100 or more total points qualifies as a comprehensive project. Please refer to the for additional information on eligible measures, requirements, and incentive amounts.

Incentive Amounts

Comprehensive project incentives are provided on a dollar per dwelling unit basis, with two tiers of incentives based on a project’s total points. The higher the tier, the higher the incentive amount per dwelling unit. For an example of how this could look, see the tables below.
Comprehensive Pathway Incentives
Minimum Points
Downstate Incentive ($/Dwelling Unit)
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Technical Assistance for Energy Audits

To qualify for comprehensive projects energy audits, also known as energy assessments, will be required. These are conducted by approved Energy Providers, which are either a NYSERDA Multifamily Building Solutions Provider or a NYSERDA FlexTech Consultant, before the project begins and can help identify energy efficiency opportunities and determine an initial scope of work. To encourage and support comprehensive projects, we have a list of Energy Providers via the link below. The program covers up to 75% of the costs associated with these assessments by providing:
A 50% cost share when the assessment is completed
An additional 25% when the building proceeds with a comprehensive energy retrofit
For a list of eligible energy consultants, click here to find a or a .
If a building has recently gone through an energy audit, they may be exempt from this requirement. Examples of eligible audits include ASHRAE Level I, ASHRAE Level II, or an Integrated Physical Needs Assessment (IPNA).
Interested in becoming an eligible energy consultant? Learn more to become a or a .


Remember, the best way to ascertain what incentives or grants are currently available and best suited for your specific project is to:
Visit the official websites of relevant agencies (e.g., NYSERDA, HUD, DOE).
Engage with energy consultants or specialists familiar with multifamily building decarbonization in NYC.
Regularly check for updates as new incentives can be introduced, and existing ones can undergo changes in terms and conditions.
Lastly, local utility companies often offer rebates or incentives for energy-efficient upgrades, so it's beneficial to engage with your utility provider as well.

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