ALBANY, N.Y. — The state of New York is moving forward with its Clean Heat for All Challenge, a partnership between the New York Power Authority (NYPA), the New York State Energy Research and Development Authority (NYSERDA), and the New York City Housing Authority (NYCHA) to develop a new electric HVAC product that can better serve the heating and cooling needs of existing multifamily buildings and hasten the transition to fossil-fuel free HVAC equipment.

By this winter, 72 cold-climate, packaged window heat-pump units will be installed at NYCHA apartments to provide heating and cooling while reducing greenhouse gas emissions from public housing in New York City. The units will be comprehensively monitored and assessed over the course of the upcoming winter, and the information gained incorporated into a plan to install 30,000 units at NYCHA buildings over several years, a press release from the state said.

“By investing in the development and installation of energy-efficient heat pumps at NYCHA facilities, New York State is fulfilling its promise to ensure all New Yorkers have access to affordable and comfortable housing,” Gov. Kathy Hochul said in the release. “The Clean Heat for All Challenge directly addresses the decarbonization of buildings — New York’s largest source of greenhouse gas emissions — with a thoughtful approach and use of innovative technology that focuses on the safety, comfort, and livability of NYCHA residences.”

“The innovative heat-pump units being installed at public housing in New York City this fall are only the start of the Power Authority’s commitment to deliver energy-efficient heating and cooling systems for NYCHA residents,” said NYPA CEO Justin E. Driscoll. “This first phase of unit installations will provide us with the insight we need to honor the initial investment of producing and installing all 30,000 units, benefitting residents with reliable heating and cooling and shrinking New York City’s carbon footprint.”

Under the Clean Heat for All program, NYCHA will purchase and install the new equipment as well as provide additional improvements to building envelopes and domestic hot water systems. NYPA is providing upfront financing and supporting the implementation of the challenge, including with $70 million in financing approved by the NYPA Board of Trustees in 2022, to fund the development of cold-climate, packaged window heat pumps. NYSERDA is providing $13 million for the demonstration phase, including procurement specification development, initial purchasing, and monitoring and performance assessment, with funds approved through the Regional Greenhouse Gas Initiative Operating Plan.

The packaged window heat-pump units developed to meet the Clean Heat for All Challenge will enable rapid, low-cost electrification of space conditioning in multifamily buildings by reducing or eliminating many of the cost drivers inherent to installing existing heat-pump technologies in occupied apartments, including electrical system upgrades, lengthy refrigerant piping, and drilling through walls. The heat pump manufacturers — Midea America and Gradient Comfort — will each supply 36 units this fall for comprehensive monitoring over the course of the upcoming winter. NYCHA began installing Midea’s America’s units in July and will begin installing Gradient’s units in December.

Midea America, which was awarded a contract for 20,000 units, is a global appliance manufacturer founded in 1968 with headquarters in China and the U.S., 11 factories around the globe, and an annual output of 67 million units.

Founded in 2015, Gradient Comfort is a startup based in San Francisco, California, that was awarded a contract to manufacture 10,000 units. The company intends to manufacture the product in the United States.

The Clean Heat for All Challenge directly supports the goals of New York State's Climate Leadership and Community Protection Act (Climate Act) and the New York City Climate Mobilization Act, which both call for a 40% reduction in greenhouse gas emissions from buildings by the year 2030. By leveraging NYCHA's portfolio of 2,198 residential buildings, Clean Heat for All is designed to spur innovation and the growth of the cold-climate window heat-pump market in the United States by positioning NYCHA as an early adopter of this technology while also providing NYCHA residents with modern systems of heating and cooling that they can directly control.

NYCHA estimates a need for approximately 156,000 cold-climate window heat pumps over the next five to ten years in order to to electrify its portfolio and achieve an 80% reduction in greenhouse gas emissions by 2050 per New York City's Local Law 97.