ALBANY, N.Y. — The Building Decarbonization Coalition (BDC) and six heat pump manufacturers — A.O. Smith, Fujitsu General America, Carrier, LG Electronics USA Inc., Mitsubishi Electric US Inc., and Daikin U.S. Corp. — have filed comments with the New York State Public Service Commission (PSC) as part of the commission’s interim review of the state’s New Efficiency: New York (NE:NY) portfolio of energy-efficiency and building-electrification programs for 2026 through 2030.
Funding for the NE:NY portfolio is estimated to total at least $1 billion per year through the five-year period, for a total of at least $5 billion, according to a press release from the BDC.
The group’s comments focus on the state’s primary building electrification program, NYS Clean Heat, which combines market development efforts with customer incentives to help lower the cost of installing heat pumps for New Yorkers.
“We urge New York’s Public Service Commission and utilities to incorporate lessons learned from the 2020-2025 New Efficiency: New York program delivery period and make program design improvements that would speed the state’s transition to clean heat and cooling, setting the state on a course to meet its Climate Act targets and commitments, including Governor (Kathy) Hochul’s promise to deliver two million climate-friendly electrified or electrification-ready homes by 2030,” said Malak Nassereddine, New York senior manager, utility and regulatory policy, at the BDC.
“These improvements to the NYS Clean Heat program will help reduce climate pollution, lower New Yorkers’ energy bills, and improve health outcomes, while also helping to expand New York’s clean energy workforce and its heat pump market,” Nassereddine added.
As described in the comments submitted by BDC and the heat pump manufacturers, the PSC should update the NYS Clean Heat program with cost, payment, and program-delivery improvements that would “meet people where they are” by making it easier for New York households and contractors to participate, the press release said.
Examples of proposed improvements included:
• Simplifying and speeding the application process by creating a single uniform application with an easy-to-navigate database of all incentive programs, thus reducing the amount of research and other work building owners and contractors need to do to apply for Clean Heat incentives.
• Creating an optional pre-approval process that would enable building owners and contractors to ensure they are eligible for incentives before installing heat pumps or beginning related energy-efficiency and building-electrification work.
• Bridging the energy gap by having utilities give homeowners the option of temporarily renting heating equipment to address immediate heating needs while heat pumps are being installed.
• Creating a statewide emergency replacement protocol that encourages building owners to replace fossil-fuel heating equipment that’s nearing the end of its useful life by offering them electrical service and similar building upgrades that would make heat-pump installations easier.
• Providing program offerings, such as electrical panel upgrades and building envelope improvements, that address barriers to electrification, thus making heat-pump adoption possible for more New Yorkers and lowering the energy bills they’ll receive after heat pumps are installed.
• Creating opportunities for neighborhood-scale decarbonization by encouraging cross-utility and cross-program collaboration that leverages economies of scale, coordinates efforts, and minimizes neighborhood disruptions, reducing the total cost of the energy transition while delivering additional energy savings and encouraging a more equitable distribution of clean energy benefits.
“By implementing the NYS Clean Heat program, the PSC can not only accelerate New York’s transition to a clean-energy future, but make this transition easier, more affordable, and equitable,” said Nassereddine.
