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February 13, 2008
Albany, NY -- For a limited time, apartment buildings, co-ops, and condos in Con Edison gas territory can receive significant cash incentives for upgrading natural gas heating equipment, such as boilers and hot water heaters. As a result of the rate case settlement between Con Edison and the New York State Public Service Commission, high-efficiency gas heating upgrades can be subsidized through the New York State Energy Research and Development Authority (NYSERDA).
“With rising energy costs, there’s no better time than now to start making efficiency improvements,” said NYSERDA President and CEO Paul D. Tonko. “This is not only an opportunity for multifamily building owners to significantly offset the up-front cost of upgrading their natural gas heating equipment, but they will also save money and energy for years to come.”
Gas is billed in therms, units of gas that the utility employs to measure usage. Eligible customers can receive a $2 payment per therm of gas savings that result from heating upgrades. Larger buildings can use tens of thousands of therms in just a month, so if a building upgrades its natural gas equipment and saves just 50,000 therms in a year, a $100,000 incentive would be paid to the owner. In addition, the owner would see about a $50,000 savings in the annual utility bill.
And affordable housing or apartment buildings with low-income residents can receive $2.50 per therm saved. To be considered affordable housing, 25 percent or more of the building’s residents must earn less than 80 percent of the state’s median income, which is currently $41,544 for an individual and $72,100 for a family of four or more. Other buildings designated as affordable housing by the New York State Division of Housing and Community Renewal, the New York City Department of Housing Preservation and Development, or by U.S. Department of Housing and Urban Development, do not have to meet the income requirement guidelines.
In addition, NYSERDA’s New York Energy $martSM Loan Fund can provide an interest rate reduction, of a participating lender’s normal loan interest rate, for a term up to 10 years on loans for certain energy-efficiency improvements and/or renewable technologies. Con Edison customers may be eligible to receive an interest rate reduction up to 6.5% (650 basis points) less than a participating lender’s or lessor’s normal market rate.
“There’s not a good reason why a building owner shouldn’t do this,” said Tonko. “This is a win-win situation that can reduce energy bills, make your building more valuable, and improve the comfort for the residents.”
To be eligible, the multifamily building must have more than five units, must be a natural gas customer in Con Edison territory on firm-rate structure, with more than 50 percent of the gross heated square footage dedicated to residential tenants.
The building owner or property manager must have an energy assessment conducted before and after making any improvements to determine what the energy efficiency opportunities are and how much gas will be saved annually. NYSERDA’s incentive payment is based on the total estimated annual gas savings of the upgrade. Eligible improvements include replacing natural gas boilers, domestic hot water heaters, replacing radiator valves, and installing programmable thermostats and heating controls.
Gas customers in Con Edison territory, including businesses, not-for-profits, and homeowners eligible to receive incentives for installing high-efficiency gas equipment (incentives vary based on customer type), and residential customers, please visit NYSERDA's Residential page for additional information. Businesses, commercial/industrial customers, and not-for-profits should visit NYSERDA for more information.
NYSERDA uses innovation and technology to solve some of New York’s most difficult energy and environmental problems in ways that improve the State's economy. To learn more ways to save energy, please visit NYSERDA's Residential page or call 1-877-NY-SMART (1-877-697-6278).
Collen Ryan, NYSERDA
866-NYSERDA, Ext. 3359
Mary Ingram Schatz
Last Updated: 10/19/2012