Performance-Based Electric Efficiency Incentives for Existing Facilities Program

These incentives are offered for cost-effective energy efficiency projects to an applicant that delivers verifiable annual electric energy savings. Please note that all projects must include at least two measure categories per site, as defined below, and no measure category may account for more than 75% of the anticipated annual kWh savings.

Eligible measure categories include, but are not limited to:

  • Lighting and Lighting Controls
  • HVAC and HVAC Controls (including Chillers)
  • Motors and Variable Frequency Drives (VFD) that are not part of the HVAC system
  • Monitoring-Based Commissioning 
  • Building Envelope Improvements
  • Energy Management Advanced Controls Systems (EMS) 
  • Elevators


Tier Description Incentive Rate
1 The electric efficiency improvements cause annual kWh reductions less than or equal to 30% of current annual usage at the Facility. $0.10/kWh
2 The electric efficiency improvements cause annual kWh reductions greater than 30% but less than or equal to 50% of current annual usage at the Facility. $0.12/kWh
3 The electric efficiency improvements cause annual kWh reductions greater than 50% of current annual usage at the Facility. $0.15/kWh

Incentive Cap

While incentives are based upon the amount of electrical energy saved in one year, the total incentive cannot exceed 50% of the project cost. project cost may include equipment, labor, and engineering expenses. Incentives are also capped at the lesser of a one (1) year simple payback or $500,000.

Minimum Project Size

Unless otherwise approved by NYSERDA, Performance-Based projects must save at least 250,000 kWh annually. 


Facility owners, management companies, and tenants with the authority to make improvements on the specified building(s) are eligible. Facilities may apply either on their own behalf or through their designated applicant. A facility can be a building, structure, or a campus of contiguous buildings.

To be eligible, a facility must pay into the System Benefits Charge (SBC) as an electric distribution customer through one of the following utility companies:

Utility Company Electric
Central Hudson Gas & Electric Corporation
Consolidated Edison Company of New York, Inc.*
National Grid Generation d/b/a National Grid
New York State Electric & Gas Corporation
Orange and Rockland Utilities, Inc.
Rochester Gas and Electric Corporation

Once an application has been approved by NYSERDA, the Applicant has two years to complete the project.

Energy Conservation Measures must meet the following criteria:



All motors must qualify as National Electric Manufacturers Association (NEMA) Premium Efficiency Motors.


All HVAC equipment must exceed ASHRAE 90.1 2007 by at least 2%.


Performance-Based incentives are offered for cost-effective energy efficiency projects that deliver verifiable annual energy savings resulting from the installation of information gathering technologies that provide critical data to monitor and alter building operations. Additionally, NYSERDA seeks to promote clear communication of energy usage to the occupants of commercial and institutional spaces, thereby facilitating a coordinated means to reduce consumption and lower costs.

MBCx incentive payments are intended to cover the materials and engineering costs associated with upgrading energy data collection hardware and the cost of energy management services needed to achieve energy savings.

Persistence – MBCx incentives are offered for upgrades and initiatives that generate energy savings based upon improved operation. Eligible savings must be quantified by an Engineering Analysis and a commissioning plan designed to ensure the persistent realization of energy efficiency based upon operational changes for a period of at least five years.

Persistence must be demonstrated through externally contracted monitoring services or scheduled in-house staff training. Documentation of persistence may include invoices, scopes of services, and training materials. incentive applications missing, in whole or in part, an initial scope targeting the monitoring, isolation and assurance of claimed energy savings may be rejected at NYSERDA’s sole discretion.

Measurement and Verification (M&V)

M&V is required for a period up to one year for the following:

  • Lighting and Lighting Control systems saving more than 1,000,000 kWh annually
  • All other electric efficiency measures saving more than 500,000 kWh annually in a single category
  • All projects that include MBCx
  • All projects exceeding 30% savings
  • At NYSERDA’s discretion, M&V may be required for projects with less than 500,000 kWh in annual savings

NYSERDA’s Technical Reviewer will develop an M&V plan in collaboration with the Applicant. NYSERDA will pay up to 60% of the incentive upon installation and the balance after NYSERDA receives and approves the final M&V report. The final incentive will be adjusted based on the M&V results. Projects failing to perform to M&V savings estimates may be required to reimburse NYSERDA for any over payment.

Ineligible Projects

  • Power Quality, Power Factor improvements, and Fuel Switching
  • Installation of T12 and T8 fluorescent lighting technology
  • Installation of Compact Fluorescent Lighting (CFL) technology
  • Re-lamping projects. Re-lamping is defined as the replacement of only the removable lamp(s) in a light fixture
  • Ineligible MCBx activities include, but are not limited to, occupant behavior-based initiatives such as turning off lighting or closing blinds to reduce internal heat gain and operational improvements without continuous enhanced monitoring capability
  • Multifamily buildings are not eligible for Existing Facilities Program incentives