Performance-Based Incentives for Existing Facilities Program

Performance-Based incentives encourage implementation of larger-scale projects that increase energy efficiency and produce verifiable annual energy savings. These incentives are available on a pro-rated basis related to the annual kwh or MMBtu savings generated (see summary table below).

Performance-Based incentives must meet minimum energy saving thresholds, and require an Engineering Analysis to substantiate energy savings after project completion. In some cases, post-installation Measurement and Verification is also required.

Applicants are encouraged to bundle projects to meet the Performance-Based incentive minimum. of at least $30,000. Please submit applications within 90 days of contracting for the project to allow time for processing. 

For additional details, please refer to the Frequently Asked Questions.

Start the application process.

Performance-Based Incentive Categories

  • Electric Efficiency
    Incentives are offered to offset capital costs of cost effective efficiency projects that reduce electric consumption at eligible facilities.
  • Natural Gas Efficiency 
    Incentives are offered to offset capital costs of cost-effective efficiency projects that reduce natural gas consumption at eligible facilities.
  • Demand Response
    Incentives are offered to offset a portion of the technology costs that enable facilities to participate in demand response programs.
  • Monitoring-Based Commissioning (MBCx) 
    Incentives are offered to support the implementation of continuous commissioning programs, as well as protocols and systems that promote persistent and measurable operational-based energy savings.

Summary of Performance-Based Incentives

Base Incentive Upstate Downstate
Electric Efficiency $0.12/kWh $0.16/kWh
Energy Storage $300/kW $600/kW
Natural Gas $15/MMBtu $20/MMBtu
Demand Response $100/kW $200/kW
Monitoring-Based Commissioning $0.05/kWh $0.05/kWh

*Increased incentive rates will be offered to eligible Con Edison electric customers for energy improvements that provide system-coincident peak demand reduction during the summer months. Please see our Demand Management Program for more details.

After Your Consolidated Funding Application Has Been Submitted

  • NYSERDA will review the application for general eligibility and completeness, and contact the Applicant or designated contact if any additional information is needed. All projects require a recent full month’s utility bill for the facility, and most projects require cut sheets for any equipment that will be installed. Additional documentation may be required.
  • When the application is complete, the project will be assigned a NYSERDA Project Manager and a Technical Consultant. If the application is determined to be eligible, additional information will be required.
  • The Project Manager will request that the Applicant submit an Engineering Analysis. The Engineering Analysis includes, but is not limited to, a project description, economic evaluation, energy savings calculations, and any outstanding equipment specification sheets. Some projects will require a Measurement and Verification (M&V) plan as part of the Engineering Analysis.
  • NYSERDA, or the Technical Consultant, will review the Engineering Analysis and conduct a pre-installation site inspection. NYSERDA may request revisions to the Engineering Analysis as necessary. Upon approval of the Engineering Analysis and pre-installation site inspection, NYSERDA will notify the Applicant that they can implement the project. (Applicants that proceed with installation before NYSERDA approves the Engineering Analysis and conducts the pre-installation site inspection do so at the risk of not receiving an incentive.) 
  • After the Applicant implements the project, the Applicant must notify NYSERDA or the Technical Consultant that the project is complete and ready for a post-installation inspection. 
  • NYSERDA or its consultant will conduct a post-installation inspection and collect invoices and any other remaining items. (Demand Response projects must demonstrate participation in a demand response program; see the Demand Response incentives page for details.)
  • Upon approval of all final deliverables, including any required M&V, NYSERDA will provide the incentive payment to the Applicant. Those projects requiring M&V must complete it in accordance with the approved Engineering Analysis. When the M&V is completed, NYSERDA or the Technical Consultant will review the results and release any remaining funds, adjusted based on the M&V results as applicable.