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Natural Gas Efficiency Performance-Based Incentives

Performance-Based natural gas incentives are offered for cost-effective energy efficiency projects to an Applicant that delivers verifiable annual natural gas energy savings. If you have any questions about these incentives, please contact Outreach@nyserda.ny.gov.


Incentive Upstate Downstate
Natural Gas Efficiency $15/MMBtu $20/MMBtu

Incentive Caps

While incentives are based upon the amount of natural gas saved in one year, the total incentive cannot exceed the lesser of $200,000 or 50% of the Project cost. Project costs may include equipment, labor, and engineering expenses.

Minimum Project Size

Unless otherwise approved by NYSERDA, Performance-Based projects must qualify for an incentive of at least $30,000. Smaller projects should consider Pre-Qualified incentives.


Natural gas measures include, but are not limited to:

  • Furnaces
  • Boilers
  • Water heaters
  • Process heating equipment
  • Steam/hot water distribution piping insulation
  • Boiler controls systems
  • Flue gas economizers
  • Heat recovery

Measurement and Verification (M&V)

Measurement and Verification will be required at NYSERDA’s discretion. For projects requiring M&V, the Applicant will create an M&V Plan in collaboration with NYSERDA’s Technical Consultant. Projects requiring M&V will be subject to a 40% withholding of the total incentive, which is payable after NYSERDA receives and approves the final M&V report. Final incentive levels may 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 overpayment.

Last Updated: 12/11/2013