Demand Response Incentives

Performance-Based Demand Response incentives are offered to offset the cost of equipment that enables Facilities to participate in Demand Response programs. Common measures include: load shedding controls, automation equipment and new generation equipment.


Upstate Downstate
Demand Response $100/kW $200/kW
Bonus Incentives - Fleet Integrated Demand Response
Room Air Conditioners $100/kW $100/kW
Load-Shedding Ballast $50/kW $50/kW

Incentives Caps

The total incentive cannot exceed the lesser of $2,000,000 or 75% of the Project cost. Project cost may include equipment, labor, and engineering expenses. The total incentive cap of 75% of the Project cost will be applied to the total incentive for projects that bundle Performance-Based (electric and/or gas efficiency) and Demand Response incentives.

Minimum Project Size

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


All applications will be reviewed and accepted or rejected at NYSERDA’s discretion. Existing generating equipment is ineligible for funding.

All Facilities must register in the New York Independent System Operator’s (NYISO’s) Special Case Resource (SCR) Program, Demand Side Ancillary Services Program (DSASP), or a utility Demand Response Program.

NYSERDA incentives for kW reductions will not exceed the kW committed to those respective programs.

Generator projects must be located within Consolidated Edison territory to be eligible for funding. New generators must meet the most recent manufacturing New Source Performance Standards.

  • Effective until December 31, 2010:
    - Engines less than or equal to 751 HP must be Tier 3, and engines greater than 751 HP must be Tier 2
  • Effective on and after January 1, 2011:
    - Engines less than or equal to 173 HP must be Tier 3, and engines greater than 173 HP must be Tier 4 Interim

If future DEC regulations are stricter than these requirements, then DEC regulations will supersede these requirements.

Generator Run Hours – Generators must run only during DR events and for limited testing or emergency purposes.

Bonus Incentive Fleet Integrated Demand Response

Bonus incentives are available for “fleet” installation of new demand response-enabled room air conditioners (window, through-the-wall, PTAC & PTHP) and load shedding ballasts. Bonus incentives are offered to offset the cost of adding integrated/tamper-proof direct load control and shedding capability to the fleet.

Room Air Conditioner Bonus

  • Minimum Project size of 100 enabled window, through-the-wall, PTAC or PTHPs in a single Facility, 7,000 Btu cooling or larger
  • Bonus incentive of $100/kW of direct load control capacity added to the fleet
  • Maximum bonus incentive of $350,000 per Project.
  • Air conditioners must be ENERGY STAR® and PTAC/PTHPS must meet the Energy Conservation Construction Code of New York State
  • Verified proper disposal of decommissioned air conditioners is required

Load Shedding Ballasts Bonus

  • Bonus incentive of up to $50/kW of load shedding capacity enabled by a load-shed ballast system
  • Maximum bonus incentive of $150,000 per Project
  • Lighting must meet the applicable eligibility criteria stated under the Performance-Based Incentives - Electric Efficiency
  • The entire enabled load-shed capacity must be registered with the NYISO Installed Capacity (ICAP) SCR program
Last Updated: 12/11/2013