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


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