Heat Recovery Project Development
NYSERDA’s Heat Recovery Program is focused on energizing the New York marketplace for heat recovery solutions as an economical approach to decarbonization for a broad swath of existing buildings. The Program provides cost-share support for project assessment and design development to integrate heat recovery energy conservation measures within existing building retrofit and decarbonization plans.
By developing a robust pipeline of heat recovery retrofits, the Program aims to accelerate confidence in heat recovery as a promising approach to decarbonization and to increase the number of building retrofit projects incorporating heat recovery energy conservation measures.
In August 2024, the Program introduced competitive implementation funding for heat recovery demonstration projects and open enrollment funding for manufacturers qualified through RFQL 5217 – Heat Recovery Solutions 
for business development services.
How It Works
The Program brings together consulting engineers, building owners and operators, and heat recovery solution providers to develop a robust pipeline of heat recovery retrofits. The Program provides cost-share to applicants for four categories of activities:
Category 1: Heat Recovery Opportunity Assessment
The Heat Recovery Opportunity Assessment Category provides cost-share support for consultants to assess a property’s heat recovery opportunity by quantifying the heat that is currently rejected and analyzing its potential to be repurposed. Assessments are meant to inform the building owner’s decision on whether to move forward with Heat Recovery Project Design. See sample Energy Flow Diagrams [PDF]
Applicants can receive funding for up to 75% of total project cost capped at $40,000 to create and deliver opportunity assessments.
To apply for Category 1, applicants must complete the Budget Template, Category 1 Scope of Work Template , and upload the completed budget and scope of work to JotForm through November 17, 2025, or until funds are fully committed.
Category 2: Heat Recovery Project Design
The Heat Recovery Project Design Category provides cost-share support for consultants to develop an implementation-ready, technically, and economically viable design of a heat recovery system for an existing property. Project designs should have the potential to significantly improve the heat recovery performance of existing buildings. View examples of eligible heat recovery design concepts [PDF].
Applicants can receive funding for up to 75% of total project cost, capped at $80,000 to create and deliver designs for an existing property.
To apply for Category 2, applicants must complete the Budget Template, Category 2 Scope of Work Template , and upload the completed budget, scope of work and documentation validating the opportunity for heat recovery at the site (e.g. completed FlexTech reports or feasibility studies, etc.) to JotForm through November 17, 2025, or until funds are fully committed.
Category 3: Heat Recovery Demonstration
The Heat Recovery Demonstration Category provides implementation funding for projects to demonstrate the technical and economic feasibility of innovative heat recovery solutions in existing properties in New York State. Through Category 3, NYSERDA seeks projects that use innovative heat recovery solutions to deliver significant energy and emissions savings and that can be a model for replication across the State’s existing building stock. Proposals can receive up to $2,000,000 of implementation funding for the proposed heat recovery project. Cost-share from the project team is a requirement for Category 3 projects. For projects located in disadvantaged communities, defined by the Climate Justice Working Group , or consisting of affordable multifamily housing, the project team must contribute a minimum of 25% of the total project cost. For all other projects, the project team must contribute a minimum of 50% of the total project cost.
Category 3 will accept multiple rounds of proposals, subject to funding availability, with the next round due on June 3, 2025 by 3:00 PM ET. Proposals will be evaluated based on the Proposal Evaluation Criteria outlined in the Program Summary document.
To apply for Category 3, applicants will submit a proposal via the apply online link on the Heat Recovery Project Development Program - Category 3 Demonstration page . A complete proposal consists of the following:
- Budget (see template)
- Category 3 Proposal (see template)
- Either a Basis of Design (BOD) narrative, one-line concept diagrams and/or schematic design drawings, if available
- Completed Heat Recovery Opportunity Assessment or equivalent study
Category 4: Manufacturer Growth Initiative
The Manufacturer Growth Initiative Category provides cost-share to solution providers qualified by NYSERDA’s RFQL 5217 - Heat Recovery Solutions for business development services. Applications from eligible applicants will be accepted on a first come, first served basis.
To apply for Category 4, eligible applicants must complete the Budget Template, Category 4 Scope of Work Template and upload the completed budget and scope of work to JotForm through November 17, 2025, or until funds are fully committed.
Program Eligibility Requirements
Categories 1-3: Heat Recovery Assessment, Design, and Demonstration
To qualify for Categories 1-3 of the Heat Recovery Program, project teams must include an eligible consultant and a customer representing an eligible building. Either party may apply.
- Consultants are engineering or sustainability consultants with demonstrated experience and expertise in clean energy services delivery to commercial, industrial and/or multifamily customers in New York State.
- Buildings must be located in New York State.
- An existing property of any size that falls under the classification of multifamily, commercial, industrial, and/or institutional buildings is eligible. New construction and single-family homes are not eligible for this program.
- Affordable multifamily housing projects may qualify for additional cost-share. Review the Affordable Multifamily Buildings Guidelines [PDF] for the definition of affordable housing and acceptable forms of affordability verification.
Resources
- Heat Recovery Program PON 5547 Updates Webinar (February 19, 2025)
- For full eligibility, application and deliverable requirements for Categories 1, 2, and 4, see the funding opportunity Heat Recovery Project Development Program – Categories 1, 2, 4 .
- For full eligibility, application and deliverable requirements for Category 3, see the funding opportunity Heat Recovery Project Development Program - Category 3 Demonstration .
Contact
Email program questions to [email protected].
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