Incentives & Financing

Unlock valuable incentives and financing that lower the total cost of capital improvements for your property:

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Multifamily Program Performance Incentives

You can receive incentives up to $1,500 per unit to make improvements that lower your energy use. The more energy savings you target, the more incentives you can receive.

Projected Energy Savings Target Total Incentive 
(per unit)
Construction Completion*
(per unit)
Performance Incentive
(per unit)
20% ‐ 24% $700 $600 $100
25% ‐ 29% $800 $700 $100
30% - 34% $1,000 $800 $200
35% + $1,500 $1,000 $500
40% + $3,500 See High-Performance Component below

*Buildings 50 units or less and not subject to Local Law 87 in New York City are eligible to receive a pre-payment of $100 per unit from the construction incentive once NYSERDA approves the building analysis. The construction incentive is paid out at 100% construction completion. However, buildings that use a construction manager to oversee the project may qualify for a payment of one-half of the construction incentive at 50% completion.

High-Performance Component

When you target 40%+ energy savings and an energy use intensity (EUI) score of 100 or less, your building becomes eligible for incentives up to $3,500 with NYSERDA’s High-Performance Component.

Projected Energy Savings Target Total Incentive 
(per unit)
Modeling Incentive 
(per unit)
50% Construction Incentive
(per unit)
Construction Completion
(per unit)
Performance Incentive
(per unit)
40% + and EUI ≤ 100 $3,500 $100 $1,400 $1,500 $500

 

To receive the most money per unit, you and your solutions providers should work together to integrate on-site renewable energy into your project. NYSERDA offers incentives for solar, energy storage, and small-scale wind that can be combined with Multifamily Performance Program incentives. For more information about the high-performance component, download our Multifamily Performance Program High-Performance Component Guidelines[PDF].

Financing for Multifamily Buildings

There are affordable and flexible financing opportunities in New York State to help you make cost-effective energy improvements to your building:

NYSERDA Financing

How it works. NYSERDA offers building owners, managers, and developers a unique opportunity to obtain low-interest financing on energy-saving building and renovation projects through private commercial lenders. NYSERDA provides lenders up to 50% of the loan principal, to a maximum of $5,000 per unit or $500,000 per project. This is at a 2% interest rate. For example, a borrower who requests $50,000 to fund an approved project will pay market-rate interest on only $25,000; the remaining $25,000 will have a 2% interest rate.

Get Started. For any questions, contact us at MultifamilyPrograms@nyserda.ny.gov.

Financing for Borrowers

How it works. Any existing residential building, including gut-rehab projects, with five or more units in New York State is eligible. Both market-rate and affordable housing projects are eligible.

Get started. Select a NYSERDA Multifamily Building Solutions Provider. Your provider will help you develop an energy reduction plan and qualify your plan for low-interest financing. You will then select a lender of your choice.

Financing for Lenders

How it works. Use your lending power to create energy savings in New York State through low-interest financing. It can serve as a powerful marketing and business development tool for your lending institution. Being able to lend money at a below-market rate gives you several advantages, including:

  • Enhancing your position against competitors who don’t participate
  • Gaining experience in an emerging sector of the financing industry
  • Introducing you to new customers who may benefit from your other services

Get started. Once you are working with a customer that has completed a NYSERDA-approved Savings Verification and Information Tool (SAV-IT) and a signed Pre-Approval form, complete and submit the Participation Agreement[PDF] to NYSERDA.

NYCEEC Financing

How it works. The New York City Energy Efficiency Corporation (NYCEEC) is a financial services nonprofit organization that makes loans to building owners and various other entities for energy efficiency and clean energy projects. NYCEEC works closely with borrowers to structure loans that meet their needs and achieve cost and energy savings. Benefits to borrowers include:

  • Flexible and innovative loan structures that can match construction milestones and bridge incentive payments
  • Financing to cover the cost of equipment, construction and eligible soft costs such as energy audits
  • Loan sizes start at $100,000

Getting started. Visit NYCEEC’s website to learn how you can finance your clean energy upgrades and start saving money. For more information contact, Posie Constable at 646-797-4615 or by email at pconstable@nyceec.com or Erangi Dias at 646-797-4622 or by email at edias@nyceec.com.

PACE Financing through EnergizeNY

How it works. Low-cost and long-term Property Assessed Clean Energy (PACE) financing can be used for energy efficiency improvements to multifamily properties. PACE financing is available through the Energy Improvement Corporation’s EnergizeNY Finance program in participating municipalities Link opens in new window - close new window to return to this page.. Under the PACE financing model, a property owner opts to finance energy improvements via a special tax charge to the property. Terms and rates are much more favorable to the borrower than what would be available through standard commercial financing, especially for affordable-rate buildings.

Under PACE, the property owner chooses a Multifamily Performance Partner who develops an Energy Reduction Plan, which identifies the cost of a scope of work and the eligible PACE loan amount. The loan funds are disbursed to the property owner after construction is complete. That loan is then repaid through an assessment on the annual property taxes. For bridge and construction loans, you can leverage the NYSERDA Financing option.

Getting started. Visit the EnergizeNY website for more information on how to finance upgrades to multifamily properties.

Affordable Housing Agency Financing

How it works. There are multiple financing programs and resources available through New York State affordable housing agencies. These programs help multifamily building owners finance upgrades to their properties and reduce operating costs.

Get started. Visit the below affordable housing agency sites to learn more about financing opportunities.