Governor Hochul unveils $15 million initiative to expand innovative building electrification and energy efficiency projects across New York

Albany, New York – New York is taking another major step in its long-running push toward cleaner and more efficient buildings, this time by opening the door to millions of dollars in funding aimed at accelerating new energy technologies across the state.

Governor Kathy Hochul announced that $15 million is now available through the Innovation for Affordable Building Electrification program, an initiative designed to help develop and expand advanced building solutions that improve energy performance, lower emissions, and reduce costs for property owners and occupants alike. The program focuses on technologies that can be scaled in existing buildings, a critical challenge in a state where aging residential and commercial properties account for a significant share of energy consumption and greenhouse gas emissions.

The funding opportunity arrives as New York continues pursuing aggressive climate goals that rely heavily on reducing emissions from buildings, one of the largest contributors to statewide pollution. State officials say the new investment is intended not only to support cleaner energy systems, but also to improve affordability and reliability for residents navigating rising utility costs and increasing energy demand.

“New York State is a leader in advancing scalable building solutions and making the latest efficiency solutions more accessible to building owners,” Governor Hochul said. “Through the Innovation for Affordable Building Electrification program, we are ensuring that modern building solutions work in harmony to make energy go further while balancing reliability with comfort and affordability.”

The program will be administered through the New York State Energy Research and Development Authority, commonly known as NYSERDA. Officials say the initiative is focused on helping move promising technologies from early-stage concepts into practical solutions that can be deployed in real-world buildings throughout the state.

Eligible applicants include researchers, educational institutions, manufacturers, laboratories, trade associations, building owners, and property managers, among others. The state is especially interested in projects that can improve energy efficiency, electrify heating and cooling systems, better manage electricity demand, and improve indoor air quality.

The announcement underscores a growing reality facing states across the country. While renewable energy generation often receives the most public attention, the buildings sector remains one of the most difficult and expensive areas to modernize. Many older homes and commercial buildings were built decades before current efficiency standards existed, leaving owners with costly upgrades and outdated systems that strain the electrical grid.

New York officials believe innovation can help close that gap.

“NYSERDA is interested in partnering with innovators and industry leaders to accelerate the development and adoption of next generation building technologies that can deliver real value and benefits for New Yorkers,” NYSERDA President and CEO Doreen M. Harris said. “By investing in solutions that support building electrification and improve energy performance, we are accelerating the delivery of cutting-edge technologies to market that help manage energy demand, reduce strain on the grid and lower costs for occupants and building owners alike.”

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The program centers around three major energy categories that officials say are essential to modernizing existing buildings.

The first focuses on efficiency. That includes projects aimed at permanently reducing energy demand through improved building envelopes, upgraded insulation materials, air sealing measures, or better ventilation systems. These kinds of improvements are often viewed as some of the most effective ways to reduce long-term energy consumption because they address the underlying performance of a structure itself.

The second category targets electrification, particularly clean heating and cooling systems. Proposed projects may include advanced heat pump technologies for space conditioning or domestic hot water systems designed to replace fossil fuel-based equipment. Electrification has become a cornerstone of New York’s climate strategy as policymakers attempt to reduce dependence on natural gas and heating oil.

The third category involves load management and grid interaction. This area includes technologies capable of helping buildings respond more efficiently to periods of high electricity demand. Examples include electric load controls, energy asset management systems, electrification-enabling equipment, and integrated battery storage solutions.

State officials say improving load flexibility will become increasingly important as more homes and businesses transition to electric heating systems, electric vehicles, and renewable power sources. Smarter buildings, they argue, can help reduce stress on the power grid while lowering operational costs.

One of the most notable aspects of the initiative is its emphasis on equity and environmental justice. According to the state, projects that benefit low- to moderate-income communities or disadvantaged areas identified by New York’s Climate Justice Working Group will receive priority consideration.

That focus reflects a broader effort by the state to ensure that climate investments reach communities that have historically faced higher pollution levels, aging housing stock, and disproportionate energy burdens.

Public Service Commission Chair Rory Christian said the building sector remains central to New York’s long-term climate strategy.

“Catalyzing innovative solutions within the buildings sector, which remains one of the largest contributors to the state’s greenhouse gas emissions, is fundamental to achieving the state’s climate goals. The funding announced today by Governor Hochul and NYSERDA will ensure that residential and business consumers experience health, affordability, and other quality of life benefits in tandem with progress toward state goals.”

Industry leaders and energy advocates also praised the initiative, describing it as an important bridge between emerging technology and large-scale deployment.

“New York State’s building stock represents one of our greatest opportunities — and obligations — for climate action,” Building Energy Exchange CEO Richard Yancey said. “The Innovation for Affordable Building Electrification program reflects exactly the kind of forward-thinking investment needed to move promising technologies from concept to scale in the buildings where New Yorkers live and work. At the Building Energy Exchange, we see every day how critical it is to equip our industry with practical, affordable solutions — and we’re excited to see this initiative prioritize the communities that stand to benefit most.”

Lawmakers also framed the funding as part of a larger economic and environmental transition taking place across the state.

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“New York’s clean energy future depends on our ability to invest in innovation that makes sustainability affordable, accessible, and practical for every community,” State Senator Kevin Parker said. “This funding represents a critical step toward modernizing our building infrastructure, lowering energy costs for families and businesses and ensuring that disadvantaged communities are not left behind in the transition to a cleaner economy. By supporting cutting-edge technologies in energy efficiency, electrification, and load management, New York is continuing to lead the nation in building a more resilient, equitable and sustainable future.”

Assemblymember Didi Barrett echoed those concerns while emphasizing the role buildings play in statewide emissions.

“Today’s energy challenges require innovative solutions. This funding will help develop and demonstrate new solutions to decarbonize our state’s existing building sector, the largest source of statewide emissions, all while increasing efficiency, managing demand and reducing cost.”

Applications for the funding opportunity are due July 23, 2026, by 3 p.m. Eastern Time. Before submitting final proposals, applicants may also send optional Letters of Intent to NYSERDA to receive feedback regarding eligibility requirements. Those letters must be submitted no later than July 2, 2026, at 3 p.m. ET.

To help guide interested participants through the process, NYSERDA plans to host a webinar on June 3, 2026, at 1:30 p.m. ET. The session will cover solicitation details, project requirements, and the application process.

The new funding program builds upon New York’s broader investments in clean energy research and development. NYSERDA currently invests more than $96 million annually through innovation and research programs aimed at attracting energy technology developers, reducing financial risk for investors, and accelerating clean energy adoption.

According to the state, every dollar invested by NYSERDA leverages roughly $15 in additional public and private investment. Officials also noted that the agency has partnered with more than 900 companies and helped bring over 300 products to market for consumers, businesses, and utilities.

Funding for the electrification initiative comes through the New York State Public Service Commission’s 2025 Innovation and Research Order, which supports statewide clean energy innovation programs running from 2026 through 2030.

The announcement also ties directly into New York’s broader climate agenda, which calls for an affordable and equitable transition toward a clean energy economy by 2050. State leaders have repeatedly emphasized that the transition is intended not only to reduce emissions but also to create jobs, strengthen infrastructure, and lower household energy costs over time.

New York’s long-term climate framework includes efforts spanning transportation, energy production, waste reduction, and building modernization. Officials say at least 35 percent of the benefits from climate-related investments are expected to flow to disadvantaged communities.

At the same time, the state continues advancing its $1 billion Sustainable Future Program, which aims to reduce emissions, cut energy costs, and support green job growth across New York.

For now, state leaders hope the latest funding round will encourage innovators to bring forward technologies capable of reshaping how buildings consume and manage energy in the years ahead.