Governor Hochul Announces $10 Million is Now Available to Advance Clean Heating and Cooling Solutions in New York

Governor Kathy Hochul today announced $10 million is now available to increase the adoption of advanced clean heating and cooling solutions in New York through the new statewide Clean Heat for All: Window Heat Pump Demonstration program. Starting today, manufacturers and vendors can now apply to qualify and demonstrate the performance of packaged window heat pumps (PWHPs) in multifamily buildings across the state, which aim to increase consumer confidence in this emerging heat pump technology. This new statewide program builds on the success and lessons learned from the New York City Housing Authority (NYCHA) Clean Heat for All Pilot and will make it more affordable for the industry to advance these cost-effective, plug-and-play retrofit solutions, which can improve comfort and temperature control for New York households without the need for extensive building infrastructure upgrades.

"Making clean energy more affordable is key to ensuring every New Yorker can benefit from our transition to a greener future," Governor Hochul said. "Clean Heat for All demonstrates how strong partnerships and proven solutions can accelerate that transition, helping families save energy costs, improving comfort in their homes and reducing harmful emissions across the state."

The statewide Window Heat Pump Demonstration program, administered by the New York State Energy Research and Development Authority (NYSERDA), offers incentives to qualified manufacturers and vendors to install PWHPs for demonstration and performance monitoring in select multifamily buildings with more than five units.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "The success of the Clean Heat for All program brought ground-breaking technology into the homes of New Yorkers to experience the benefits of clean, efficient heating and cooling. Through these demonstration projects, more residents and building owners will be able to experience greater comfort, control, and air quality from heat pump technology and feel confident in the switch to these low emission solutions."

The open enrollment opportunity consists of two concurrent phases. Starting today, under Phase One, manufacturers and vendors of PWHPs that meet a rigorous set of technical and performance criteria can now apply to qualify their clean heating and cooling products through the program. Once qualified under Phase One, they will be eligible to apply to Phase Two incentives to install and demonstrate their performance of their PWHPs in multifamily buildings. Selected projects in market rate demonstration sites will receive incentives covering 50 percent of costs up to $1,500 per PWHP. Incentives for low- and moderate-income demonstration sites will cover 75 percent of costs up to $2,250 per PWHP.

An application for Phase One can be submitted via email to [email protected]. Once NYSERDA reviews and accepts Phase One applications, applicants will become qualified participants and NYSERDA will grant access to a dedicated SharePoint site for Phase Two applications. The deadline to qualify PWHPs is January 30, 2026. The deadline to apply for incentives is June 30, 2027. More information about Phase One of the program can be found here and Phase Two can be found here.

From the Phase Two demonstrations, NYSERDA will collect PWHP performance data in order to provide metrics and actionable insights to building owners, operators, tenants, and utilities, both in New York State and other jurisdictions with significant multifamily housing stock and cold climates. This data will be used to assess the viability of PWHPs as a cost-effective, durable space heating electrification retrofit solution.

The Window Heat Pump Demonstration program joins NYSERDA's Clean Heat for All portfolio, alongside the Clean Heat for All: Packaged Terminal Heat Pump program, to bring efficient heating and cooling solutions to buildings across New York State. It also builds on the success and positive results of the NYCHA Clean Heat for All Pilot, a partnership between the New York City Housing Authority (NYCHA), New York Power Authority (NYPA), and NYSERDA to develop and test a cold-climate window heat pump that can better serve the heating and cooling needs of existing multifamily buildings. This new demonstration program aims to enable installation and monitoring of more PWHPs and provide additional performance data, which will complement data gleaned from the previous NYCHA Pilot.

New York Power Authority President and CEO Justin E. Driscoll said, "Through the Power Authority's strategic partnership with NYCHA and NYSERDA, the Clean Heat for All program led to the development of energy-efficient heat pumps that can be easily installed in multifamily buildings. The continued investment in this innovative technology will make it more affordable to implement, improving comfort and climate control for New York residents."

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Expanding access to clean, efficient heating and cooling is essential to improving the quality of life for residents across New York, including those who live in affordable multifamily developments. The $10 million Clean Heat for All Pilot program supports HCR's mission to preserve and improve our existing housing stock, and ensure safe, sustainable, affordable homes for all New Yorkers. By embracing and funding innovative technologies like packaged window heat pumps, we're helping to build a healthier, more resilient housing stock for the future."

New York City Housing Authority Chief Executive Officer Lisa Bova-Hiatt said, "NYCHA is proud to have been the catalyst and proving ground for this innovative program. The success of the initial Clean Heat for All pilot, which was met with very positive feedback from NYCHA residents, demonstrates the viability of these window heat pumps as a key solution for providing reliable heating and cooling while improving energy efficiency. We are thrilled to be involved in driving a market transformation that will serve to benefit not only NYCHA residents, but New Yorkers statewide."

Urban Green Council Chief Executive Officer John Mandyck said, "We applaud NYSERDA's new Window Heat Pump Demonstration program. It will expedite technologies that will fill important gaps in the industry and provide affordable electrification solutions for more New Yorkers."

For more 50 years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. Buildings are one of the most significant sources of greenhouse gas emissions in New York State. Through NYSERDA and utility programs, more than $5.6 billion has been invested to decarbonize buildings and support high-efficiency all-electric heating and cooling technologies. Room heat pumps, such as PWHPs, are an important tool in the transition to a clean energy economy and have the potential to enable rapid, affordable electrification of space heating in multifamily buildings.

This initiative is funded by the Regional Greenhouse Gas Initiative.

New York State's Climate Agenda
New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

Contact the Governor's Press Office