Governor Hochul Announces $15 Million is Now Available to Advance Innovative Building Solutions in New York State

Governor Kathy Hochul today announced $15 million is now available to advance innovative building solutions in New York State through the Innovation for Affordable Building Electrification program. The initiative supports the adoption of technologies that can be scaled in existing buildings to improve energy efficiency, electrification or load management to enhance building performance and reduce costs.

"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 Innovation for Affordable Building Electrification program administered by the New York State Energy Research and Development Authority (NYSERDA), provides funding to develop and demonstrate a new or improved product or solution to better control energy use, increase load flexibility, lower emissions, and improve indoor air quality in existing residential and commercial buildings. Eligible applicants include but are not limited to researchers, educational institutions, manufacturers, labs, building owners and managers, or trade associations, among others. Solutions that benefit low- to moderate-income or disadvantaged communities, as identified by New York's Climate Justice Working Group, will be prioritized.

NYSERDA President and CEO Doreen M. Harris said, "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. 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."

Proposals must address one of three energy topic areas that improve building performance:

• Efficiency - permanent load reduction solutions including, but not limited to, building envelope components or materials, ventilation and air sealing.
• Electrification - clean and affordable heating and cooling solutions including, but not limited to, heat pump systems for space conditioning and domestic hot water.
• Load Management - grid-interactive building solutions including, but not limited to, electric load and energy asset management, electrification-enabling equipment and integration of storage.

Proposals are due on July 23, 2026, by 3:00 p.m. ET. For more information on this funding opportunity please visit NYSERDA's website.

Additionally, all applicants also have the option of submitting a Letter of Intent to NYSERDA to receive feedback on the eligibility, not merits, of their proposal prior to submitting a final version. Proposers interested in submitting the optional Letter of Intent must do so any time prior to July 2, 2026, by 3:00 p.m. ET.

NYSERDA will host a webinar on June 3, 2026, at 1:30 p.m. ET to provide more details on the solicitation, project requirements, and the application process.

Public Service Commission Chair Rory Christian said, "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."

Building Energy Exchange CEO Richard Yancey said, "New York State's building stock represents one of our greatest opportunities - and obligations - for climate action. 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."

State Senator Kevin Parker said, "New York's clean energy future depends on our ability to invest in innovation that makes sustainability affordable, accessible, and practical for every community. 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 said, "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."

Today's announcement builds on New York State's investments in energy technologies, new products, and solutions to address energy costs, demand and a reliable electric grid. NYSERDA invests over $96 million per year through its Innovation and Research programs to attract world class energy innovators, reduce risk for private investors and remove barriers to clean energy adoption in New York State. Every $1 of NYSERDA funding leverages $15 in additional investment from private and public sources. NYSERDA has partnered with over 900 companies that have helped make more than 300 products commercially available for consumers, businesses and utilities.

Funding for this program is provided through the New York State Public Service Commission's 2025 Innovation and Research Order, which funds statewide clean energy innovation and research programs from 2026 through 2030.

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. The State is also working to disburse the historic $1 billion Sustainable Future Program, which will deliver targeted funding to lower emissions, reduce household energy costs and spur green job growth.