Governor Hochul Announces $17.5 Million Investment in Advanced Clean Heating and Cooling Solutions

Governor Kathy Hochul today announced a $17.5 million investment in advanced heating and cooling solutions in New York State. Through the State's Clean Heat for All: Room Heat Pump (Room Heat Pump) program. $10 million is now available for field demonstrations of cold-climate packaged window heat pumps in multifamily buildings. Additionally, $7.5 million has been awarded to five manufacturers to accelerate the development of through-wall heat pumps. Today's announcement facilitates innovation in the development of plug-and-play heating and cooling solutions that will save New Yorkers money by increasing energy efficiency and reducing energy consumption in buildings.

"New York State is at the forefront of innovation, adopting new technologies that support our equitable transition to a clean energy economy," Governor Hochul said. "Investing in the development and adoption of next generation heat pump technology in residential buildings will not only improve the comfortability of living spaces, but also will provide much-needed energy and cost savings at a time when affordability is top of mind for New Yorkers."

The Room Heat Pump program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funding for the development, installation and monitoring of cutting-edge cold-climate, high performance room heat pumps, such as through-wall heat pumps and window heat pumps, to improve comfort and temperature control for New York households without the need for extensive building infrastructure upgrades.

NYSERDA President and CEO Doreen M. Harris said, "The Room Heat Pump program benefits New Yorkers where it matters most - in their apartment or residential building. NYSERDA is proud to support the development of industry leading solutions that work to lower energy demand, increase efficiency and drive these technologies to scale, reducing the manufacturing costs so more New Yorkers can benefit from clean energy technology."

$10 Million for Window Heat Pump Demonstrations

NYSERDA is making $10 million available to three qualified heating, ventilation and air conditioning (HVAC) manufacturers for field demonstrations of cold-climate packaged window heat pumps (PWHPs), an emerging electrification retrofit solution particularly well-suited for multifamily building retrofits, in New York State. The manufacturers and vendors were selected as part of an open enrollment opportunity launched in 2025 after meeting a rigorous set of technical and performance criteria to qualify their clean heating and cooling products through the program.

Owners and managers of multifamily buildings interested in field testing qualified window heat pumps may participate here through June 30, 2027 at 3 p.m.

$7.5 Million Awarded to Heat Pump Manufacturers for Through-Wall Heat Pumps

Additionally, NYSERDA has awarded $7.5 million to five qualified HVAC manufacturers for the development of cold-climate, through-wall heat pump products. The manufacturers each received $1.5 million to develop and demonstrate an advanced through-wall heat pump that meets rigorous qualification standards to address key barriers to adoption. The products will undergo third-party lab testing and will be available for field demonstrations in selected multifamily buildings as soon as this winter.

Owners of multifamily buildings in upstate New York (Climate Zone 5 & 6) are eligible to host NYSERDA-funded demonstrations of through-wall heat pumps from the five qualified HVAC manufacturers in their properties. Those interested in replacing their existing air conditioners with through-wall heat pumps may submit an application to qualify their building here. Applications are open through October 29, 2026, at 3 p.m. NYSERDA will match the qualified buildings with one of the five HVAC manufacturers for a field demonstration of their product at a rate of up to $20,000 per apartment.

NYSERDA will host an informational webinar on the Room Heat Pump program awarded products and program details in the coming weeks. Those interested in attending the webinar should email [email protected]to request to be notified when the webinar details are released.

Demonstrations funded through the Room Heat Pump Program will support the collection and analysis of comprehensive heating and cooling performance data to better inform New York customers interested in exploring this technology and its potential energy savings.

Room heat pump technology can increase the efficiency of New York State's multifamily sector, offering real energy saving opportunities for New Yorkers. Across the State's roughly three million residential dwelling units, nearly half were built after 1940 and may possess structural openings suitable for through-wall heat pump installation. For multifamily dwelling units built before 1940, many rely on window air conditioners for cooling, and as a result, are potential candidates for window heat pump retrofits. Beyond the existing building retrofit market, nearly 40 percent of all multifamily new construction projects in New York State are built with through-wall heat pump openings.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "This $17.5 million investment builds on Governor Hochul's leadership on creating sustainable and energy-efficient homes. The Room Heat Pump program will help New York green its residential buildings sector through innovative heating and cooling systems that provide easier to install solutions for the housing market. We thank our partners at NYSERDA and look forward to partnering on this initiative along with our housing development partners."

Urban Green Council Chief Executive Officer Chris Halfnight said, "Today's $17.5M investment will accelerate exactly the kind of practical, highly efficient and affordable drop-in solutions we need to improve heating and cooling in New York apartments. We applaud NYSERDA's approach combining new product development with field demonstrations, leveraging the largest building decarbonization market in the world to show that we can save energy, save money and cut carbon with New York's clean energy transition."

New York City Housing Authority Chief Executive Officer Lisa Bova-Hiatt said, "Through our partnership with NYSERDA and NYPA on the Clean Heat for All program, NYCHA has seen firsthand the benefits of heat pump technology. Heat pumps run on electricity to heat and cool individual apartments and achieve major energy and greenhouse gas emissions reductions while providing direct climate control to residents. The State's significant investment in clean heating and cooling solutions will continue to build upon progress made through Clean Heat for All, reducing reliance on inefficient fossil fuel heating systems and ultimately saving New Yorkers money in the process."

The Room Heat Pump program advances Governor Hochul's commitment to efficiently decarbonize buildings, which 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.

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