As New York City continues its push toward sustainability and carbon reduction, property owners are feeling the pressure—and opportunity—to upgrade their buildings. Between Local Law 97 emissions requirements, rising energy costs, and tenant demand for greener spaces, the financial benefits of improving energy efficiency have never been stronger. Fortunately, NYC property owners don’t have to shoulder the cost alone. A wide range of incentives, rebates, and financing programs can significantly reduce upfront expenses and speed up the return on investment.

Below is an overview of the most impactful energy efficiency incentives available today, along with tips on how property owners can take advantage of them.

NYC Accelerator: Free Guidance and Access to Incentives

The NYC Accelerator is one of the most valuable starting points for property owners. This free city-backed program helps building owners identify energy-saving opportunities, navigate compliance with Local Law 97, and connect with financing and incentive programs.

Property owners receive personalized guidance on upgrades such as lighting retrofits, HVAC improvements, heat pump installations, and building envelope enhancements. The program also helps match buildings with available rebates from utilities and state agencies—the kind of support that can save months of research.

NYSERDA Incentives for Energy Upgrades

The New York State Energy Research and Development Authority (NYSERDA) offers some of the most robust incentives for energy efficiency and electrification projects.

Key programs include:

  • Existing Buildings Program: Offers financial support for whole-building energy improvements, including insulation, air sealing, and efficient HVAC systems.
  • Clean Heat Program: Provides incentives for replacing fossil-fuel heating systems with energy-efficient electric heat pumps.
  • Multifamily Building Programs: Specialized incentives for affordable housing, rent-regulated units, and large multifamily properties.

NYSERDA incentives can cover a significant portion of upgrade costs—sometimes 30–50% depending on building type and project scope. For large capital projects, these savings can be transformative.

Utility Rebates from Con Edison

Con Edison provides a wide range of rebates designed to reduce energy consumption across commercial and multifamily buildings. These incentives cover both prescriptive upgrades (like LED lighting or high-efficiency boilers) and custom efficiency projects.

Some of the most popular Con Edison incentives include:

  • Lighting and Controls Rebates: For upgrading to LED fixtures, adding occupancy sensors, and installing daylight controls.
  • HVAC Incentives: Including efficient chillers, packaged rooftop units, variable frequency drives (VFDs), and demand-controlled ventilation.
  • Custom Energy Projects: Tailored rebates for projects that demonstrate measurable energy savings.

These rebates can help offset upfront costs and make phased upgrades more financially feasible.

PACE Financing: Long-Term, Low-Cost Funding

One of the biggest hurdles for property owners is funding upfront capital improvements. Property Assessed Clean Energy (PACE) financing helps solve that problem.

PACE allows building owners to borrow money for energy efficiency upgrades and repay the loan through a long-term property tax assessment—sometimes over 20–30 years. Since the repayment is tied to the property rather than the individual owner, the financing stays with the building even if ownership changes.

This structure makes PACE particularly attractive for large retrofit projects that generate long-term savings, such as HVAC overhauls, solar installations, and deep energy retrofits.

Federal Tax Credits and Deductions

Recent updates to federal energy policies have expanded the benefits available to commercial property owners, including:

  • Section 179D Tax Deduction: Allows deductions for energy-efficient improvements to commercial buildings, including HVAC, lighting, and building envelope upgrades.
  • Investment Tax Credit (ITC): Provides a federal tax credit for installing solar energy systems, with the potential for additional bonuses if certain labor or location criteria are met.

These incentives stack with state and local programs, further reducing net project costs.

Why These Incentives Matter More Than Ever

With Local Law 97 enforcement ramping up, many NYC buildings—especially older multifamily and commercial properties—risk significant fines if they exceed emissions thresholds. Energy efficiency upgrades not only lower operating costs and improve tenant comfort, but also help buildings avoid these penalties.

When combined, incentives can reduce project costs by 40–70%, making it far more economical to act sooner rather than later. And with tenants increasingly prioritizing sustainability, energy-efficient buildings often command higher rents, lower vacancy rates, and better long-term value.

Final Thoughts

Energy efficiency incentives offer a powerful way for NYC property owners to reduce upgrade costs, cut emissions, and future-proof their assets. Whether you’re preparing for Local Law 97 compliance or simply aiming to lower operating expenses, now is the time to take advantage of the available support.

By leveraging NYSERDA programs, Con Edison rebates, NYC Accelerator guidance, and federal tax incentives, property owners can transform costly upgrades into high-ROI investments—all while contributing to a cleaner, greener city.