Governor Cuomo Announces Proposal for $15 Million Rebate Program for Renewable Heating and Cooling Technology
Renewable Heating and Cooling Policy Framework Will Further Development of Renewable Heating and Cooling Initiatives to Stimulate Market GrowthTechnology Supports New York State’s Clean Energy Goal of Reducing Greenhouse Gas Emissions 40 Percent by 2030
Governor Andrew M. Cuomo recently announced a $15 million proposal to accelerate
the use of renewable heating and cooling technologies in New York to stimulate
the clean energy economy. The new policy framework released by the New
York State Energy Research and Development Authority includes a proposed
two-year, $15-million program to provide rebates for the installation
of ground-source heat pumps. This plan will support the state’s
goal to reduce greenhouse gas emissions in New York 40 percent by 2030
from 1990 levels.
“New York has made great strides to combat climate change by supporting
the use of new technologies and growing our clean energy economy,”
Governor Cuomo said. “We will continue to make green investments that will encourage the
use of clean, affordable energy to reduce our carbon footprint and support
sustainable communities throughout the state.”
Currently, fossil-fuel based thermal energy — primarily natural
gas, propane and oil — is the main energy source for space heating,
space cooling and domestic hot water in the residential and commercial
sectors. It is responsible for approximately 32 percent of New York’s
energy-related greenhouse gas emissions. Reducing emissions is integral
to the Governor’s Reforming the Energy Vision strategy for a cleaner,
more resilient and affordable energy system for all New Yorkers.
Renewable heating and cooling technologies not only provide environmental
benefits, they can provide energy bill savings, increased comfort levels
and health benefits compared to conventional heating and cooling technologies.
The NYSERDA framework, the “Renewable Heating and Cooling Policy
Framework: Options to Advance Industry Growth and Markets in New York,”
sets out policy options and market-based solutions for the next few years,
and identifies approaches for longer term action. Interested parties are
invited to comment on the framework. ​More information on the framework
policy is available
here.
The proposed $15 million rebate program would provide about $6,000 for
a typical residential consumer for the installation of a ground-source
heat pump. This technology has tremendous potential to provide New Yorkers
with a heating and cooling system that is energy efficient and reliable.
However, it is not yet cost-competitive with conventional technologies
so providing rebates will help stimulate market growth.
In addition to the rebate, the framework identifies a range of options
for the next few years to lower costs, reduce barriers and grow the market,
including:
- Community-based outreach, education and bulk procurements.
- Integrating renewable heating and cooling in new housing developments and campuses, which can be more economically efficient and lower cost due to the scale of the projects.
- Developing a unified and streamlined permitting process.
- Reducing project development risks by providing support for feasibility and engineering studies.
- Introducing renewable heating and cooling technology into existing trade and distribution channels.
- Advancing new business models and financing innovations that can mitigate high upfront costs by spreading them over time.
The framework also explores methods to implement renewable heating and
cooling mandates for public buildings, new construction, and renovation.
“The expanded use of renewable heating and cooling technologies
is critical to helping New York reduce greenhouse gas emissions,”
said Richard Kauffman, Chairman, Energy and Finance, New York State.” The policy framework outlines several opportunities that we can explore
for the best path forward in our efforts to expand the reach of clean
energy throughout our state and curb climate-changing emissions.”
NYSERDA, which developed the framework, will work with stakeholders and
launch renewable heating and cooling programs in 2017 upon approval by
the Department of Public Service, as part of the Clean Energy Fund. Once
approved, NYSERDA expects to offer the rebate program in the Spring. NYSERDA,
DPS, and the New York Power Authority will be collaborating to advance
the framework.
“Accelerating clean heating and cooling technologies like ground-source
heat pumps is another significant step under Governor Cuomo’s direction
to make New York the cleanest and most energy efficient state in the country," said
John B. Rhodes, President and CEO, NYSERDA. "The recommendations outlined in the Framework strongly support
New York’s nation-leading clean energy strategy and we look forward
to working with the industry to bring these ideas to fruition.”
“This proposal will help to streamline the implementation of renewable
energy technology all across New York State,” said
Gil C. Quiniones, NYPA president and CEO. “By undertaking screenings and feasibility assessments for geothermal
heat pump projects, we will accelerate their installation and expedite
achieving a clean energy economy for all New Yorkers.”
Assemblywoman Amy Paulin, Chair, Assembly Committee on Energy said, “NYSERDA’s proposal supplies a roadmap for how we can increase
the use of clean, geothermal energy in NY, which is currently under-utilized.
This will go a long way towards helping to meet the State’s ambitious
renewable energy goals.”
John Franceschina, President, NY-GEO said, “New York is now charging ahead with a rapidly evolving program
to address climate change that combines renewable heating, cooling, power
generation and electric vehicles. NY-GEO thanks Governor Cuomo, who has
come to the rescue of 1,000 family-supporting geothermal jobs, while paving
the way for New York to meet the goal of reducing greenhouse gas emissions
by 40 percent by 2030.”
Roger Downs, Conservation Director, Sierra Club Atlantic Chapter
said, “The Sierra Club applauds Governor Cuomo’s leadership in energy
efficient technologies such as geothermal. Geothermal heating and cooling
represents one of New York's best and most cost-effective strategies
to achieving our net zero energy goals and deserves the same financial
encouragement as other desirable energy sources like wind and solar.”
Several barriers currently stand in the way of widespread market adoption
of renewable heating and cooling technologies. These include higher upfront
costs than conventional technologies, cost-effectiveness challenges, inadequate
access to low-cost investment capital, limited customer awareness and
confidence in the technologies, and a range of supply chain barriers to
growth. In addition, heating and cooling equipment is typically only replaced
toward the end of its useful life — about 15-20 years — so
the opportunity to switch to renewable energy is limited.
NYSERDA will accept written comments on the policy framework through close
of business on March 10, 2017. It will also conduct a webinar on March
2, at 10:00 a.m. Parties interested in submitting comments on the framework
or participating in the webinar, should contact NYSERDA at
renewableheatingandcooling@nyserda.ny.gov
About Reforming the Energy Vision
Reforming the Energy Vision is Governor Andrew M. Cuomo's strategy
to lead on climate change and grow New York's economy. REV is building
a cleaner, more resilient and affordable energy system for all New Yorkers
by stimulating investment in clean technologies like solar, wind, and
energy efficiency and generating 50 percent of the state's electricity
needs from renewable energy by 2030. Already, REV has driven 730 percent
growth in the statewide solar market, enabled over 105,000 low-income
households to permanently cut their energy bills with energy efficiency,
and created thousands of jobs in manufacturing, engineering, and other
clean tech sectors. REV is ensuring New York State reduces statewide greenhouse
gas emissions 40 percent by 2030 and achieves the internationally-recognized
target of reducing emissions 80 percent by 2050. To learn more about REV,
including the Governor's $5 billion investment in clean energy technology
and innovation, please visit
www.ny.gov/REV4NY and follow us at
@Rev4NY.