Large buildings across New York can now tap into $10 million to advance clean heating and cooling technology, thanks to the state’s new Clean Heat for All: Packaged Terminal Heat Pump program.The new policy supports the production and demonstration of simple, innovative, and energy efficient cold-climate heat pumps to replace existing, less efficient air conditioners. This type of cold-climate heat pump is a plug-and-play solution that will lower emissions from buildings, improve comfort and indoor air quality, and reduce strain on the state’s electric grid.
“We are investing in growing the market for highly efficient cold-climate heat pumps to help more New Yorkers manage their energy use and experience improved indoor climate control in their homes,” said Governor Kathy Hochul. “Investing in solutions that can easily replace older, less efficient units will reduce costs for building upgrades and can provide energy savings to consumers while lowering building emissions.”
Administered by the New York State Energy Research and Development Authority (NYSERDA), the competitive program will provide funding to selected heating and cooling equipment manufacturers and building owners for product development and field demonstrations of cold-climate heat pumps in multifamily, senior living, and hospitality facilities. NYSERDA will work directly with building owners and heat pump manufacturers to evaluate proposals against products currently available in the market to ensure that the resulting cold-climate heat pumps are affordable solutions that can be easily installed in buildings without requiring costly electric infrastructure upgrades.
“Through this new program, NYSERDA is engaging with manufacturers to drive innovation that modernizes the way we heat and cool existing buildings,” said NYSERDA President and CEO Doreen M. Harris. “These efforts will help bring substantial energy efficiency improvements to large buildings — one of the largest contributors of emissions in New York State — and bring forward retrofit solutions that can be replicated more broadly across New York State and beyond.”
The new program is being implemented through two solicitations:
- First solicitation: HVAC manufacturers are eligible to receive up to $1.25 million for the development and demonstration of cold-climate heat pumps that meet or exceed the product specification details. Awardees will have up to 18 months to develop prototype PTHP units. The deadline to submit proposals is February 20, 2025, at 3 p.m.
- Second solicitation: Expected to open in early 2025, building owners and operators interested in participating in the program can apply to have their buildings qualified as potential demonstration sites. Manufacturers selected through the first solicitation will select demonstration sites from those qualified under the second solicitation and conduct 12-month long field demonstrations, in which the heating and cooling performance of the heat pumps will be closely monitored. NYSERDA will thoroughly evaluate the heat pumps’ performance to confirm that they successfully provide New York State with an economical clean heating and cooling solution.
“Now more than ever we need all available technologies to accelerate decarbonization,” said Urban Green Council Chief Executive Officer John Mandyke. “High efficiency, cold climate PTHPs will make it easier to reduce carbon emissions, especially in multi-family buildings. Urban Green salutes the development of this needed program by NYSERDA.”
“Electrifying existing buildings often feels like an uphill battle with few heat pumps built for architectural and operational realities,” commented L+M Development Partners Senior Director of Energy & Sustainability Laura Spencer Humphrey. “However, the Clean Heat for All: Packaged Terminal Heat Pump Program creates the rare opportunity for future users to shape how the new products will function based on operating experience. L+M applauds NYSERDA for aggregating market demand to advance the development of unitized heat pumps to meet the needs of buyers and users. We look forward to collaborating with NYSERDA and the participating manufacturers to inform the design of heat pumps that will work within existing low-income multifamily buildings, like those found in our portfolio.”
The program is funded through the Regional Greenhouse Gas Initiative. It builds on the success of the Clean Heat for All Challenge, a partnership between the New York Power Authority (NYPA), NYSERDA, and the New York City Housing Authority (NYCHA) to develop a cold-climate window heat pump that can better serve the heating and cooling needs of existing multifamily buildings.