Non-Residential Geothermal and Air Source Heat Pump Pilot Program

Non-Residential Geothermal and Air Source Heat Pump Pilot Program

NYSEG and RG&E will provide one-time grant assistance per project to install geothermal or air source heat pump systems in lieu of natural gas heating in customer-owned facilities to be owned by a customer who satisfies eligibility requirements. This economic development grant would provide funding to incentivize customers to utilize heat pump technology to meet their heating and/or cooling needs.

Both geothermal and air source heat pump systems that meet or exceed applicable energy efficiency baseline and technical requirements could be funded through this program.

The Companies will work with NYSERDA, the New York Power Authority (NYPA) and other organizations with subject matter expertise to specifically determine applicable energy efficiency baseline and technical requirements.

Supplemental assistance provided under this program will be over-and-above incentives, rebates and other assistance provided to customers by the Companies, NYSERDA or NYPA.

Customers participating in the Geothermal and Air Source Heat Pump Pilot Program must also participate fully in all available programs offered by NYSERDA, NYPA, and the companies and satisfy program eligibility requirements.

The applicant’s simple payback on the heat pump system versus a reasonably defined baseline heating and cooling system including natural gas for heating, must be not less than one year, net of energy efficiency incentives/rebates for the heat pump system available from NYSERDA or NYPA, and the companies.

  • New or existing non-residential (commercial, industrial or municipal/public authority) customers will be eligible. 
  • Non-residential NYSEG or RGE customers with a minimum peak electric demand of 350 kW and certain projects that are endorsed by one of the ESD’s Regional Economic Development Councils and/or the Governor’s office. 
  • Project must hold the Companies harmless with regard to contaminant liability. 
  • Site/facility must be located within the Companies’ service areas and within an area where there are either natural gas system constraints or for business expansion/attraction projects, where incremental load requirements have determined a constraint in natural gas availability to meet their specific requirements. 
  • Applicant must be the owner or leaseholder of facility and current on their account (existing customers). 
  • Project must demonstrate the ability to retain and/or attract new employment. 
  • Applicant must demonstrate efforts to obtain state and/or local economic development incentives

If you have questions about our program, please contact our implementation contractor ICF at 844.212.7823 or send an email to

**Colleges/universities and health care facilities must demonstrate that project for economic development assistance goes beyond typical educational facilities/dormitories/traditional health care occupancy and promotes research and development and/or state-of-the-art technologies/best practices, centers of excellence, that foster regional economic development benefits.

Please contact a NYSEG/RG&E economic development representative to check on the availability of funding assistance under the economic development programs. Click here to email us.

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