New York State has one of the largest and longest running state-run energy efficiency programs in North America. The New York State Energy Research and Development Authority (NYSERDA) was originally created in 1975 and focused primarily on energy research and development (R&D) in New York before taking over the state-wide energy efficiency programs. It represents a model of government administered energy efficiency. NYSERDA is a public benefit corporation funded primarily through fees paid by ratepayer through their energy bills. NYSERDA’s energy efficiency program covers both electricity and natural gas.
NYSERDA administers its System Benefit Charge (SBC) funded programs under the "New York Energy $mart" brand, and works with a network of contractors to implement these programs. Financial assistance in the form of rebates and performance incentives are offered to large commercial and industrial customers as an encouragement to make investments in efficient equipment. NYSERDA also performs work in several areas other than energy efficiency resource acquisition that are not discussed below. These efforts include energy related research and development, technology and market development, and renewable energy implementation. These other work areas are funded primarily through customer charges separate from the energy efficiency system benefits charge.
Target Group - Size:
Target Group - Industry Focus:
GHG emission source covered:
Acquire cost effective energy efficiency resources for the State of New York
Program Funding Source:
"Systems Benefits Charge" on consumer electric and natural gas bills, limited funding from other sources.
Total Program Funding:
$275.7 million (2012)
Program Offerings for Industry:
NYSERDA offers several technical and financial assistance programs for its commercial and industrial customers. Financial assistance is provided in the form of rebates. The amount of the rebate is determined by multiplying a fixed price per unit of energy ($/kWh for electricity and $/MMBtu for natural gas) by a project’s annual energy savings. The price per unit varies depending upon type and location of project.
Process and Energy Efficiency
- Electric: $0.12/kWh upstate; $0.16/kWh downstate (*2)
- Natural Gas: $15/MMBtu up state; $20/MMBtu downstate
Operation & Maintenance (O&M)
- Electric: $0.05/kWh
- Natural Gas: $6/MMBtu
- All projects: 50% of project cost
- Electric: $5 million/facility/year
- Natural Gas: $1 million/facility/year
Examples of projects eligible for consideration include but are not limited to:
- Energy efficient lighting
- High efficiency motors
- Variable speed drives
- High efficiency heating, ventilating and air conditioning (HVAC)
- Combined heat and power (CHP)
- Scrap reduction
- Throughput increases
- LEAN & Six Sigma projects
NYSERDA is very active in workforce development, energy efficiency education, and helping customers to identify energy savings opportunities. NYSERDA does not have an active program assisting manufacturers to implement Energy Management Systems (EnMS) at this time.
The PSC has not approved any options for large industrial customers to self-direct any of their energy efficiency funds.
Implementing Entity Type:
M&V requirements on industry:
Impact Evaluation activities involve visiting sites of large energy efficiency projects and taking pre- and post-project measurements to determine the actual savings achieved compared to what was calculated. This "realization rate” is then applied to the gross estimated savings to get a more accurate account of energy savings achieved.
A Process Evaluation seeks to address industry-specific concerns relating to energy efficiency verification. This includes assessing the effectiveness of outreach, program operations, identifying reasons for industry participation and measure implementation. It also makes recommendations for program improvement.
Market Characterization assessments are completed every other year to determine emerging market factors and help establish a baseline of technology and practice uptake.
Evaluation of Program:
Program flow chart
Program Flow Chart
Impacts and Results
Analytic base for target (or target setting mechanism):
PSC set a goal to reduce electricity consumption by 15% by 2015 and natural gas consumption by 15% by 2020 based on an energy efficiency potential study performed in 2008.
Savings (recent year):
Savings (program total):
Average unit cost of energy saved:
Non-energy benefits (co-benefits):
Other useful information
(*1) While the PSC makes the final decisions on rules affecting NYSERDA and the utilities, it is supported by staff from the Department of Public Service (DPS), which is part of the executive branch of the government.
(*2) The New York City metropolitan area is known as “downstate” and the balance of the state is known as “upstate”.
(*3) Primarily natural gas, but includes petroleum fuel oil as well