Energy Efficiency Incentive Programs

There are three tiers of incentive programs for residents based on income that can cover all or part of the cost of improvements. There is also low-interest financing available.

All residents may be eligible for a federal tax credit of up to $1,200 a year for insulation and other energy efficiency improvements. Learn more on our IRA page or on the Department of Energy’s website.

Additional incentives from the Inflation Reduction Act became available in 2024. The IRA provided new funding to the EmPower+ program, which is described below (see an IRA calculator from Rewiring America).

Tier I (“low income”)

  • EmPower+ (formerly EmPower New York) - If your family makes less than 60% of the State's median income ($76,680 for a family of four in 2024-2025), you may qualify for the EmPower+ program, which covers 100% of qualifying energy improvements like insulation, air sealing, replacement of inefficient lighting, fridges and freezers, and more. Previously, the maximum you could receive was $10,000, but thanks to new IRA funding, the maximum assistance amount is $24,000. Some exceptions apply. EmPower+ also serves tier II (see next section). You can apply online.

  • The Weatherization Assistance Program (WAP), a federal program, uses the same eligibility criteria as Empower NY (see above), and provides additional energy improvements at no cost. Find WAP application resources here.

Both of these programs are available for homeowners as well as renters, though landlord permission is required. Contact a Community Energy Advisor with questions about applying.

Tier II (“moderate income”)

  • EmPower+ (formerly Assisted Home Performance with ENERGY STAR®) - For renter and homeowner households below 80% of area median income (in most counties, $102,240 for a family of four in 2024-2025). This covers eligible improvements up to $19,000 (formerly a $5,000 matching grant, before IRA funding was released). You can apply online. (You can also download an EmPower+ application to print and mail [pdf].)

Tier III (“market rate”)

  • Comfort Home - This NYSERDA program provides rebates of $1,000 to $4,000 for air sealing and insulation packages, and additional rebates when installing heat pumps in combination as part of the package. It is currently available to all counties in the Southern Tier.

Municipal Electric Customers - Special rebates available

Customers of municipal electric utilities may be eligible for NYSERDA programs above like EmPower+. However, many municipal electric utilities have special rebates and programs to help with energy efficiency through the Independent Energy Efficiency Program (IEEP). See what your municipal electric utility offers, and chat with your local Community Energy Advisor for more detailed information.

Financing

In addition to the rebates mentioned above, there are a number of financing options to help pay for energy-related improvements. Contractors and our Community Energy Advisors can provide additional information on these options, but we provide an overview below.

On-Bill Recovery Loan

The On-Bill Recovery Loan is a NYSERDA loan in which your loan payments are built right into your utility bill. With this loan, your monthly payments may not exceed your estimated average monthly energy cost savings. So your energy savings essentially pay for your work. Loan amounts of $1,500-$25,000 with terms of 5, 10, or 15 years. Rates are 4.0% or 4.5% for low-income households, 4.99% for households with moderate income, and 6.99% or 7.49% for everyone else.

Smart Energy Loan

The Smart Energy Loan is another NYSERDA loan which is more traditional, with a monthly payment to NYSERDA's loan servicer. Amounts are from $1,500-$25,000 with terms of 5, 10, and 15 years. Rates range from 3.49% for lower income households who pay by auto payment to 7.49% for upper income households who pay by check.

Other Financing Options & Local Banks

Your contractor may be able to offer you other financing options. And you may also want to consider a loan through a local bank. Home equity loans can often be useful for energy-related improvements. Some banks even offer special loans for energy projects which you can take advantage of.