The State of New York has approved a $5 billion (approximately EUR4.6bn) investment in electrification and energy efficiency programmes, according to a decision made public during a New York State Public Service Commission (PSC) meeting on May 15. These funds will be distributed between privately-owned utility companies and the New York State Energy Research and Development Authority (NYSERDA).
Funding allocated by income profile
The plan earmarks $1.57 billion for low- to moderate-income customers, aimed at supporting building weatherisation and the adoption of technologies such as heat pumps. The remaining $3.29 billion will go to other customer segments. According to the official order, the energy savings generated could power up to 400,000 homes.
PSC Chair Rory Christian stated that these initiatives are intended to reduce energy consumption and limit system-wide costs for ratepayers. The programmes are also expected to enhance the performance of both the electric and gas distribution networks.
Joint implementation by utilities and public agencies
The PSC allocated an additional $500 million to NYSERDA to support workforce development and community engagement related to the projects. On the utility side, subsidiaries of Consolidated Edison and National Grid are among the primary operators responsible for executing the programmes.
According to submitted forecasts, 67% of non-low-income budgets by electric utilities will be devoted to building electrification, while gas utilities will allocate 61% of comparable budgets to weatherisation projects.
Reallocation of funds and budget optimisation
The commission also approved the reallocation of $360 million from the NY-Sun solar incentive programme, which achieved its initial 10 GW target under budget. These funds will account for nearly 24% of NYSERDA’s energy efficiency and electrification portfolio.
In addition, programme costs were reduced by $340 million through the use of existing cash balances for 2025 and 2026. The PSC rejected a proposal from Consolidated Edison to launch a $115 million steam energy efficiency programme, stating that using ratepayer funds for this purpose was not justified.
Utilities are required to submit a preliminary electrification and energy efficiency plan for non-low-income customers within 60 days. The full programme budget will take effect on January 1, 2026.
