Saving Families Money: $10 Million Is Available To Advance Zero-Emission Homes in New York State

Program Incentivizes Design, Construction and Marketing of New Clean and Resilient Single-Family Homes and Townhomes

October 23, 2024

Governor Kathy Hochul today announced $10 million is now available to advance new zero-emission homes in New York State. The Building Better Homes – Zero Emission Homes for Healthier Communities program incentivizes the design, construction and marketing of new clean and resilient single-family homes and townhomes and provides training and technical support to builders and developers. Advancing zero-emission new construction across the state will reduce emissions, improve indoor air quality, and create healthy, comfortable and resilient living environments for all New Yorkers.

“New homes built to the latest clean energy and efficiency standards will ensure greener, healthier housing is available to all New Yorkers while helping pave the way toward a more sustainable future,” Governor Hochul said. “This investment is another part of the State’s comprehensive strategy to transform the new construction market, curb emissions, and ensure fewer homes and buildings rely on fossil fuels.”

The Building Better Homes – Zero Emission Homes for Healthier Communities Program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funding on a first come, first served basis to builders and developers that commit to designing, constructing and growing market awareness and demand for new zero emission single-family homes and townhomes. Projects must meet performance requirements and third-party certification criteria that address clean energy, above code energy efficiency, and resiliency, including heating, ventilation, and air conditioning (HVAC) systems that remain operable during power outages or include backup power sources that can be used in the event of a power outage.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Bringing builders and developers resources to advance zero-emission new construction is at the heart of Governor Hochul’s commitment to build homes that are healthy, comfortable, and maximize consumer control over energy use. This program continues NYSERDA’s long history of working with the market to bring the latest in energy and efficiency measures to more New Yorkers.”

The base incentive per home is up to $7,000 and up to $4,000 for townhomes. Homes located in disadvantaged communities , as defined by the Climate Justice Working Group, will be eligible for the higher incentive amount with an additional $1,000 offered per project in these areas. Funding is also available for Passive House training of staff and contractors to help develop the expertise needed to effectively incorporate these standards into new homes.

Applications for a single home, townhome or multiple homes and townhomes within a housing subdivision will be accepted through December 31, 2025, by 3 p.m. ET or until funds have been exhausted. For more information on this opportunity, including eligibility requirements, please visit NYSERDA's website .

This program is part of the Building Better Homes Initiative, which is designed to advance market awareness of zero-emission building practices and provide resources that can be distributed to consumers about the benefits of them. Benefits to consumers include improved indoor air quality, reducing the potential for asthma and allergies, and more comfortable living, all resulting from modern, high-performance appliances, such as induction cooktops, convection ovens, and clothes washers with integrated heat pump dryers.

Zero-emission homes are also more likely to operate seamlessly during power outages due to incorporating passive resiliency and survivability measures. With more than 10,000 new homes being built per year in New York State, working with the home building market to reduce emissions is critical to making progress toward the State's climate and energy goals, including the Governor's goal to achieve two million climate-friendly homes by 2030.

Phius Co-Executive Director Katrin Klingenberg said, "This substantial investment is a crucial step toward transforming New York’s housing by advancing zero-emission homes. It’s not just about reducing carbon—it's about creating healthier, more comfortable, more resilient spaces for residents. Phius is proud to support this effort in line with our mission to decarbonize the built environment and build a sustainable future for all."

Buildings are one of the most significant sources of greenhouse gas emissions in New York State, and through NYSERDA and utility programs, more than $6.8 billion is being invested to decarbonize buildings. By improving energy efficiency in buildings and advancing statewide installations of onsite storage, renewables, and electric vehicle charging equipment, the State will reduce its carbon emissions and advance toward the ambitious target of reducing on-site energy consumption by 185 TBtu by 2025, the equivalent of powering 1.8 million homes.

This program is funded through the State’s Clean Energy Fund (CEF).

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent of the benefits of clean energy investments, are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.