$150 Million for Heat Pumps: New York Expands Program for Homeowners and Small Buildings

New Green Small Buildings Program Will Accelerate Decarbonization and Lower Energy Costs for New Yorkers

Governor Kathy Hochul today announced up to $150 million in supplemental funding is now available to support the installation of energy-efficient heat pump systems in small residential buildings across New York State. The funding, administered through New York State Homes and Community Renewal’s (HCR) Green Small Buildings Program, will help expand access to clean heating and cooling technologies while reducing emissions and improving affordability for homeowners and renters.

“New York is continuing to lead the nation in building an affordable and more sustainable future,” Governor Hochul said. “By investing in modern, energy-efficient heat pump technology for homeowners and small buildings, we are lowering utility costs, reducing harmful emissions and ensuring more New Yorkers can live in safe, comfortable and climate-friendly homes.”

As part of the State’s $1 billion Sustainable Green Futures program, the Green Small Buildings Program supports the installation of high-performance heat pumps and related upgrades that enable building electrification across New York State. It is expected to expand access to clean energy upgrades for single family homes and small-scale residential buildings, including those serving low- and moderate-income households, while supporting local economies and advancing New York’s transition to an all-electric building sector.

The funding is now available as a supplemental resource to various existing small building development grant and loan programs administered by HCR as well as through the State of New York Mortgage Agency’s mortgage programs, allowing for streamlined delivery and faster implementation and ensuring broad geographic access throughout the State.

To ensure high-quality outcomes, all projects will be required to meet program guidelines developed in coordination with the New York State Energy Research and Development Authority’s Clean Heat program. These standards will ensure best practices in installation, performance and long-term energy savings.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $150 million investment strengthens our ability to bring high-performance, all-electric solutions to homeowners and low-to-moderate-income residents of qualifying small buildings that are often overlooked in large-scale programs. By leveraging our existing partners and programs, we can move quickly to deliver cleaner, healthier and more affordable homes while advancing New York’s nation-leading climate goals.”

State Senator Kevin Parker said, “Let me be clear, this didn’t happen by accident. This investment is the result of years of pushing, fighting and legislating to make sure New Yorkers aren’t left behind in the transition to a clean energy economy. As Chair of the Senate Energy and Telecommunications Committee, I’ve worked to ensure that these resources are not just talked about but delivered directly into our communities. This is about the real impact, right now. Families are struggling with rising utility costs, aging housing stock and systems that no longer serve them. This funding puts relief where it belongs in people’s homes, lowering bills, improving air quality and making those homes safer and more efficient today. But this is also about the future we are building. We are creating healthier neighborhoods, stronger local economies and a more resilient energy system that works for everyone, not just a select few. We are making sure that as New York moves forward, our communities move forward with it. This is what equity looks like. This is what leadership looks like. And this is what it means to deliver for the people of this state.”

Contact the Governor’s Press Office for more information.