Efficiency & Building Electrification (EE/BE) Order Changes
Programs: EmPower+
To: Participating Contractors; Clean Energy Hubs
Summary: Efficiency & Building Electrification (EE/BE) Order Changes
Questions: If there are any questions, please contact Contractor Support
The Low-to-Moderate Income (LMI) Energy Efficiency / Beneficial Electrification Order was issued by the Public Service Commission in May 2025. This order covers funding for NYSERDA’s LMI single and multifamily programs for 2026 through 2030.
Both the Order, and additional program enhancements directed by NYSERDA, call for significant updates to the EmPower+ program to improve delivery, strengthen customer outcomes, and better align with statewide electrification and affordability goals.
NYSERDA will implement these changes through a phased rollout across 2026.
The first tranche of updates is scheduled to launch on March 18, 2026, and will include the following:
Contractor Application Submissions
Starting on March 18, 2026, participating contractors will be able to submit applications, through the MyEnergy portal, on behalf of customers who can provide categorical income verification. The acceptable categorical income verification types include:
- HEAP (Home Energy Assistance Program)
- SNAP (Supplemental Nutrition Assistance Program/Food Stamps)/SNAP NYC
- SSI (Supplemental Security Income)- (this is different from Social Security Retirement or Disability benefits which are used as income sources for Standard Eligibility)
- TANF (Temporary Assistance for Needy Families)
- Weatherization Assistance Program
- Public Assistance
Training in MyEnergy for contractors will take place:
- Session 1 – February 25th – 12:00 p.m. – 1:00 p.m.
- Session 2 – March 11th – 12:00 p.m. – 1:00 p.m.
- Session 3 – March 18th – 12:00 p.m. – 1:00 p.m.
- Session 4 – March 25th – 12:00 p.m. – 1:00 p.m.
- Application Prioritization
The EE/BE Order directs the EmPower+ program to prioritize customer segments with the greatest energy burden and need. To ensure program resources are deployed in a way that provides most meaningful impact, applications from these priority customer types will receive preference during periods of elevated application volume. This approach supports equitable access to benefits while maintaining a steady and sustainable project pipeline.
- Referrals from utilities of customers participating in Energy Assistance Programs
- Customers in geographic Disadvantaged Communities (DACs)
- Customers with high energy cost burden
- Customers in areas that have been historically underserved by the program (currently identified as the Capital District, Hudson Valley, New York City, North Country with the list to be updated pending on-going market analysis)
- Income Eligibility Changes for Low-Income Households
The EE/BE Order requires EmPower+ to use 60% Area Median Income or State Median Income, whichever is greater, for determining low-income eligibility. This differs from the current process, which relies solely on State Median Income figures. The EmPower+ program will update the income qualification tables with these new numbers and TRC will use the updated tables for program qualification beginning March 18, 2026.
If a customer who has previously applied in the last 12 months and was classified as moderate-income is now eligible as low-income, their contractor can request that TRC re-review the application. If they qualify as low-income under the new rules, a new project will need to be created in NYHEP when the application is revised.
As part of the income table updates, EmPower+ has also incorporated the updated HEAP numbers for 2025-2026.
- Project Incentive Cap Increases for Upstate and Downstate
EmPower+ incentive caps will be increased for both low and moderate-income households and will be delineated by upstate and downstate regions. In addition, EmPower+ will use the customer’s address rather than the contractor’s address to determine if a project is eligible for upstate or downstate pricing and incentives.
Downstate addresses will include households in the counties south of and including Dutchess and Ulster Counties. Below are the updated low and moderate-income project level incentive caps by household type and location:
- Moderate-Income Cost Share
The EmPower+ program will reinstate the 50% project level incentive cap for moderate-income households. EmPower+ will provide an incentive covering up to 50% of the cost of eligible measures, up to the applicable project caps.
Beginning March 18, 2026, for moderate -income eligible projects submitted to the program that do not yet have a submitted work scope, the customer will be required to cover the remaining balance of the project, either out of pocket, using other available grants, or through NYSERDA’s Residential Financing programs.
Moderate-income incentive caps will change to $6,000 for upstate customers and $7,000 for downstate customers. In addition, Inflation Reduction Act (IRA) Home Electrification and Appliance Rebates (HEAR) funds can be layered on top of this amount of funding.
- Example: The only eligible measure in the project is air sealing with a cost of $4,000.
- Total cost: $4,000
- Base EmPower+ incentive is $2,000 (50% of $4,000)
- HEAR incentive is $1,600
- Total possible incentive is $3,600.
- LED Light Bulb Eligibility
The EE/BE Order classified light bulbs as a non-strategic measure that may continue in limited applications through 2027; however, they will be phased out afterwards. Beginning March 18, 2026, eligibility for direct install LED lighting will be limited to the following applications:
- Replacement of existing in-service incandescent lightbulbs with LEDs, AND
- As part of a comprehensive project where lighting is under 5% of the total project cost.
- Heat Pump Water Heater Incentive Changes
Effective February 6, 2026, EmPower+ will be using funds, secured through Governor Hochul’s Sustainable Futures Program, to incentivize Heat Pump Water Heaters (HPWH).
- Maximum incentive for HPWHs will be:
- 100% of the project up to $5,000 for Low-Income (Tier 1)
- 50% of the project up to $2,500 for Moderate-Income (Tier 3)
- This incentive will include all electrical upgrades associated with the HPWH including:
- A new breaker, running a new electrical line, and other associated costs.
- Contractors will need to include these costs in the measure.
- Contractors should not use the HEAR electrical upgrade measure for HPWH associated costs.
- The HEAR electrical service panel box upgrade measure will still be eligible when installing a HPWH.
- Insulation Requirements for Heat Pump Projects
The below table represents the updated minimum insulation requirements a residence must meet prior to the installation of a heat pump through EmPower+. These updated envelope requirements are for work scopes submitted to the program beginning March 18, 2026.
- Updated Project Photo Requirements
To shorten project review times and standardize document submissions, EmPower+ will be launching new photo templates for:
- Assessment/Workscope Submission
- Final Project Submission
Starting March 18, 2026, contractors will be expected to use the new submission templates or use a product that can arrange photographs in the same order as the templates.
A photo reference document will also be available for each measure. This document will enable users to readily identify photo needs when proposing measures.
We do want to remind contractors that IRA funding requires clear pictures of the make and models tags of the installed units. We will be reviewing these photos more closely to ensure that the information on them is legible.
NYSERDA is continuing to pursue a contract with CompanyCam to provide licenses for CompanyCam for all participating contractors.
- Smart Power Strips
Based on findings from a recent evaluation study, the program will be ending smart power strips as a measure on March 18, 2026.
- If they have been added to a work scope that has been submitted, it can move forward as a measure, but they will no longer be available to be added to new work scopes.
- Updated EmPower+ Pricing
As part of the EmPower+ yearly cycle, the program will update utility rates used in project level cost effectiveness calculations and EmPower+ measure pricing schedules during the Q1 changes to the NYHEP system. These rates will be effective as part of the March 18, 2026 updates.
The above program changes were covered in the February 6, 2026, Contractor Check-In webinar which can be found on the contractor support site. Between now and the launch of these program changes, program staff will be making updates to the program manual, income charts, and NYSERDA webpages. If there are any questions on these upcoming program changes, please reach out to contractor support at support.residential@nyserda.ny.gov or (800)- 284-9069.