New York is making up to $150 million available to expand the use of heat pumps in homes and small residential buildings, a move aimed at lowering energy costs and accelerating the state’s shift away from fossil fuels.
Gov. Kathy Hochul announced the funding Monday as part of an effort to make energy-efficient heating and cooling systems more accessible, particularly for low- and moderate-income households.
The funding will be distributed through the state’s Green Small Buildings Program, administered by Homes and Community Renewal, and will support the installation of high-performance heat pumps and related upgrades that enable building electrification.
State officials say the program is designed to address a gap in clean energy initiatives by targeting smaller residential properties that are often excluded from large-scale infrastructure programs. The funding will also be layered into existing grant, loan and mortgage programs to speed up implementation and broaden access statewide.
Hochul said the investment is intended to reduce utility bills, cut emissions and improve overall housing quality by replacing outdated heating systems with modern, energy-efficient alternatives.
Projects funded through the program will be required to meet standards developed in coordination with the New York State Energy Research and Development Authority, ensuring consistent performance and long-term energy savings.
State officials framed the initiative as part of a broader push to electrify buildings and reduce reliance on fossil fuels, while also supporting local economies through increased demand for installation and construction work.
The announcement builds on the state’s larger housing and climate agenda, including efforts to increase affordable housing supply and modernize existing housing stock through energy upgrades.
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