Window Heat Pump Demonstration Program - Phase I

The Window Heat Pump Demonstration Program is a NYSERDA initiative designed to accelerate market adoption of cold-climate plug-in window heat pumps (PWHPs), a novel electrification retrofit solution particularly well-suited for multifamily building retrofits. Building on promising results from the NYCHA Clean Heat for All Pilot, this Program will provide up to $10 million in incentives for installation and performance monitoring of qualified PWHPs in multifamily buildings throughout New York State. The Program is structured in two concurrent phases: Phase I – Participant Qualification, where manufacturers, suppliers, or distributors may apply to become qualified Participants by demonstrating that their PWHP products meet the Program's technical specifications, including cold-climate performance, energy efficiency, and plug-and-play installation requirements; and Phase II – Demonstration Projects, where only Qualified Participants approved under Phase I may apply for incentives for installing their approved PWHPs in eligible multifamily buildings (Demonstration Sites). Incentives are offered per unit based on site type: up to $2,250/PWHP (75% of cost) for low- to moderate-income (LMI) buildings and up to $1,500/PWHP (50% of cost) for market-rate buildings. Additional limits include: $2 million cap per PWHP brand, $500,000 cap per Demonstration Site, a minimum of ten (10) PWHPs must be installed at proposed Demonstration Sites, and at least 20% of each participant's incentive budget must support installations in New York State climate zones 5 and 6. Each demonstration site will be subject to performance monitoring, including utility data collection, runtime logging, tenant feedback, and energy use analysis. NYSERDA will design, implement, and manage the monitoring plans with third-party contractors. The Demonstration Program will generate real-world performance data to evaluate PWHPs' effectiveness, durability, cost impact, and user satisfaction. Results may help determine whether these systems should become eligible under broader NYSERDA and Utility programs in the future, supporting long-term market transformation and building decarbonization goals.