Window Heat Pump Demonstration Program - Phase II

The Window Heat Pump Demonstration Program is a NYSERDA initiative designed to accelerate market adoption of cold-climate plug-and-play 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. Phase II participation is limited solely to Participants qualified under Phase I of PON 6037. The Program is structured in two concurrent phases: Phase I involves Participant Qualification where manufacturers, suppliers, or distributors demonstrate their PWHP products meet Program technical specifications including cold-climate performance, energy efficiency, and plug-and-play installation requirements; Phase II involves Demonstration Projects where only Qualified Participants approved under Phase I may apply for incentives to install approved PWHPs in eligible multifamily buildings (Demonstration Sites). Demonstration Sites must meet performance monitoring requirements, and installations must adhere to tenant protection rules, particularly for low- to moderate-income (LMI) housing. Incentives are offered per unit based on site type: up to $2,250/PWHP (75% of cost) for LMI buildings and up to $1,500/PWHP (50% of cost) for market-rate buildings. Additional limits include a $2 million cap per PWHP brand, $500,000 cap per Demonstration Site, a minimum of ten (10) PWHPs that must be installed at proposed Demonstration Sites, and 20% of available incentives for each PWHP brand reserved for PWHPs deployed in Demonstration Sites in NYS 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 to ensure program transparency and technical rigor. Results from the Demonstration 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.