Kathy Hochul has announced a major $17.5 million investment to advance clean heating and cooling technologies across New York State, aiming to improve energy efficiency and reduce costs for residents.
The initiative, launched under the “Clean Heat for All: Room Heat Pump” program, is designed to promote innovative, energy-efficient solutions in residential buildings, particularly multifamily housing. The program is being administered by the New York State Energy Research and Development Authority.
Out of the total funding, $10 million has been allocated for field demonstrations of cold-climate window heat pumps in multifamily buildings. These systems are considered a practical retrofit solution, especially for older buildings that rely heavily on traditional cooling methods. Property owners and building managers will have the opportunity to test these technologies through 2027.
In addition, $7.5 million has been awarded to five qualified manufacturers to accelerate the development of advanced through-wall heat pump systems. Each company will receive $1.5 million to develop high-performance units capable of operating efficiently in colder climates. These products will undergo testing and are expected to be deployed in selected buildings as early as this winter.
Governor Hochul stated that New York continues to lead in adopting innovative technologies that support a transition to a clean energy economy. She emphasized that next-generation heat pump systems will not only improve indoor comfort but also help residents save on energy costs at a time when affordability is a major concern.
Officials say these plug-and-play systems will reduce energy consumption and eliminate the need for extensive building upgrades, making them more accessible for a wide range of housing types. The program will also collect performance data from field installations to better inform future adoption and scaling of the technology.
According to NYSERDA, nearly half of New York’s three million residential units were built after 1940 and could accommodate through-wall heat pump systems. Meanwhile, many older buildings still rely on inefficient window air conditioners, making them ideal candidates for energy-efficient upgrades.
State housing officials and industry leaders have welcomed the initiative, noting that it will play a key role in reducing greenhouse gas emissions and supporting New York’s long-term climate goals.
The investment is part of a broader effort to decarbonize buildings, which remain one of the largest sources of emissions in the state. To date, more than $5.6 billion has been invested in clean energy solutions for buildings across New York. Funded through the Regional Greenhouse Gas Initiative, the program aligns with the state’s climate agenda to achieve a carbon-free economy by 2050 while promoting sustainable growth and energy affordability.