New York Planning to Restore Funding to State’s Popular Energy Efficiency and Electrification Program

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In response to months of activism and advocacy against budget cuts to EmPower+, NYS is planning a record RGGI appropriation to program that reduces energy bills

MEDIA CONTACT:
Ali Hameed
ali.hameed@sunstonestrategies.org
201.285.9649

Albany, NY — Today, advocates celebrated the Hochul administration’s planned allocation of new Regional Greenhouse Gas Initiative (RGGI) funding to the EmPower+ program for 2025 and 2026, New York’s flagship energy efficiency and electrification program that was set to lose nearly two-thirds of its budget, cutting off residents and contractors from crucial funds that help lower energy bills, reduce climate pollution, and provide jobs across the state. 

The New York State Energy Research and Development Authority (NYSERDA) released an amended RGGI Spending Plan for the next three years, increasing funding for next year by over $90 million compared to its plan released in August. NYSERDA will accept comments on the proposed RGGI spending plan until January 9, 2026 and will be presented to the NYSERDA board for final approval at their January board meeting. Though this record setting allocation from the RGGI is an exciting development, the proposed plan shows a significant reduction in RGGI funding in 2027 and 2028, a hole that the State will need to fill in next year’s state budget. Advocates hope to continue their partnership with Governor Hochul and the legislature to ensure this funding is allocated. 

“In the midst of a brutally cold winter, too many New Yorkers are facing heating bills they simply cannot afford,” said Michael Hernandez, Rewiring America, New York Policy Director. “Investments in insulation and heat pumps deliver real, immediate savings by lowering monthly energy bills and reducing long-term heating costs. With one in seven New Yorkers already behind on their energy bills, NYSERDA’s record investment in the EmPower+ program will put money back in households’ pockets and provide critical relief to families trying to keep their homes warm, especially as federal support for energy efficiency is under attack.”

EmPower+ provides low and moderate-income households up to $10,000 to upgrade their homes with energy efficiency measures that reduce utility bills, lower greenhouse gas emissions, and improve the quality of homes. Since 2022, the program has increased in popularity with a 30% growth in participation, year-over-year. Earlier this year, uncertainty around the program’s future funding caused serious issues for contractors and service providers, many of whom specialize in providing services for New York’s low and moderate income households. 

“In a state with an older housing stock, energy efficiency upgrades like insulation and modern heating and cooling systems are the most immediate way to lower energy bills,” said Jessica Azaley, Executive Director of Alliance for a Green Economy. “Unfortunately, too many people can’t afford the upfront costs of these investments, which is why EmPower+ is a crucial program that enables families to make cost-saving upgrades to their homes. We thank NYSERDA for recognizing the importance of this program and adding this much-needed infusion of funds” 

Since New York state officials announced budget cuts to EmPower+, legislators, local contractors, energy experts, and climate advocates have been working to protect the program. In October, advocates organized a Halloween-themed press conference at the NYSERDA board meeting to warn of the harm that will be caused in 2026 with EmPower+ budget cuts, particularly as winter heating bills are projected to rise. Over the summer, more than a hundred businesses and organizations wrote to Governor Hochul urging her to protect the much-needed energy affordability program, particularly as the federal government cuts energy bill repayment and efficiency policies. 

“Contractors see the benefits of the EmPower+ program firsthand,” said Hal Smith, President of the Building Performance Contractors Association. “We feel proud when we are able to help homeowners upgrade their homes with the latest energy efficiency measures that can reduce costs and ensure enhanced comfort. Now, thanks to this new record amount of allocation, the EmPower+ program will continue to grow, training new contractors and helping existing ones grow their business. That translates to good, high-paying jobs for more New Yorkers. 

Program participant Lauren Giambrone in Germantown, NY shared her experience with EmPower+: “As a low income renter in Columbia County, accessing the EmPower+ program has been a personal lifesaver, and I urge this program to be protected at all costs. Prior to this program, my heating source was an old, outdated electrical baseboard heater that was wildly inefficient, not adequate for heating my home, and extremely costly. Because of the EmPower+ program re-insulating my rental unit and installing the heat pump, I was able to very affordably heat my home properly at a time when I was unable to work or physically access use of my wood stove. I also didn’t have any cooling system provided in my rental, so now with the extreme heat and wildfire smoke we’re experiencing this summer, my quality of life and health has been exponentially improved by the health saving benefits of the heat pump’s cooling capacity. I am extremely grateful for the EmPower+ program!”