New York State Department of Financial Services

12/15/2025 | Press release | Distributed by Public on 12/15/2025 11:43

Governor Hochul Announces More Than $23 Million Awarded to Advance Next Generation Building Innovation Projects in New York State

December 15, 2025
Albany, NY

Governor Hochul Announces More Than $23 Million Awarded to Advance Next Generation Building Innovation Projects in New York State

Governor Hochul Announces More Than $23 Million Awarded to Advance Next Generation Building Innovation Projects in New York State

Adoption of Scalable Technologies to Improve Energy Efficiency, Reduce Energy Demand and Lower Operating Costs

Governor Kathy Hochul today announced more than $23 million has been awarded to 24 projects through the NextGen Buildings Innovation Challenges program. The initiative aims to advance innovative building technologies for clean heating, ventilation, and air conditioning (HVAC) systems, thermal storage, building envelopes and intelligent building systems in New York State. With today's announcement, nearly $49 million has been awarded to 51 projects under Governor Hochul's leadership to address technology gaps that are barriers to advancing building decarbonization across the state through the program. These projects will accelerate the adoption of technologies that can be scaled in new and existing buildings to improve efficiency, reduce energy demand and lower operating costs, helping to make buildings more affordable for owners and occupants.

"Investing in modern and advanced building solutions will help New York reduce its carbon footprint, lower energy costs and build a more sustainable future," Governor Hochul said. "These awards support practical innovations that reduce energy use, improve comfort and give building owners more control over their energy bills. They will also strengthen resiliency by making buildings more reliable during extreme weather. This is how we move our state forward and deliver for New Yorkers."

Through the program, which is administered by the New York State Energy Research and Development Authority (NYSERDA), each project was awarded funding to develop, commercialize, and demonstrate a new product or solution that offers building owners affordable, efficient and clean energy options that help better control energy use. Five of the projects selected benefit low-to-moderate-income housing or are located in disadvantaged communities.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "NYSERDA's NextGen Buildings Innovation Challenges continue to move innovation forward in a way that is transforming how buildings are designed, operated, and powered across New York State. The awarded projects provide building owners the tools to retrofit existing buildings or equip new buildings with clean, efficient systems to manage energy use and improve comfort for occupants."

The projects awarded are focused on building envelope improvements, cost compression of ground source heat pump systems, enabling intelligent grid interactive buildings, thermal storage and intelligent grid interactive building solutions.

Key highlights include:

  • Solutions that improve the insulation and air sealing of the exterior walls of existing buildings.
  • Occupant-centric data-driven controls for multiple energy assets in commercial buildings to maximize reduction of peak energy load and ensure occupant comfort.
  • Solutions that reduce the cost of drilling the boreholes associated with geothermal energy systems.
  • Induction stoves with integrated batteries at a multifamily building.
  • The utilization of thermal storage to improve heat pump heating and cooling performance.
  • Control technology for demand management and load shifting of energy and grid interactivity.

For a full list of projects that received funding visit NYSERDA's website.

New York State Public Service Commission Chair Rory M. Christian said, "Kudos to Governor Hochul and her team of energy experts for moving forward with a plan to change the way buildings are designed, operated, and powered across New York State. These winning projects point the way for building operators to retrofit existing buildings or equip new buildings with clean, energy efficient systems; a win for all concerned."

State Senator Kevin Parker said, "New York has long been a leader in tackling climate change, and today's commitment to decarbonize our buildings marks another important step toward a sustainable and equitable future. These investments not only support innovative technologies and businesses, but they also create family-sustaining jobs and ensure that the benefits of a clean energy economy reach all communities, especially those historically left behind. I applaud Governor Hochul and NYSERDA for their vision and leadership in building a cleaner, stronger New York for generations to come."

State Senator Brian Kavanagh said, "The $23 million allocated today through the NextGen Buildings Innovation Challenges program is a critical part of our ongoing efforts to promote innovation and support a robust and affordable transition to a clean, efficient, and reliable energy system. Decarbonizing and greening our building stock is an important step towards achieving our ambitious climate goals, doing our part to protect New Yorkers and the world from extreme weather and other threats to our safety and wellbeing, and make our homes and businesses more affordable. I thank Governor Kathy Hochul, Doreen Harris and her colleagues at NYSERDA, and all of the property owners involved for their commitment to clean, efficient, affordable buildings!"

Assemblymember Didi Barrett said, "Decarbonizing our state's existing building sector, the largest source of statewide emissions, is critical to meeting our climate goals. This funding will help develop and demonstrate new solutions, furthering innovation while increasing comfort and affordability to residents."

Building Energy Exchange CEO Richard Yancey, FAIA, said, "We would like to congratulate all the winners of NYSERDA's NextGen Building Innovation Challenge, and the critical work they are doing to make our buildings dramatically more efficient, comfortable, healthy and affordable. New York State continues to lead in advancing innovative technologies for clean heating and cooling systems, thermal storage, building envelopes, and intelligent building systems. With the support of NYSERDA and the Governor, these innovators are helping to accelerate our transition to high performance buildings for everyone."

National Association of State Energy Officials (NASEO) President David Terry said, "As states work to bring advanced technologies to market, NYSERDA provides yet another invaluable example of supporting technologies that address the practical challenges of constructing and retrofitting efficient and affordable buildings. The NextGen Building Innovation Challenge is an excellent example of a public-private partnership of delivering technologies to scale energy efficiency projects."

Funding for this program is provided through the Clean Energy Fund (CEF).

About NYSERDA
For more than fifty years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. NYSERDA's Innovation and Research program is deploying approximately $1.2 billion over 15 years as direct research investments and commercialization support. To date, more than $800 million in investments have supported more than 700 companies and made nearly 300 products commercially available to individuals, businesses and utilities. Through NYSERDA and utility programs, more than $5.6 billion has been invested to decarbonize buildings and support high-efficiency all-electric heating and cooling technologies. Today's announcement advances Governor Hochul's commitment to decarbonize buildings, which are one of the most significant sources of carbon emissions in New York State.

New York State's Climate Agenda
New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

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New York State Department of Financial Services published this content on December 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 15, 2025 at 17:43 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]