Energy efficiency and building electrification have emerged as two of the most effective tools in the effort to cut carbon emissions. Recently, the state of New York made a major investment in both.

On May 15, 2025, the New York State Public Service Commission (Commission) authorized $5 billion over five years to be spent on programs that will increase access to energy efficiency and clean energy solutions across the state’s buildings sector. The funds will also help increase access for low-to-moderate income (LMI) households and affordable multifamily buildings.

The funds will be administered by the state’s large investor-owned electric and gas utilities and the New York State Energy Research and Development Authority. They will be spent in increments of $1 million per year over the five-year time frame.

The announced funding will support a broad range of programs to support the expansion of energy efficiency and building electrification, including the installation of heat pumps, workforce training, consumer education and outreach, lighting, weatherization and the “direct-install” of energy-efficient appliances.

The Commission notes that by the end of 2030, when combined with other ongoing programs, the announced funding will achieve total lifetime energy savings of just over 615 trillion British thermal unit equivalents, or approximately the amount of energy used by up to 400,000 typical homes in New York.

The Commission also emphasized the benefit of focusing part of the funding on LMI households, which are disproportionately impacted by high energy costs. The programs will “help vulnerable New Yorkers control their energy costs and access the benefits of clean energy solutions.”