Rental Property Investor · Rochester, NY · Member since 2016 · 12 posts · 1 vote
I own a 1900s multi-fam property that, as you might imagine, isn't the most efficient house on the block. I've briefly looked into NYSERDA and don't think I'd qualify for the low-income programs. Has any landlord had luck utilizing one of those, or a similar program to upgrade their insulation and/or mechanicals in a Multi-fam rental? If it matters, I pay heating (gas) for the entire home (one meter) but tenants pay their own electric. Particularly interested in options for upgraded insulation and boiler heating system, and any possible credits for that.
Owning an older multi-family property in New York definitely presents challenges when it comes to energy efficiency, especially with outdated insulation and heating systems. While it's true that many NYSERDA programs are income-based, there are still several avenues you might explore as a landlord, particularly if you're paying for the heating, which means you have a strong financial incentive to make efficiency upgrades. NYSERDA offers programs under the Multifamily Performance Program (MPP) and Energy Studies for Multifamily Buildings, which aren’t just limited to low-income properties. These programs can help fund upgrades to insulation, boilers, and other building systems—especially if the property has five or more units, but even 2–4 units may qualify for other efficiency support.
Because you cover the gas bill and the property has one meter, you're in a prime position to benefit from improvements like high-efficiency boilers, zone controls, and proper insulation, since you'll directly see the savings. NYSERDA sometimes offers low-interest financing or incentives through its Affordable Multifamily Energy Efficiency Program, and there are also utility-run rebate programs through providers like National Grid or Con Edison, which offer cash incentives for upgrading heating systems, adding insulation, and sealing air leaks—regardless of income. You may also be able to leverage federal tax credits under the Inflation Reduction Act (IRA) for energy efficiency upgrades—up to 30% of costs for certain improvements like heat pumps or insulation, with annual caps per building.
Your best move is to schedule a free energy audit through a NYSERDA-partnered contractor, who can walk through the property and help determine what upgrades make the most sense and which programs or rebates you may qualify for. If you're unable to tap into NYSERDA directly, check with your utility company or look into PACE financing (Property Assessed Clean Energy), which lets you pay for improvements through a property tax assessment, with no upfront costs. The landscape is complex, but with some legwork, there are definitely ways for landlords—even those outside of low-income qualifications—to modernize older buildings and capture both operational savings and long-term property value.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
@Lauren Robins thank you for the thorough reply. I'm in the 2-4 unit boat, and will look into the specific NYSERDA programs you mentioned. I don't have any personal experience with converting a heating system from 1 zone to multiple zones, but it's worth exploring as part of the overall process. Thanks again.