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Industrial and Process Efficiency Performance Incentives

Federal Government
Savings Category 
Heat recovery
Compressed air
Motor VFDs
Processing and Manufacturing Equipment
Custom/Others pending approval
Other EE
Data Center Equipment
Maximum Rebate 

50% of project cost, up to $5 million per facility per year (electric) or $1 million per facility per year (gas)

Program Info
Sector Name 
New York State Energy Research and Development Authority
Funding Source 

Energy Efficiency Portfolio Standard (EEPS)/ System Benefits Charge (SBC)

Expiration Date 


New York
Program Type 
Rebate Program
Rebate Amount 

Electric Process and Energy Efficiency: $0.12/kWh (upstate) or $0.16/kWh (downstate)
Gas Process and Energy Efficiency: $15/MMBtu (upstate) or $20/MMBtu (downstate)
Operational and Maintenance: $.05/kWh (electric) and $6/MMBTU (gas)


Note: As of August 31, 2014 the program is no longer accepting applications for Natural Gas efficiency programs, as all of the funds have been committed. Funds for Electric Efficiency projects are still available, and are actively accepting applications.

The New York State Energy Research and Development Authority (NYSERDA) offers the Industrial and Process Efficiency (IPE) Program to provide performance-based incentives to manufacturers and data centers implementing energy efficiency and process improvements that reduce energy costs. The goal of the IPE Program is to help manufacturers and data centers increase product output and data processing to make it as efficient as possible. Incentives are available for both electric and gas efficiency improvements at both existing facilities and in new construction. Facilities must pay into the System Benefits Charge (SBC) in order to be eligible for incentives. Energy savings projects can fall into several different categories, including but not limited to the examples described below.

Process Efficiency

  • Industrial and data center process improvements or new installations
  • Capacity additions that improve the energy use per unit processed
  • Quality improvement
  • Waste and scrap reduction
  • Throughput increase
  • IT improvements

Energy Efficiency

  • Energy recovery from an industrial process
  • Space conditioning improvements
  • Pumping system improvements
  • Compressed air efficiency
  • Fluid and support system improvements

Operational and Maintenance

  • Compressed air system leak management
  • Replacement of leaking steam traps
  • Installation of cogged styles fan belts
  • Burner tune-up
  • Server power management
  • Air flow controls optimization
  • Dynamic temperature monitoring and adjustment

Incentives are provided on the custom application of commercially available technology. Application for the incentive must be submitted within 90 days of contracting, and before the projects are initiated. Each project will be unique based on the applicant's needs and site-specific process. Energy savings incentives are based on one full year of energy savings. For productivity improvements, the energy savings will be calculated by determining energy use per unit of production or workload before and after the improvement, and multiplying the difference by the new output.

NYSERDA also offers incentives for certain pre-qualified measures and performance incentives for other electric efficiency, gas efficiency, and demand response through the parent Existing Facilities program. Facilities may apply either on their own behalf or through their designated applicant. Funding is available on a first-come, first-served basis and is available through December 31, 2015. Interested parties may visit the program website or use the contact information below to find out more information about this program.