STRATCO's Analysis of The Recent PSEG Incentive Changes

In light of PSEG's recent announcement regarding incentives for 2024, we will explore the details of these changes that will affect rebates. While there may be a reduction in incentive amounts across various categories, it signifies Long Island's commitment to achieving its climate goals.

The main changes:

  • Measure rebates for performance lighting have been decreased by $0.08/ per kWh.
  • The fast-track lighting has been adjusted to $5,000.
  • Geothermal rebates are now at a $50,000 cap.
  • All kitchen equipment has been removed from standard rebates in line with NYS appliance standards.
  • The recent update in Multi Family Rebate Applications underscores the removal of appliance and in-unit lighting rebates, coupled with a $100,000 cap per building for Heat Pumps/VRFs in new constructions and a $200,000 cap for existing buildings.
  • In-unit ENERGY STAR Heat Pump Water Heaters are now eligible for a rebate of $1,000 per unit.
  •  Commercial Heat Pumps are subject to a revised structure, featuring a $50/MMBTU rate and a $100,000 cap per building. Meanwhile, decommissioning Fossil Fuel incentives will adhere to a $120/MMBTU rate and a $200,000 cap per building.
  • Building weatherization with Heat Pump Installation for commercial buildings will see a rebate of $100/MMBTU.
  • Cost study Caps will see a reduction of 40%, and an updated Tier I and Tier II rebate cap will be $20,000.
  • Technical assistance for LEED will see a 20% reduction.
  • Energy Model Cost cap will see a 40% reduction, whilst a Whole Building Cost Cap will see a 20% reduction.

Looking ahead:

STRATCO is a third-party specialist that navigates the PSEG Long Island programs. STRATCO specializes in creating unique business plans for its clients to solve underserved needs in the marketplace. STRATCO serves the entire value chain with in-depth services to obtain the government incentives available for projects.  To learn more about how the new incentives may impact on your development, please contact the below for a free of charge consultation.

Caoimhe Banahan

929 353 2768