A little electrification now goes a long way! And buildings that act soon stand to benefit the most. Cutone & Company Consultants are excited to share some exciting news that could significantly impact how New York City buildings approach Local Law 97 (LL97) compliance.
Local Law 97 has introduced a major boost for electrification in its new rules finalized in December 2023. The new beneficial electrification credit (“BE Credit”) provides substantial rewards to building owners who replace fossil fuel systems with highly efficient electric heating, cooling, and hot water equipment.
The BE Credit is structured with two main components:
Negative Coefficient: The more energy used by eligible heat pump equipment, the larger the credit. Installations before 2027 earn double.
Electricity-Use Deduction: The energy used by heat pumps is deducted from the building’s total electricity use for LL97 emissions, further reducing emissions penalties.
For example, a 100,000 sqft multifamily building could face up to $55,000 in penalties for exceeding LL97 emissions in 2030. With just 17% of its fossil fuel use replaced with heat pumps, that building could reach compliance and slash penalties down to just $6,000 per year—all thanks to the BE Credit.
Time is critical. Cutone & Company Consultants can help you take advantage of these significant incentives before the window closes. The longer you wait, the fewer credits you’ll be able to apply to future compliance periods. We’ll work with you to ensure your building not only meets LL97 requirements but also optimizes savings.
ConEdison is now cancelling their lighting incentive! – Read about it here.
Ready to make your building more efficient and compliant? Contact Cutone & Company Consultants today and explore how the BE Credit can transform your building’s energy future!