Data center operators and owners in New York planning energy efficiency and other energy-related projects should check to see if they qualify for demand-based financial incentives.  Significant incentives are available for evaluation and implementation of energy efficiency and demand reduction projects from the New York State Energy Research and Development Authority (NYSERDA), the Consolidated Edison Company of New York (Con Edison) and, at times, other New York utilities, which provide funding to help customers identify and offset the cost of data center efficiency projects.

NYSERDA’s Process Efficiency (IPE) Program:  The IPE offers performance-based incentives to help data center owners and operators offset the cost of investments in energy efficiency and IT productivity projects in their data centers.  Depending upon whether it is “upstate” or “downstate,” the incentives for air flow management, CRAC, use of waste, heat and UPS system upgrades are, respectively, Process and Energy Efficiency Electric $0.12/kWh or $0.16/kWh.  For O&M, the incentive is $0.05/kWh.   Applications must be made prior to 12/31/15.  These Data Center incentives are available for new construction and existing facilities until funds are exhausted.  To participate, data centers can call 1-866-774-8818 or fill out the Customer Assistance Form [PDF] and send it by email to: Outreach@nyserda.ny.gov

The Data Center Efficiency Program (DCEP):  DCEPis provided by NYSERDA and Con Edison to assist Con Edison customers in its service territory identify and offset the cost of data center efficiency projects.  Under the new initiative, Con Edison and NYSERDA will work together to provide data centers with individualized and targeted technical assistance as well as up to $10 million in funding for energy efficiency initiatives that will generate as much as $8 million in annual energy savings.  DCEP provides financial incentives for data center efficiency projects and/or up to 50 percent reimbursement for the cost of data center energy studies.  Financial incentives are based on energy savings and range from $0.05 to $0.16 per kWh/yr. saved, up to $5 million per project:   

Demand Management Program (DMP):  Con Edison data center customers can receive incentives for projects completed before 6/1/16 including:

  • Thermal Storage - $2,600/kW
  • Battery Storage - $2,100/kW
  • Demand Response Enablement - $800/kW
  • HVAC/Controls/Process Efficiency - $0.16/kWh + $1,250/kW
  • Lighting - $0.16/kWh + $800/kW
  • Fuel Switching: Non-Electric AC (offered for installing steam or natural gas AC rather than electric AC) $500-1,000/kW depending on equipment.

NYSERDA also assists data center owners and operators through the following NYSERDA programs:

For all these programs, it is important to note the program eligibility and timing requirements.  Further, legal issues can arise in connection with obtaining NYSERDA or utility incentives necessitating contract or other review.  Applicants should consider seeking legal assistance in such situations.