Tenant Resources

ULI Tenant Energy Optimization Program

Urban Land Institute’s (ULI) Tenant Energy Optimization Program demonstrates how energy efficiency can be integrated into tenant space design and construction to deliver financial benefits through energy conservation. The program is based around a ten-step process that guides building owners through each phase of an energy optimization project, from pre-lease through post-occupancy. This ten-step process was tested, refined, and documented in ten pilot project case studies, which detail the experiences and lessons learned through the tenant energy optimization process. To further support adoption of the tenant energy optimization process, ULI has produced countless tools and resources that can be utilized to replicate successful projects. 

Source: ULI

Federal Incentives

Federal Incentives for Decarbonizing Large Buildings 

Leveraging the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) 

The Inflation Reduction Act (IRA) is a $370 billion dollar investment in US climate action, the largest in history. It is estimated to reduce US greenhouse gas emissions by 405 by 2030 versus the 2005 baseline. Passed in 2022, the IRA, paired with the Bipartisan Infrastructure Law (BIL) and other federal policies and initiatives, offers a suite of federal incentives aimed at promoting the decarbonization of large buildings. These incentives are designed to encourage building owners to invest in energy-efficient and sustainable technologies, thereby reducing their carbon footprint and contributing to national climate goals.  

Key components relevant to large building owners include: 

Section 179D – Energy Efficient Commercial Buildings Deduction (IRA Sec. 13303): 

  • Purpose: Encourages the installation of energy-efficient systems in commercial buildings. 
  • Eligibility: Applicable to commercial building owners for both new and existing buildings and available to architects, mechanical engineers, electrical engineers, and other designers of tax-exempt buildings.  
  • Benefit:
    • Increases deduction from $1.80/square foot to sliding scale of $2.50-$5.00.
    • Projects must achieve 25%-50% better performance than applicable ASHRAE 90.1 standard (starting with ASHRAE 90.1-2007 for projects placed in service in 2023-2026, and 90.1-2019 for projects placed in service starting in 2027). 
    • Receiving full credit requires meeting prevailing wage and apprenticeship provisions. Deduction drops to $0.50-$1.00 if not met. 
    • Creates new pathway for existing building retrofits to more easily access the deduction by demonstrating 25-50% energy use intensity improvement over one year to receive sliding scale deduction of $2.50-$5.00. 
    • IRS released new Form 7205 for claiming 179D. Awaiting guidance on filing. 
    • Unlike other incentives, 179D is permanent, and adjusts annually for inflation. 
    • Creates new pathway for nonprofit entities to access deduction by allocating it to project designer (as government entities have been able to do).

Section 48 – Clean Energy Investment Tax Credit (ITC): 

  • Purpose: Supports the adoption of renewable energy systems, such as rooftop solar, geothermal, CHP and storage in commercial buildings and at the utility-scale. 
  • Eligibility: Available to owner of renewable energy project. Non-taxable entities may access this tax credit using direct pay. All other entities may use transferability. 
  • Benefit: For most projects, credit of 30% of investment if wage and apprenticeship provisions met, dropped to 6% if not met. Projects smaller than 1MW not required to meet wage and apprenticeship provisions. Credit increases by additional 10% if domestic content requirements are met and another 10% if the project is in a designated “energy community” such as a census tract with shuttered coal operations. Additional bonus credits of 10% or 20% for qualified solar and wind projects serving low-income communities. Max credit of 70% if all bonus criteria is met.
  • Direct Pay: New options for “direct pay”–also called “elective pay”–for government and nonprofit entities to use credit even without tax liability. Starting in 2024, direct pay is phased out for projects larger than 1MW that does not meet domestic content.

Section 30C – Alternative Fuel Vehicle Refueling Property Credit (IRA Sec. 13404)

  • Purpose: Expanded tax credit for EV charging systems and other alternative fuel vehicle infrastructure through 2032.
  • Eligibility: Businesses and individuals that place qualified refueling property into service during the tax year.
  • Benefit: 
    • Credit of 30% of expenses up to $100,000 per charging/fueling unit on commercial properties, including retail, office, etc. (Past cap was $30,000 per property.) 
    • Starting in 2024, eligible properties must be in defined rural or low income census tracts. See map here for eligible tracts. 
    • Must meet prevailing wage and apprenticeship program requirements or credit is reduced to 6%. 
    • Credit taken in year property placed in service (i.e. made operational) 
    • Awaiting guidance on specific charging unit investments that qualify (i.e. electrical upgrades or wiring shared across units).
  • Direct Pay: Includes “direct pay” and transfer provisions

Greenhouse Gas Reduction Fund (GGRF): 

  • Purpose: Aims to finance a wide array of projects that reduce greenhouse gas emissions, with a focus on disadvantaged communities. 
  • Benefit: Creates a new $27B “green bank” through EPA to stand up national climate financing initiative, with three funding buckets: $7B for Solar for All, which will funds states, tribal governments, municipalities, and financial nonprofits to set up low-income solar programs across the country. $6B for Clean Communities Investment Accelerator and $14B for National Clean Investment Fund to fund financial nonprofits to use a range of financial tools to support decarbonization projects in low-income and disadvantaged communities. 
  • Eligibility: Targeted at state, local, and tribal governments, as well as financial non-profit organizations. Awards will be announced in March 2024, with funding rolling out in July 2024 and financing offerings available soon after. 

Climate Pollution Reduction Grants 

  • Purpose: Supports the development and implementation of plans to reduce greenhouse gas emissions.
  • Benefit: Provides $5 billion in grants to states, local governments, tribes, and territories to develop and implement ambitious plans for reducing greenhouse gas emissions and other harmful air pollution. $250M for planning grants, with one $3M grant for each participating state to develop plans to reduce GHG, along with smaller grants to the largest 67 metropolitan areas and to tribal governments. Learn more about your state or local plans.  Balance of $4.6B for implementation grants awarded on a competitive basis. State and local governments must be part of a planning grant to be eligible for implementation grants, with applications due April 1, 2024.
  • Eligibility: State, MSA, and tribal territories are eligible.  

Key programs relevant to multifamily building owners include: 

New Energy Efficient Homes Credit (45L): 

  • Purpose: Expanded homebuilder tax credit for new home construction, including multifamily, through 2032.
  • Eligibility: Homebuilders constructing new energy-efficient homes are eligible for this credit. 
  • Benefit:
    • Increased from $2,000 per unit historically for meeting IECC reference to $2,500 for meeting ENERGY STAR and $5,000 for DOE Zero Energy Ready Homes
    • Previously limited to multifamily buildings three stories or less, updates make it accessible to all multifamily at $2,500/$5,000 per unit. 
    • Prevailing wage provisions apply to multifamily projects, which receive reduced credit of $500/$1,000 without meeting them. 
    • Credit taken by contractor in tax year home was acquired (i.e. sold or leased). 
  • Direct Pay: Does not include direct pay or transfer provisions. But the IRA made the credit available for use with Low-Income Housing Tax Credit (LIHTC) projects without reducing LIHTC basis, increasing its value for affordable housing.

Green and Resilient Retrofit Program (GRRP): 

  • Purpose: Provides funding for energy and water efficiency improvements, indoor air quality enhancements, and resilience measures in HUD-assisted multifamily properties. 
  • Benefit: Offers $1 billion in grants and up to $4B in loan authority for projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or make properties more resilient to climate impacts. Three funding buckets:
    • Elements: Up to $750,000 per property or $40,000 per unit for specific resilience or efficiency strategies, such as installing heat pumps, with $140 million in total funding. 
    • Leading Edge: Up to $10 million per property or $60,000 per unit for completing a multifaceted renovation that earns an ambitious green building certification such as LEED Zero, with $400 million in total funding.
    • Comprehensive: Up to $20 million per property or $80,000 per unit for deep utility retrofits and climate resilience upgrades. Includes $42.5M for energy and water benchmarking activities.
  • Eligibility: Owners of HUD-assisted multifamily properties are eligible for this funding. HUD will also conduct energy and water benchmarking of HUD-assisted properties. 

Home Efficiency Rebate Program: 

  • Purpose: Encourages whole-home energy efficiency improvements. 
  • Benefit: Provides $4.3 billion in grants to State energy offices and tribal entities to develop and implement a whole-home rebate program. Available to households of any income and owners of multifamily projects. Higher cost share for households below 80% of Area Median Income (AMI). Rebates typically range from $2,000-$8,000 for individual household or multifamily unit, or potentially higher.
  • Eligibility: Available to households participating in the program developed by their state energy office or tribal entity. 

Home Electrification and Appliance Rebate Program: 

  • Purpose: Supports the electrification of homes and the use of high-efficiency electric appliances. 
  • Benefit: Allocates $4.5 billion in grants to State energy offices and tribal entities to develop and implement a high-efficiency electric home rebate program. This program offers point-of-sale electrification rebates exclusively for low and moderate-income households (below 150% of AMI), up to $14,000 per unit. low- and moderate-income households, including for owners of qualifying multifamily projects. Covers 50% of expenses for incomes 80%-150% of AMI and 100% for incomes below 80% of AMI. ncludes point of sale rebates.
  • Eligibility: Low and moderate-income households are eligible for this program. Multifamily buildings must have at least 50% of residents below 150% of AMI to be eligible for 50% cost share, and at least 50% of residents below 80% of AMI to be eligible for 100% cost share.

Assistance for Latest and Zero Building Energy Code Adoption: 

  • Purpose: Supports the adoption of updated building energy codes, including zero-energy codes. 
  • Benefit: Provides $1 billion in grants to state and local governments to adopt and implement updated building energy codes. 
  • Eligibility: State and local governments are eligible to apply for these grants to update their building energy codes. 

The Inflation Reduction Act provides a comprehensive set of incentives for large building owners to decarbonize their properties. By leveraging these federal programs, building owners can reduce their environmental impact, lower operational costs, and contribute to the broader goals of sustainability and climate resilience. 

Information on “Direct Pay” and Transfer Provision

White House Info Page, IRS Proposed Rule, and IRS Info Page

Direct pay (formally called elective pay) allows tax-exempt entities, including municipalities, schools, states, universities, nonprofits, hospitals, etc., to receive payment – or essentially a rebate – for the amount of the tax credit even if they have no tax liability. 

  • Applies to many but not all IRA tax incentives. Most relevant for buildings, applies to ITC for renewable energy, storage, microgrids, etc., and EV charging infrastructure credits. 
  • Credit is taken annually for the tax year property is placed into service (ie rooftop solar placed in service in Sept. 2023, credit taken when filing 2023 taxes in 2024.) 
  • Filers required to submit pre-filing registration delineating projects/property and receive a registration number for each project/property to include on tax returns.
  • Tax form used for direct pay may vary – typically Form 990-T for those that don’t file federal taxes. 

Transferability 

  • Entities ineligible for direct pay can now transfer, or essentially sell, credits. 
  • Reports indicate credits are selling for approximately 95 cents on the dollar.

This resource is a compilation of content from USGBC and RMI resources. For more information, please visit the US Department of Energy and IRS websites. For further information on incentives for federal buildings or individual households, please refer to USGBC’s Buildings and the IRA presentation. More information and resources are found on our resource library under Federal Incentives. 

Resource Name Description  Source 
Inflation Reduction Act: Programs and Incentives This spreadsheet was built off of the list of Inflation Reduction Act (IRA) funding programs published by the White House as a complement to its IRA GuidebookRMI  
Guide to Federal Clean Energy Incentives RMI’s collection of resources including articles, tools, and success stories to understand and maximize the benefits of IRA, the BIL, and related federal policies and incentives.RMI  
Clean Energy Tax Provisions in the Inflation Reduction Act Table providing key information about tax provisions and links to the latest announcements related to their implementation from the White House.  The White House 
White House Guidebook of Inflation Reduction Act Programs   High level program-by-program overview of the Inflation Reduction Act, including who is eligible to apply for funding and for what purposes. The White House 
White House Guidebook of Bipartisan Infrastructure Law High level overview of how much funding is available at the program level for BIL to help partners across the country know what to apply for, who to contact for help, and how to get ready to rebuild. The White House 
DOE Funding and Incentives Resource Hub  Tool to help building owners navigate and discover the many rebates, funding opportunities, and other incentives including those available through the Inflation Reduction Act and Bipartisan Infrastructure Law. Better Buildings DOE 
Federal Funding Opportunities to Support Sustainable Development Hub of resources that highlight opportunities for the real estate industry to leverage and/or access federal infrastructure funds to support sustainability, resilience, health, and real estate and economic development goals. ULI  
Leveraging Federal Funding Opportunities for Sustainable Development Article explaining how can real estate developers access and leverage this funding and play a role in shaping infrastructure decisions to drive sustainability outcomes in cities ULI  
Building Provisions in the IRA Presentation Slide presentation covering the green building and sustainable communities provisions in the Inflation Reduction Act.  USGBC/DOE  
Commercial Building Incentive Programs in IRA and other Federal Laws  Brief detailing the multiple programs and tax incentives to improve the energy efficiency of new and existing commercial and public buildings. ACEEE 
Rewiring America IRA Fact Sheets Fact sheets on specific programs, rebates, and tax credits for building owners, homeowners, manufacturers, and contractors.  Rewiring America  
FAQs about IRA Incentives FAQs relevant to building and homeowners when determining how to use IRA tax credits and incentives.  Rewiring America  
Source: RMI, USGBC

Financial Planning

Local Law 97 Carbon Emissions Calculator

The Local Law 97 (LL97) Carbon Emissions Calculator, published by Building Energy Exchange (BE-Ex), estimates a building’s carbon penalties as a result of LL97. This tool allows users to automatically load building data from NYC’s benchmarking database or manually enter information to generate carbon thresholds, potential penalties, and utility cost metrics across each compliance period. Access the tool below to better understand how LL97 will impact your building.

Strategic Decarb 101

High Rise / Low Carbon Event Series: Nimble Brains for Complex Systems

As buildings transitioned from analog to digital systems, controls were dominated by platforms with high financial and educational entry thresholds. But our ability to orchestrate complex systems in buildings has transformed. It is now possible to capture and redeploy heat throughout a building, continually optimizing this thermal dispatch model in real time and keeping HVAC systems running at the highest possible level of performance, without cumbersome hardware.

Leveraging software to enable grid interactivity through building thermal management can radically reduce the amount of grid-level electric battery storage necessary, allow for better utilization of renewable electricity, smooth building demand peaks, and reduce the need for peaking natural gas power generation.

During this High Rise / Low Carbon series program developed to support the Empire Building Challenge and other NYSERDA programs, hear from experts who are deploying these technologies and utilizing Resource Efficient Decarbonization strategies to optimize performance in low-carbon retrofits.

Opening Remarks

Thomas Yeh, RTEM Advisor, NYSERDA

Moderator

Nyla Mabro, Head of Strategy & Marketing, The Clean Fight

Presenters

Matthew Sheridan, Energy Manager – Rockefeller Center, Tishman Speyer
Thomas Walsh, General Manager – Manhattan West, Brookfield PropertiesPanelists
Neil Breen, Vice President, Energy Services, Ramboll
Javier Aleman, Principal, AXC Automation

Source: Building Energy Exchange

Strategic Decarb 101

About Resource Efficient Decarbonization

Insights from Empire Building Challenge

Improved engineering design means and methods are needed to enable and speed adoption of low-carbon retrofit technologies. High performance, low-carbon heating and cooling systems are widely available but are underutilized in the United States due to a variety of misconceptions and a lack of knowledge around thermal system interactions. Few practicing engineers prioritize recycling heat and limiting heat loss. Decarbonization requires upgrading and adapting energy distribution systems originally designed to operate with high temperature combustion to integrate with electric and renewable thermal energy systems. The engineering design industry can use a thinking framework like Resource Efficient Decarbonization (RED) to deliver projects that achieve more effective decarbonization.  

This framework emerges from the Empire Building Challenge through continued collaboration among real estate partners, industry-leading engineering consultants, and NYSERDA. RED is a strategy that can help alleviate space constraints, optimize peak thermal capacity, increase operational efficiencies, utilize waste heat, and reduce the need for oversized electric thermal energy systems, creating retrofit cost compression. While RED is tailored to tall buildings in cold-climate regions, the framework can be applied across a wide array of building types, vintages, and systems. The approach incorporates strategic capital planning, an integrated design process, and an incremental, network-oriented approach to deliver building heating, cooling, and ventilation that: 

  • Requires limited or no combustion,
  • Enables carbon neutrality,
  • Is highly efficient at low design temperatures and during extreme weather,
  • Is highly resilient, demand conscious, and energy grid-interactive,
  • Reduces thermal waste by capturing and recycling as many on-site or nearby thermal flows as possible, and
  • Incorporates realistic and flexible implementation strategies by optimizing and scheduling phase-in of low-carbon retrofits competing with business-as-usual.

Decarbonization Framework

Resource Efficient Decarbonization focuses on implementing enabling steps that retain a future optionality as technology and policy evolves. This framework allows a building owner or manager to take action now, instead of waiting for better technology and potentially renewing a fossil-fueled powered energy system for another life cycle.

The figure below illustrates a conceptual framework for accomplishing these objectives and overcoming the barriers. Specific measures and sequencing will be highly bespoke for a given building, but engineers and their owner clients can use this bucketed framework to place actionable projects in context of an overarching decarbonization roadmap.

Resource Efficient Engineering Steps

Step-by-Step Process to Advise Decarbonization Efforts

  1. Understanding a building’s fossil fuel use in detail is a critical first step. Make an effort to understand when, where, how, and why fossil fuels are being consumed at the building and under what outdoor temperature and weather conditions. Conduct a temperature BINS analysis to know how much fossil fuel is consumed during various temperature bands (typically in 5- or 10-degree increments) from design temperature up to the end of the heating season. Make an effort to understand cooling season usage patterns in detail. Go further and conduct an 8760 hour/year analysis or modeling effort to show building operation profiles with high granularity to advise targeted elimination of fossil fuel consumption.
  2. While electrification is desirable to combat climate change, energy efficiency is a  critical component of decarbonization. Reducing heating and cooling loads across all weather conditions is a major early step to achieve RED. 
  3. Identify the ways heat is being gained or lost. Hint: some places to look at are cooling towers, facades and windows, elevator machine rooms, through sewer connections, or at the ventilation exhaust system. Cooling towers operating in the winter are an obvious energy wasting activity. Seek solutions to reduce, recover, and recycle or reuse, and store this heat. 
  4. After, or in parallel with the previous steps, begin to electrify the building heat load, starting with marginal “shoulder season” loads (spring and fall). Don’t force electric heating technology such as air source heat pumps to operate during conditions for which they weren’t designed. Optimize heat pump implementation through a “right sizing” thermal dispatch approach to avoid poor project economics and higher operating expenses. This means continuing to retain an auxiliary heating source for more extreme weather conditions until fossil fuels are ready to be fully eliminated. This approach provides owners time to identify the right peak period heating solution while allowing them to act early in driving down emissions. Emissions reduced sooner are more valuable than emissions reduced in the future.
  5. Remove connections to fossil fuels and meet decarbonization deadlines!

Take Actions with these Enabling Steps

Review

  • Disaggregate time-of-use profiles to identify heat waste and recovery opportunities and to right-size equipment.
  • Thermal dispatch strategy: layering heat capacity to optimize carbon reduction and project economics.

Reduce

  • Repair, upgrade and refresh envelopes.
  • Optimize controls.

Reconfigure

  • Eliminate or reduce inefficient steam and forced air distribution.
  • Create thermal networks and enable heat recovery.
  • Lower supply temperatures to ranges of optimal heat pump performance.
  • Segregate and cascade supply temperatures based on end-use.

Recover

  • Simultaneous heating and cooling in different zones of building.
  • Eliminate “free cooling” economizer modes.
  • Exhaust heat recovery; absorbent air cleaning.
  • Building wastewater heat recovery.
  • Municipal wastewater heat recovery.
  • Steam condensate.
  • Refrigeration heat rejection.
  • Other opportunistic heat recovery and heat networking.

Store

  • Store rejected heat from daytime cooling for overnight heating.
  • Store generated heat— centrally, distributed, or in the building’s thermal inertia.
  • Deploy advanced urban geothermal and other district thermal networking solutions.

Building Systems Topologies

Commercial Office

Commercial office buildings offer significant heat recovery and storing opportunities due to simultaneous heating and cooling daily profiles. As a result, offices can heat themselves much of the year with heat recovery and storage. Example load profiles for typical heating and cooling days in a commercial office building are shown in the graph below.

Office heat and cooling load

Multi-family

Multi-family buildings’ typical daily profiles show efficiency opportunities that can lower and flatten system peaks. This can be achieved by a variety of heat reduction, recovery, and storing strategies​. Example load profiles for a typical heating day in a multifamily building are shown in the graph below.

Multifamily heat load

Thermal Distribution Opportunities

The thermal energy network approach enables transaction of thermal energy to increase overall system efficiency and reduce wasted heat. The concept can be applied at the building level (with floor-by-floor heat exchange), to groups of buildings, to whole neighborhoods, or to cities. Below is an illustration of a whole-system, thermal network approach applied in an urban environment to supply clean heat in cold-climate tall buildings:​

Resource Efficient Engineering Steps Exemplified

Federal Incentives

Breaking Down the Inflation Reduction Act

A sortable and filterable list for stakeholders big and small.

This spreadsheet was built off of the list of Inflation Reduction Act (IRA) funding programs published by the White House as a complement to its IRA Guidebook. First released in April, RMI updated this spreadsheet in July 2023 to reflect new information. The spreadsheet uses, as a start, the list of IRA funding programs published by the White House (“federal summary”) as a complement to its IRA Guidebook. It builds off this federal summary by increasing the ability of users to sort and filter funding sources based on criteria such as sector, topic, funding eligibility, and funding type. It also increases the comprehensiveness of the federal summary, including by adding IRA-related tax incentives, and it adjusts certain aspects of the federal summary to make them more up to date and complete.

Disclaimer: Information in this spreadsheet should be treated with an element of caution as many of these funding programs are under development and rapidly evolving.

Source: RMI

Financial Planning

Financing Decarbonization Retrofits

Insights from the Empire Building Challenge

Financing can make or break a project. Presenting the different financing options to the project ownership team and decision-makers at the onset can increase the likelihood that a project will be implemented. Below is a non-exhaustive list of currently available financing resources and an overview of options to pay for energy-related building improvements. 

Incentives and Rebates 

All project teams should investigate federal, state, and local utility incentive programs and rebates, including as part of their financing model. Certain incentives are predictable and reliable enough that they can reasonably be included in the decision-making process with relatively low risk (e.g., incentives for lighting upgrades). Specialized incentive programs for new technologies with large carbon reduction potential should also be considered as they may significantly improve the financial performance of a decarbonization solution. For example, studying and pursuing incentives associated with heat pumps may reduce the payback time or improve the NPV of heating electrification measures.

Find more information on local utility programs in the Database of State Incentives for Renewables and Efficiency (DSIRE). 

NY Green Bank

NY Green Bank (NYGB) fills gaps in the market where financing may not be available from conventional lenders   by offering financing for a wide variety of building decarbonization projects.  The NYGB can come in at multiple points in the capital stack and project lifecycle, including: 

  • Predevelopment
  • Construction/construction-to-permanent
  • Term
  • Mid-cycle improvement loans
  • Preferred equity

NYGB also offers creating financing solutions, such as:

  • On-lease financing for commercial tenant efficiency improvements
  • Energy saving loans for ESCOs
  • Predevelopment loans for NYCHA PACT conversions

Learn more about NYGB.

New York Energy Efficiency Corporation

The New York City Energy Efficiency Corporation (NYCEEC) is a clean energy and energy efficiency lender, financing a wide range of energy efficiency and clean energy technologies throughout the Northeast and Mid-Atlantic regions, including: 

  • Energy efficiency
  • Renewables
  • Storage
  • Fuel conversions
  • High performance/Passive House Buildings

NYCEEC is also the City of New York’s designated administrator of the NYC Accelerator PACE Financing program. Learn more about the NYC Accelerator PACE Financing program.

PACE Financing

Property Assessed Clean Energy (PACE) financing is available for commercial and multi-family building owners. Unlike conventional financing, PACE is repaid in installments through a charge on the subject property’s tax bill, allowing for longer term, flexible financing. Read more about PACE financing guidelines.

  • PACE in New York City: NYC Accelerator PACE is offered by the New York City Mayor’s Office of Climate & Environmental Justice, in partnership with the New York City Energy Efficiency Corporation (NYCEEC), who oversees PACE applications and approvals of the PACE Lenders for New York City. View a list of pre-qualified PACE lenders in New York City.
  • PACE outside New York City: PACE financing is available through the Energy Improvement Corporation’s Energize NY OPEN C-PACE program (EIC). Learn more about the EIC program.

On-Lease Financing for Commercial Tenants

Improving the energy efficiency of leased spaces in commercial buildings is key to supporting building-wide decarbonization efforts. The NY Green Bank offers an innovative financial product for commercial tenants to access financing to reduce their energy consumption, utility costs, and environmental impacts. This may be achieved without upfront investment and with the potential to generate positive cash flow as soon as efficiency improvements are placed in service. Through this innovative financing option, NYGB provides funding to the commercial property owner, who can offer their commercial tenants financing to make energy efficiency improvements to their leased spaces. The tenants repay the building owner via an on-lease repayment mechanism. Contact NYGB to learn more about their offerings.

Financing Options by Typology

Visit NYC Accelerator to learn more about the range of financing options available for different building and ownership types, including an option to contact Financing Specialists from the New York City Mayor’s Office of Climate and Environmental Justice for additional support.

Strategic Decarb 101

Resource Efficient Decarbonization Guide

This guide presents a three-step process for real estate owners, in coordination with engineers and designers, to develop a technically and economically feasible decarbonization plan for their building.  This holistic approach is informed by lessons learned from low-carbon demonstration projects funded through the Empire Building Challenge to help building owners develop and adopt successful plans for retrofitting their building. 

Source: NYSERDA

Federal Incentives

ULI Federal Funding Opportunities 

The resources linked below highlight opportunities for the real estate industry to leverage and/or access federal infrastructure funds to support sustainability, resilience,  health, and real estate and economic development goals. ULI will continue to add additional resources here as new opportunities arise. Investments in decarbonization by developers can have financial returns in the form of lower operating costs, increased property values, and attracting and retaining tenants. In addition, reducing greenhouse gas emissions and creating communities that are less reliant on cars can support developer and tenant ESG goals.

Source: ULI