EAG Pilot Frequently Asked Questions

Q: What is the Energy Affordability Guarantee Pilot?

A: The Pilot supports electrification and energy affordability for 1,000 income-eligible households by providing a supplemental bill credit aimed at limiting a customer’s total household electricity costs to no more than 6% of their annual income.

Q: Who can participate in the Pilot?

A: Participants of NYSERDA’s EmPower+ (Tier 1) program who have installed heat pumps and heat pump water heaters are eligible for the Pilot (an annual household income equal to or less than 60% of the State/Area Median Income (SMI/AMI)). Participants must also be enrolled in their utility’s Energy Affordability Program (EAP) to take part in the Pilot. The participant must annually recertify their income so that the participant’s EAG bill credit can be adjusted for income changes.

Q: What is the duration of the pilot?

A: Stage 1 will cover the first two years of the Pilot and focus on gathering insights on electricity use characteristics and costs over two heating and cooling seasons. Stage 2 of the Pilot will span an additional estimated 13 years, based on the estimated useful life (EUL) of the equipment installed for the project and the amount of time that the participant remains eligible to participate in the Pilot.

Q: Why is the Pilot limited to 1,000 customers statewide?

A: Stage 1 of the Pilot will necessitate close evaluation of a sample of utility customers to refine bill credit calculations to properly account for variation in electricity usage, electric rates, heating degree days, and housing typology. DPS will work with NYSERDA to ensure an equitable distribution of Pilot participants in disadvantaged communities and within in each of the investor-owned utility territories including LIPA.

Q: Where can I learn more about electrifying my home?

A: To help New Yorkers access and navigate opportunities in the clean energy economy, NYSERDA created the Regional Clean Energy Hubs. Hubs help and provide information to individuals, small businesses, and affordable housing owners about the benefits of the clean energy economy, ways to reduce energy use and costs, and how to make more informed energy decisions. View the list of Clean Energy Hubs to connect with your Hub and learn more. NYSERDA also has information, surveys, and guides on homeowner electrification.

Q: What is the effective useful life (EUL) of a heat pump?

A: Heat pumps come in multiple types and configurations that each contribute to the equipment’s effective useful life (EUL) ranging from 15-25 years.

Q: Is there a comprehensive guide/manual that would optimize the usage (including tips and maintenance requirements) and possibly extend the EUL of the appliances?

A: The New York State Energy Research and Development Authority maintains several fact sheets, guides, and resources for making the most out of your new heat pump. See the “Clean Heating and Cooling” for up-to-date materials.

Q: My electricity bills have increased since I had my heat pump installed, why is that?

A: A whole-home system will likely eliminate your fuel bill, but because heat pumps require electricity to run, you may have a higher electric bill — the increase in this bill will be offset by the elimination of your fuel bills. With a whole-home system, you can expect immediate savings if you currently heat with oil, propane, or electric baseboards. The Energy Affordability Guarantee Pilot will further protect income-eligible households who electrify against unexpected increases in home energy costs.

Q: Why is participation in EmPower+ a prerequisite to enrolling in the Pilot?

A: The 2023-2024 State Budget directed the Department to establish a program “to provide an energy affordability guarantee to participating residential customers in the EmPower Plus Program administered by NYSERDA who electrify their homes in accordance with program standards required by the authority.” The Public Service Commission interpreted that language as an explicit prerequisite to enrolling in the Pilot.

Q: How can I enroll in EmPower+?

A: NYSERDA’s The EmPower+ application allows low- to moderate-income residents to apply for energy efficiency incentives. This program is available for both owners and renters of 1-to-4 family homes. When you apply for the program, you will have the opportunity to select a program contractor or the program can assign one for you. If you are working with a NYSERDA energy advisor, you'll have the opportunity to include that in your application so they can follow the progress of your application and project. If you have any questions on NYSERDA’s 1-to-4 family programs or on the application process, please call 866-NYSERDA, reach out to your Clean Energy Hub, or email NYSERDA at: [email protected].

Q: How does the Guarantee affect other credits on my electric bill?

A: Participants must be enrolled in their utility’s Energy Affordability Program (EAP) to take part in the Pilot. Once enrolled, customers will see a modification to their EAP credit. Even if the participant is enrolled in budget billing, has a deferred payment agreement (DPA), or has arrears, they are still eligible for the Guarantee if they meet the other eligibility criteria.

Q: I am moving from my home, what will happen to the Guarantee Credit that I am receiving?

A: If a participant resides in a rental property and moves to a new housing situation, that dwelling must also be eligible for Empower+ services, or eligibility to receive the Guarantee would be suspended. For a tenant moving into a rental property that was previously occupied by a Pilot participant, the tenant must be determined to be income eligible to receive the Guarantee.

Q: If I don’t qualify for the Guarantee, what else can I do to save on energy costs?

A: Many energy efficiency programs exist to help New Yorkers lower their energy consumption and costs through in-home energy upgrades. Other programs like the Home Energy Assistance Program (HEAP), the Energy Affordability Program (EAP) and the Statewide Solar for All program, provide low-income customers with bill credits to make their bills more affordable. Contact your local Clean Energy Hub to learn about programs you could be eligible for and ways to save energy and money.