NYSERDA Program Seeks Co-ops and Condos to Host Next-Gen Heating and Cooling Systems

Would you like your building to play host to cutting edge low-emission heating and air conditioning units? That’s the opportunity open to a handful of New York City co-ops and condos as part of a $10 million initiative by the New York State Energy Research and Development Authority (NYSERDA). Through participation in the Packaged Terminal Heat Pump (PTHP) program, boards can apply for their buildings to become demonstration sites for next-generation, high-efficiency cold-climate heat pumps.

The program is aimed at developing low-emission heating and cooling replacements for packaged terminal air conditioning (PTAC) units. These are self-contained devices — meaning the heat source and fan element are all in one place. PTHPs can easily take the place of through-wall AC units to do double duty both heating and cooling. “The ability to replace existing space heating systems without major infrastructure changes could be a game changer,” says  Mary Ann Rothman, executive director of the Council of New York Cooperatives & Condominiums. Unlike centralized heat pump installations, these plug-and-play units don’t require complicated electrical upgrades or the installation of refrigerant lines through the building. “It’s a decentralized system and that’s a major benefit,” says Andrew Briguet, an engineer at Rand Engineering and Architecture.

Applications for co-ops, condos and other multifamily buildings will open in early 2025. Manufacturers are asked to submit design proposals for consideration by Feb. 20, 2025, and those that are selected will have up to 18 months to develop their prototype PTHP units and receive up to $1,250,000 per product. “We are hoping this program will fund demonstrations of new heat pump products in 500 households, so we are looking for up to 20 demonstration partners,” says Michael Reed, acting head of large buildings at NYSERDA. These partners might include single co-ops or condos or multiple buildings in a property manager’s portfolio.

What’s unique about heat pump technology is that it uses electricity to move heat from one place to another rather than actually generating it. In summer, refrigerant expels heat from apartments. In winter, the refrigerant absorbs heat from the air outside, even at low temperatures, and delivers it to apartments. However at very low temperatures, heat pump efficiency drops. Typically, that’s when the heat pump shuts off and a backup electric coil switches on. New cold-climate heat pump technology may involve different types of refrigerants, defrost cycles to increase efficiency or other innovations.

Reed says the kinds of buildings best suited to showcase the cold-climate heat pumps are those without centralized air conditioning, but with through-wall air conditioners where the new products can be placed. “There is no cost to the buildings, but there’s a time commitment to work with NYSERDA,” Reed says. Buildings with oil-fired boilers and those facing emission penalties under Local Law 97 might also consider getting involved. “This would be one of the easier ways of transitioning from fossil fuel heat to electric heat,” Briguet says.

Buildings qualifying for the program — which builds on the Clean Heat for All Challenge, a $263 million product development initiative launched in 2021 to help multifamily buildings decarbonize — will have their heat pumps monitored for 12 months. While only some apartments in a qualifying building will have the new technology, the hope is the program will produce scalable solutions. “The goal is to have many other buildings follow in the footsteps of these demonstration partners with a cost-effective heat pump solution,” Reed says.