Energy Efficiency

Steam Air Conditioning Incentives

Is it time to start working on updating your chiller equipment? Or does your chiller need to be replaced?

Con Edison is offering selected customers incentives to install new steam chillers instead of electric chillers, replace existing steam chillers with newer, more efficient steam units, or rebuild their steam turbines instead of converting them to electric drivelines. In collaboration with the joint Con Edison – NYSERDA administered Demand Management Program, steam AC incentives have expanded to include all customers within the Con Edison steam system footprint. In addition, incentives are now included for single stage steam absorption chillers and customer-proposed custom steam chiller projects (for instance, a steam turbine rebuild). Please see below for summary program information and eligibility criteria. See the Program Guidelines for complete details.

Please note: Projects must be completed (fully operational) by June 1, 2016 to be eligible for the listed incentives. No exceptions. Projects completed after June 1, 2016 are subject to reduced or eliminated incentives.

Customer Benefits

  • Receive new, more efficient steam equipment at a reduced cost
  • Maintain your existing steam operations, maintenance staff, and O&M procedures
  • Help maintain electric reliability for your building and your neighborhood
  • Contribute to keeping electric and steam rates down

How the Program Works

  1. Customer submits a Program Application and required supporting materials about the proposed project
  2. A Con Edison representative reviews the Application and supporting materials to determine program eligibility. A Submission Date is assigned.
  3. Within 30 days of Application submission, Customer signs and submits the required Customer Agreement.
  4. If eligible, Con Edison schedules a pre-installation field visit to verify application information and supporting documents
  5. If field visit confirms eligibility and application information is correct, Con Edison issues an Acceptance Letter authorizing the Customer to order, purchase, and install the approved equipment. Customer is fully responsible for installation completion. If the project cannot be completed within 12 months of the Acceptance Letter date, a written extension must be submitted to Con Edison.
  6. After installation, Customer notifies Con Edison of project completion and submits any required new equipment information.
  7. Con Edison schedules a post-installation field visit to verify the equipment installed
  8. If post-installation field visit confirms acceptable installation and Customer Agreement is signed, Con Edison sends Customer their incentive payment.

To qualify for the Targeted Steam Air Conditioning Incentive Program, a signed Program Application and all required supporting materials must be received and approved by Con Edison prior to ordering, purchasing, or installing any equipment.

Please review the Program Guidelines for additional details. Links to these documents are provided on this page for your information and use. Any remaining questions or issues regarding eligibility and/or project timing should be directed to program staff via the above phone number or email.


Steam AC Equipment Type

Capacity Range

Incentive Level
($ per ton)

Incentive Limit

Steam Turbine Chiller

Less than or equal to 1700 tons


Up to 65% of the delivered equipment cost(3)*

Greater than 1700 tons


Double Stage Steam Absorption Chiller



Single Stage Steam Absorption Chiller



Custom Chiller Project**


Incentives shall be determined on a case-by-case basis. Con Edison shall review the required material to determine the incentive offering for each eligible project.

(1) All projects must be completed (fully operational) by June 1, 2016 to be eligible for the above incentives. No exceptions. Projects completed after June 1, 2016 are subject to reduced or eliminated incentives.

(2) A large project bonus incentive is available for any projects with a combined electric avoidance of 500kW or greater (about 900 tons or greater). A 10% bonus is applied to the above incentives for projects of 500kW to 999kW. A 15% bonus is applied to the above incentives for projects of 1000kW or greater. See Demand Management Program requirements for details.

(3) Delivered equipment cost represents the total invoiced cost associated with purchase of the chiller equipment. This cost includes all delivery, labor, equipment, and taxes associated with purchasing the chiller equipment and delivering it to the property. Any additional customer costs including but not limited to site preparation, rigging, demolition, and equipment removal are not to be included in the total invoiced cost.

**(4) Custom projects are subject to Con Edison approval for eligibility and incentive levels as set forth in the Program Guidelines.

Please see the “Chiller Incentives” document for additional information and requirements

Estimated incentive amount can be calculated based on your project specifics via the Steam AC Incentive Customer Worksheet. Please see the "Incentive Worksheet" link to download the spreadsheet.

A Maintenance Incentive is also available to customers who receive the upfront incentive.

Please see the “Maintenance Incentives” document for additional information and requirements.

Eligibility & Requirements

  • Customers must be replacing existing steam chillers with new steam chillers, replacing existing electric chillers with new steam chillers, installing new steam chillers in lieu of electric chillers in a major renovation or new construction, or proposing a custom steam chiller project subject to review and approval by Con Edison.
  • Customer required to contract for a minimum of 10-years of steam service.
  • Customers with a hybrid chiller configuration will be required to commit to demand response load reductions equivalent to the calculated load of the incentivized steam chiller equipment.
  • Engineering assessments are required for all custom projects as well as certain chiller locations and configurations.

Please see the "Eligibility Criteria" document for additional information and requirements.

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