New York State Clean Heat Program: Consolidated Edison Commercial and Industrial Guidelines July 1, 2021 - Con Edison

Clean Heat Program – Commercial and Industrial

 New York State Clean Heat Program:
 Consolidated Edison Commercial and
 Industrial Guidelines
 July 1, 2021

 This guide and the content herein serve as a reference to the requirements set forth as part of the NYS
 Clean Heat Statewide Program Manual. As the Program Manual may be amended, this guide defers to
 any changes made to the Statewide Program Manual until such time this guide is updated.

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Clean Heat Program – Commercial and Industrial

Table of Contents
1. Program Overview ............................................................................................................... 4
2. Program Process ................................................................................................................. 4
3. Eligibility Requirements ........................................................................................................ 6
 Customer & Site Eligibility ............................................................................................ 6
 Project Eligibility ........................................................................................................... 7
 General Participating Contractor Eligibility ................................................................... 7
4. Required Supporting Documentation ................................................................................... 9
 Scope of Work ............................................................................................................. 9
 Installation Costs ........................................................................................................10
 Cutsheet for proposed equipment ...............................................................................10
 Engineering Analysis ..................................................................................................10
 Design Heating and Cooling Load Calculations ..........................................................14
 Approved Department of Buildings Permit Submission ...............................................15
 Required Equipment Sizing.........................................................................................15
 Additional Requirements for New Construction ...........................................................17
5. Eligible Measures and Incentives ....................................................................................... 18
 General Equipment Installation and Verification ..........................................................20
 Air-Source Heat Pump Systems..................................................................................20
 Ground Source Heat Pumps (GSHP) ..........................................................................25
 Air-to-Water Heat Pump Water Heater ........................................................................28
 GSHP Desuperheater and Dedicated Domestic Hot Water (DHW) Water to Water Heat
 Pumps ...................................................................................................................................29
 Category 4A: Heat Pump Technology + Envelope Measures ......................................30
6. Special Circumstance ........................................................................................................ 31
 Early Replacement Projects ........................................................................................31
 Extended Life Projects ................................................................................................32
 Special Circumstance Savings Baselines ...................................................................33
7. Incentive Payments............................................................................................................ 33
8. Inspections......................................................................................................................... 33
9. Measurement & Verification (M&V) .................................................................................... 34
 Data Collection ...........................................................................................................34
 Project-Specific M&V ..................................................................................................35

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10. Field Assessments and Compliance .................................................................................. 36
 Participating Contractor Status ................................................................................37
11. Project Costs and Invoicing Requirements ......................................................................... 37
12. Appendix A – Glossary....................................................................................................... 39
13. Appendix B – Additional GHSP Requirements ................................................................... 40
 General Well/Borehole/Loop Field Requirements ....................................................40
 Closed-Loop Systems .............................................................................................41
 Closed Loop Antifreeze Protection Requirements ...................................................41
 Horizontal-Loop Systems ........................................................................................42
 Open-Loop Systems ................................................................................................42
 DX System ..............................................................................................................43
14. Appendix C – Guide to Calculating Sizing Ratios in the New York State Clean Heat
Program .................................................................................................................................... 44

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1. Program Overview
The New York State Clean Heat Program offers incentives to promote adoption of efficient
electric heat pump systems that are designed for use in space and water heating applications.
Heat pumps transfer heat from a source (or sink) including outdoor air, the ground, or a
mechanically heated or cooled fluid loop rather, than producing it. In the heating season, heat is
extracted from the heat source and supplied to the conditioned space. Conversely, during the
cooling season, heat is extracted from the conditioned space and rejected to the heat sink. A
reversing valve allows for a change of the refrigeration cycle from cooling to heating or vice
versa.

The following guidelines included here apply to Commercial & Industrial (C&I) customers and
the NYS Clean Heat Participating Contractors serving those customers who are applying to the
program. Eligible technologies include air-source heat pumps, heat pump water heaters and
ground source heat pumps. Custom projects that lead to electrification of fossil fuels may also
be eligible on a case-by-case basis. To get started, determine your project’s eligibility using
these guidelines, complete a short application, and speak with one of our Energy Advisors with
any questions about your project by emailing cleanheatcommercial@coned.com.

2. Program Process

1. VERIFY ELIGIBILITY
 • Confirm that the customer, site, proposed measures and contractors qualify for the
 program as specified in the listed Eligibility Requirements.
2. SUBMIT AN APPLICATION PACKAGE
 • Customers & Participating Contractors should submit applications via email to
 cleanheatcommercial@coned.com with a subject line of New C&I Clean Heat
 Application – [Applicant Name].
 • An application package is required for all clean heat projects and includes the items
 listed below.
 o When submitting your application package, please label these documents with the
 appropriate file names shown below:
 o Completed program application – Account name must match name of Con Edison
 account holder. (Filename: Application)
 o W-9 of the incentive recipient – The W9 submitted must match the name of the
 payee as indicated on the program application and must be latest version available
 on IRS website at the time of application to the program. (Filename: W9 Form)
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 o Scope of Work – A detailed scope of work that contains all equipment related to the
 proposed measure and includes a description of the existing system operation
 (Filename: Statement of Work)
 o Cutsheets for Proposed Equipment – Specific model(s) and product ratings being
 used in the project must be highlighted on the cutsheets before submission.
 (Filename: Cutsheet – [Make - Model #])
 o Cost Estimate for Proposed Work – Installation cost for the proposed measure,
 itemized to show material and labor costs for each measure. (Filename: Cost
 Estimate)
 o Load Calculations – Heating and Cooling Load Calculations showing that the heat
 pump system design and appliance selection has been performed in accordance
 with ANSI/ASHRAE/ACCA Standard 183-2007 (RA2017) or other code-approved
 equivalent computational procedure. (Filename: Load Calc)
 o Energy Savings Analysis – All calculations must be clear and transparent, utilizing
 standard engineering methodologies, including a listing of source values. (Filename:
 Calculations)
 o Other measure specific documentation – Other documentation listed in this
 program guide specific to the technology (custom projects) or required to confirm
 savings calculations. Filename: [Specify Document Type based on measure-specific
 requirements]
3. INITIAL TECHNICAL REVIEW
 Con Edison will review the application’s technical documentation for completeness to
 verify equipment technical eligibility, project incentive category, baseline and
 assumptions used in the energy analysis to determine preliminary savings and
 incentives for the project.
4. PRE-INSPECTION
 • Con Edison will pre-inspect the existing condition of your site. To be eligible for
 incentives work may not begin until this pre-inspection has been completed and a
 Notice to Proceed has been sent to you by Con Edison. For new construction, Con
 Edison may complete an inspection document review in place of an on-site pre-
 inspection.
 • Please clearly identify a contact person who may be present during the pre-inspection
 site visit.
5. ISSUE PRELIMINARY INCENTIVE OFFER LETTER (IOL) AND NOTICE TO PROCEED
 • You will receive a Preliminary IOL once your project has been reviewed and the Pre-
 inspection has been completed.
 • You will receive a Notice to Proceed which indicates project work may begin.
 • The incentive offer expires in 30 days if not returned to Con Edison.
6. INSTALL EQUIPMENT & SUBMIT COMPLETION PAPERWORK
 • The Notice to Proceed serves as indication that installation of project measures may
 begin.

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 • Submit your completion paperwork as soon as your project is completed. Completion
 paperwork should only be submitted after 100% of incentivized measures are installed.
 The completion paperwork includes:
 o Customer and Participating Contractor signed Customer Acknowledgement Form.
 Only costs directly related to incentivized measures should be included on the
 completion form.
 o Final invoices and receipts must be submitted and broken out by product. See the
 Project Costs and Invoicing Requirements section of this manual for additional
 details.
 o Approved Department of Building Permit Submission including EN-drawings and
 energy analysis (COMcheck, Tabular, etc)
 o Revised load calculations (required only when revisions were made to the original
 load calculations)
7. POST INSPECTION
 Con Edison will inspect the new condition of the site to confirm that all work was installed
 in accordance with the scope of work provided with the initial project application.
8. FINAL TECHNICAL REVIEW
 Con Edison will review the completion paperwork and findings from the post-inspection,
 revising the energy savings calculations, as necessary, to reflect as-built conditions and
 as-installed costs, and determine the final project savings and incentive.
9. RECEIVE INCENTIVE PAYMENT
 Once your energy savings and incentives are finalized by the Program team, an
 incentive check will be mailed to the payee as designated on project documents.
10. QUALITY ASSURANCE/QUALITY CONTROL (QA/QC) – CONTRACTOR ASSESSMENT
 A QA/QC process will be utilized to assess the performance of Participating Contractors
 in complying with program rules as described in the New York State (NYS) Clean Heat
 Implementation Plan and Program Manual.

3. Eligibility Requirements
 Customer & Site Eligibility
 • Con Edison Commercial customers over 100 kW average peak demand on a rolling 12-
 month basis are eligible for C&I Clean Heat incentives, excluding Multifamily buildings.
 Commercial customers between 100-300 kW may also choose to participate with Con
 Edison through the Small to Medium Business (SMB) track of the NYS Clean Heat
 Program.
 • Customer must not have applied for or received an incentive from the New York State
 Energy Research and Development Authority (NYSERDA), Con Edison or another utility
 for the same project.
 • The Con Edison customer of record listed on the application is a directly metered
 commercial or industrial customer.
 • Equipment must be installed after customer allows for a pre-installation inspection, signs
 and submits a signed preliminary IOL from Con Edison, and receives a Notice to
 Proceed from Con Edison.

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 • Heat pump projects are eligible for incentives no matter which heating fuel (e.g., fuel oil,
 natural gas, propane, biomass, or electricity) they are either transitioning from in the
 case of retrofits or declining to install in the case of new construction.

 Project Eligibility
All projects submitted to the Clean Heat program must follow the project process detailed in the
Program Process above.

 Installation Completion Timeline
Projects for which a Notice to Proceed has been issued must be completed within the time
specified in Table 1 below to be eligible for program incentives:

Table 1 - Installation Timelines for Approved Projects
 Category Existing Buildings New Construction
 1, 2, 3, 5, 6, 7, 8, 9 12 months 24 months
 4, 4A 24 months 36 months

In the event of any delays, an extension request must be submitted via email. Extension
requests may be granted or denied at Con Edison’s discretion.

 General Participating Contractor Eligibility
All Contractors who seek to participate in the Con Edison C&I track of the NYS Clean Heat
Program must be approved Participating Contractors and meet the following requirements:

 • Complete a NYS Participating Contractor Application to become a Participating
 Contractor in the NYS Clean Heat Participating Contractor Network
 • Complete the Con Edison Clean Heat Participating Contractor Agreement
 • Provide updated IRS W9 form and Certificate of Insurance policy (minimum $1M)
 • Adhere to the participating contractor participation requirements as written in the Clean
 Heat Participating Contractor Agreement
 • Adhere to program requirements
 • Maintain an approved participating contractor status

Only Participating Contractors (PC) in good standing, consistent with the PC participation
requirements, will be allowed to receive incentive payments.

 Air Source Heat Pump Contractor Eligibility
Air Source Heat Pump contractors seeking to participate in the NYS Clean Heat Program can
apply as either Air Source Heat Pump Installers or Air Source Heat Pump Designers. ASHP
Contractors are required to review and use the NEEP Guide to Sizing and Selecting Air-Source
Heat Pumps in Cold Climates.

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Air Source Heat Pump Installers MUST provide, in addition to all general requirements:

 • A copy of the U.S. Environmental Protection Agency Section 608 Technician
 Certification that is appropriate for the size of the system being installed.
 • An ASHP Manufacturer-sponsored Cold Climate Air Source Heat Pump Sizing and
 Design Training Certificate or comparable proof of training completion documentation1

Air Source Heat Pump Designers MUST provide, in addition to all general requirements:

 • An active NYS Professional Engineering license OR
 • An active NYS Registered Architect license

 Ground Source Heat Pump Contractor Eligibility
3.3.2.1. GSHP Installers
All Ground Source Heat Pump installers who participate in the NYS Clean Heat Program must
provide, in addition to all general requirements:
 • A copy of a current and in good standing International Ground Source Heat Pump
 Association (IGSHPA) accredited installer certificate
3.3.2.2. GSHP Designers
All GSHP designers who participate in the NYS Clean Heat Program and qualify for Category 3
incentives, in addition to all general requirements, must provide:
 • A copy of a current and in good standing International Ground Source Heat Pump
 Association (IGSHPA) accredited installer certificate or;
 • An active Certified GeoExchange Designer (CGD) certificate from the Association of
 Energy Engineers (AEE)

GSHP designers seeking to qualify for Category 4 incentives must also provide:
 • An active Certified GeoExchange Designer (CGD) certificate from the Association of
 Energy Engineers (AEE)
 • An active NYS Professional Engineering license
 • An active NYS Registered Architect license

3.3.2.3. Vertical Loop Field Drillers
Drillers who intend to participate in the NYS Clean Heat Program are ineligible to receive
incentives but must provide, in addition to all general requirements:
 • Active registration (in good standing) and certification for open-loop geothermal well
 drilling by the NYS Department of Environmental Conservation
 • National Ground Water Association Certified Vertical Closed-Loop Driller (CVCLD)
 certificate

1Documentation of the Cold Climate Air Source Heat Pump Sizing and Design Training Certificate is
optional up to January 1, 2022. On or after January 1, 2022 this documentation is Mandatory.
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3.3.2.4. Direct Exchange (DX)
Since there are currently no available industry trainings or certifications, designers, installers
and drillers seeking to become Participating Contractors must submit, in addition to all general
requirements:

 • A training certificate from a DX Ground Source Heat Pump Manufacturer

 Heat Pump Water Heater (HPWH) Contractor Eligibility
Contractors installing HPWH are not required to submit a NYS PC Application or PC Agreement
to be eligible to receive incentives, however the contractor is required to be a NYS Licensed
Contractor. Site Owners may install their own HPWH and apply for incentives independently.

4. Required Supporting Documentation
The following is the minimum required documentation for all eligible Clean Heat Projects and
should be attached with every completed Clean Heat Application. These guidelines are not a
comprehensive listing of requirements for custom measures and may be amended as applicable
to conform with each project. Applicants shall refer to this Clean Heat Guide for all requirements
related to heat pump installations and the related categories.

 Scope of Work
A detailed scope of work that contains all equipment related to the proposed measure and
includes a description of the existing system operation (if applicable).

 • Provide description of existing heating and cooling systems, or in the case of new
 construction, counterfactual heating and cooling baseline.
 • Describe extent of work and indicate whether scope involves new construction or
 upgrades at an existing facility (retrofit or substantial renovation). Description should
 specify building type and the floors or building areas impacted by project. Include
 whether any other measures are being installed to contribute to additional heating or
 cooling relief, such as weatherization, sealing, insulation, etc.
 • Specify type of heat pump technology being proposed for installation, quantity of new
 units, and proposed system application (e.g. domestic hot water heating, space heating
 and cooling). Specify whether equipment is ducted or ductless.
 • Provide design capacity, efficiencies, and proposed sequence of operations for new heat
 pump installation.
 • Specify what percentage of the design heating/cooling load the new heat pumps are
 proposed to accommodate. See Required Equipment Sizing for details regarding
 equipment sizing.
 • Specify whether supplemental heating, via either an existing heating system or new
 heating system, is required to accommodate the design heating load. If a supplemental
 heating system is required, additional justification and information may be required (refer
 to Section 4.7.3).

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 • For New Construction: Specify which compliance pathway (i.e. Prescriptive or
 Performance Path) design follows to demonstrate compliance with the applicable 2020
 energy code and whether design trade-offs have been taken.

 Installation Costs
Installation costs as provided to the customer, including labor and materials, for the proposed
heat pump scope. Labor and material costs shall be presented separately, and costs shall be
limited to the equipment cost and labor cost. Other costs such as taxes, internal labor costs,
shipping, administrative costs, or similar costs will not be included with total project cost when
calculating incentive caps.

 • Initial Review: Applicants shall submit a cost estimate for the proposed work with its
 initial application.
 • Final Review: Applicants shall submit a final invoice, documenting actual material and
 labor costs for the installation, with its completion paperwork.

See the Project Costs and Invoicing Requirements section of this manual for additional details.

 Cutsheet for proposed equipment
Specific model(s) and product ratings being used in the project must be submitted with the
project application to properly determine equipment eligibility. Model numbers must be
highlighted on the cutsheets before submission to the program.

 Engineering Analysis
A detailed engineering analysis showing energy savings related to the installation of the clean
heat measures must be submitted as part of the application package. All calculations must be
clear and transparent utilizing standard engineering methodologies, including a listing of source
values. Energy Savings Methodologies for the relevant technology categories are listed below.

 Savings Methodology for Categories 1, 2, 3, 5, 7 and 8
Participating Contractors shall rely on The New York Standard Approach for Estimating
Energy Savings from Energy Efficiency Programs - Residential, Multi-Family, and
Commercial/Industrial, known as the Technical Resource Manual (“NYS TRM”) and best
practices to estimate energy savings for heat pump installations.2 For multiple-unit
configurations not covered by the TRM, or for larger or custom systems, the Participating
Contractor will perform custom analyses to determine savings, consistent with the approaches
outlined for custom measures in the TRM. Refer to Section 4.4.2 for more details concerning the
requirements for the custom category engineering savings analysis.

2The New York Standard Approach for Estimating Energy Savings from Energy Efficiency Programs -
Residential, Multi-Family, and Commercial/Industrial, known as the Technical Resource Manual (TRM),
https://www3.dps.ny.gov/W/PSCWeb.nsf/All/72C23DECFF52920A85257F1100671BDD

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 Engineering Savings Analysis Requirements for Categories 4, 4A and 6
Each application package must include a detailed engineering analysis showing energy savings
in net MMBtu related to the project measures. Savings may be calculated using the following
approaches:

 • Statewide Clean Heat Program Bin Analysis Savings Calculator
 • Engineering Modeling
 • Temperature Bin Analysis

All calculations must be clear and transparent utilizing standard engineering methodologies,
including a listing of source values. Energy savings analyses may be accepted in the form of an
unlocked Microsoft Excel spreadsheet (PDFs not accepted) showing all equations, parameters,
formulas, and assumptions used to calculate savings.

 Statewide Clean Heat Program Bin Analysis Savings Calculator
The Statewide Clean Heat Program Bin Analysis Savings Calculator (Clean Heat Calculator) is
an Excel based tool that has been developed to assist Participating Contractors and Customers
applying to the New York State Clean Heat Program with calculating energy savings and
incentives for the following heat pump technologies:

 • NEEP listed Cold climate single package air source heat pumps
 • NEEP listed Cold climate air source mini-splits
 • Large Unitary Air-to-Air Heat Pumps
 • Air Source Variable Refrigerant Flow (VRF) Heat Pumps
 • Large Closed Ground Loop Heat (Ground Source) Pumps with centralized ground loop
 pumping
The Clean Heat Calculator should be used as the default method to calculate energy savings for
the above-mentioned technologies if one or both of the following statements are true:

 • Project involves installation of one of the above-mentioned technology types and
 qualifies for category 4 incentives.
 • Project proposes to install a mix of the above heat pump technologies. For example,
 project scope includes installation of both NEEP listed mini-splits and Air Source VRFs.

Under certain circumstances, applicants may bypass using this calculator, opting instead to
calculate savings using their own custom approach.

The Participating Contractor shall refer to the Clean Heat Calculator User Guide for more
detailed instructions on how and when to use the Statewide Clean Heat Bin Analysis Savings
Calculator.

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 Modeling Approach
Whole building energy models shall be prepared using one of the following approved modeling
software and shall be simulated following one of the compliance paths prescribed in ASHRAE
Standard 90.1:

 • DOE2.1E
 • eQuest
 • EnergyPlus
 • Trane TRACE 700
 • OpenStudio

The model shall be developed using a “Stacked” parametric approach, where energy savings
are modeled by starting with the proposed design model, and gradually transforming it into the
minimally code compliant baseline design by subtracting the Energy Efficiency Measures
(EEMs) one-by-one in the following order:

 • HVAC measure(s)
 • Base load measure(s) such as lighting, process loads, plug loads, etc.
 • Envelope measure(s)
 • Non-interactive measures such as service water heating

If there are several EEMs of the same type, for example several HVAC EEMs, the order in
which they are modeled relative to each other is not prescribed to allow flexibility in supporting
the specific project circumstances and may be determined by the Modeling Entity performing
the modeling based on communications with the customer. For example, if a design includes a
high efficiency make-up air unit, and energy recovery is considered as a design alternative, the
energy recovery EEM should be modeled (subtracted from the proposed design) first, to show
the added energy savings for this option, with the unit efficiency EEM modeled (subtracted)
second.

With the stacked approach, the difference between the sum of EEM savings and the total
savings of the proposed design relative to the baseline is attributed entirely to the impact of
components that differ between the baseline and proposed models but are not included in any
EEM.

4.4.4.1. Modeling Submittals
The simulation reports with the following information for the baseline, proposed design, and
each energy measure model must be included in the report appendix:

 • Monthly Energy End-use Summary (such as PS-E: Energy End-Use Summary for All
 Meters)
 • Overall annual building energy consumption including all fuels and meters (such as
 BEPS: Building Energy Performance Summary and BEPU: Building Utility Performance)
 • Energy cost summary (such as ES-D: Energy Cost Summary)
 • Information on hours when space/system loads are not met (such as BEPS/BEPU)
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 • System design parameters report (SV-A: System Design Parameters for HVAC)

 Establishing Baselines
Establishing the equipment or system baseline is a necessary step in calculating energy savings
for any project. This section defines the types of baselines used by the Program and the general
requirements for each baseline type.

4.4.5.1. Baseline Equipment Types
Equipment baselines are defined as the type of equipment that would have been installed
without the influence of the program. In other words, the savings baseline should represent
customer choice in absence of the Program, not optimal behavior or policy goals.

Existing Facilities
For existing facilities, the baseline equipment type defaults to the existing equipment type
installed. As an example, if an existing building is served by an oil-fired steam boiler, then this
equipment type shall serve as the baseline heating equipment type. Refer to Section 4.8.2
below for how to select efficiencies for the selected baseline equipment.

The customer may also choose to select a baseline in accordance with contemporary
construction practice for the area and based on an evaluation of the technology’s cost
effectiveness. If a baseline that differs from the existing system is selected, the applicant shall
provide a separate analysis supporting its selection, showing that the baseline chosen aligns
with contemporary construction standards and is cost effective from both an installation and life
cycle standpoint.

New Construction
For all eligible new construction projects in the program, the default heating fuel type has been
set to natural gas. This default heating baseline may be overridden if the applicant provides
documentation indicating that new natural gas service is not available, or access is not
economical in their area.

4.4.5.2. Baseline Efficiencies (except Category 4A)
Baseline system efficiencies for all projects except Category 4A shall be based on minimally
code compliant equipment in accordance with the latest Energy Conservation Code of New
York State (ECCCNYS). There are three exceptions to this requirement:

 1. Project qualifies as a Special Circumstance Replacement in accordance with the NYS
 TRM3 requirements – i.e. Early Replacement or Extended Life. For Special
 Circumstance Replacements, the existing equipment efficiency shall be used for the
 baseline condition in accordance with the NYS TRM two step analysis method.
 2. Projects involving new construction whose design demonstrates compliance with
 Section 406 of the 2020 ECCCNYS/NYCECC by providing more efficient HVAC

3The New York State TRM can be found on the Department of Public Service website here:
https://www3.dps.ny.gov/W/PSCWeb.nsf/All/72C23DECFF52920A85257F1100671BDD?OpenDocument
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 performance shall set the baseline system efficiencies to exceed the minimum code
 efficiency requirements by 10%.
 3. Projects that plan to submit a whole building energy simulation for the purposes of
 reporting energy savings shall set the baseline system to comply with one of the
 following compliance approaches prescribed in ASHRAE 90.1-2016 (as amended by the
 ECCCNYS):
 a. Appendix G - Performance Rating Method OR
 b. Section 11 – Energy Cost Budget Method.

4.4.5.3. Category 4A Baseline Requirements
Existing Facilities
The energy savings from the packaged envelope upgrades and heat pump installations are
based on the existing baseline. The thermal performance of the building envelope and the
efficiency of the HVAC system should reflect the current conditions found at the project site. The
applicant should provide a separate set of analyses for the envelope upgrades and heat pumps.
Documentation clearly describing the existing building envelope as well as the age and
performance data for the existing HVAC system, such as cutsheets stipulating existing
efficiency, boiler combustion tests, etc. shall be submitted for projects at existing facilities
pursuing Category 4A incentives.

The heat pump analysis should calculate incremental energy savings related to the heat pump
equipment based on the upgraded building envelope conditions.

New Construction
For all eligible new construction projects in the program, the baseline is code compliant
equipment in accordance with the latest Energy Conservation Construction Code of New York
State (ECCCNYS).

The default building envelope baseline shall be set to the ECCCNYS code minimum compliant
performance. Upon project completion, the applicant should provide a DOB or Agency Having
Jurisdiction (AHJ) – approved set to confirm the building envelope baseline.

The default heating fuel type has been set to natural gas at the minimum ECCCNYS code
efficiency. This default heating baseline may be overridden if the applicant provides
documentation indicating that new natural gas service is not available, or access is not
economical in their area.

 Design Heating and Cooling Load Calculations
All heat pump systems shall be sized in compliance with applicable state and municipal codes.
Applicants must provide documentation of heat pump system design and appliance selection
based on design heating and cooling loads, as calculated using a code-approved methodology
appropriate for the building type as outlined in Required Equipment Sizing.

Documentation related to this requirement should be submitted in PDF format, unless otherwise
requested.

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If the design heating and cooling load calculations are revised after issuance of the Notice To
Proceed by the Program, the Applicant shall submit the updated load calculations with its
completion documentation at the Final Technical Review. The Program will review the new
calculations and determine if an adjustment to the project savings is necessary.

 Approved Department of Buildings Permit Submission
The final approved Department of Buildings permit submission including EN-drawings and
energy analysis (COMcheck, tabular analysis) must be submitted along with your completion
paperwork.

 Required Equipment Sizing
To be eligible for incentives, all heat pump systems must be sized in compliance with applicable
state and municipal code.

 Design Load Calculations
Calculation of the Design Heating Load (DHL) shall be at the 99% dry bulb heating design
temperature for the most relevant ASHRAE 2017 location. Calculation of the Design Cooling
Load (DCL) shall be at the 1% dry bulb cooling design temperature for the same ASHRAE
location. Refer to the Table below for ASHRAE 2017 locations within Con Edison Service
Territory.

Table 2 – AHSRAE (2017) Dry Bulb Heating & Cooling Design Temperatures
 2017 ASHRAE
 City Name
 99% Heating Dry Bulb (℉) 1% Cooling Dry Bulb (℉)
 New York City – Central Park 17.5 88.0
 New York City - JFK 18.0 86.6
 New York City - LaGuardia 18.4 89.6
 White Plains 13.5 86.4

Load calculations performed at dry bulb temperatures different from those stated above will be
accepted if the temperatures are within ± 5 ℉.

 Equipment Sizing and Selection
Equipment installed in commercial buildings must be sized in accordance with heating and
cooling load calculations following ANSI /ASHRAE /ACCA Standard 183-2007 (RA2017) or
other NYS/NYC Energy Conservation code-approved equivalent computational procedure. The
output capacity of heating and cooling equipment shall be not greater than that of the smallest
available equipment size that exceeds the calculated loads. A single piece of equipment
providing both heating and cooling (such as a heat pump or heat pump system) shall satisfy this
provision for one function with the capacity for the other function as small as possible, within
available equipment options.

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 Load Satisfaction Criteria
All heat pump systems, except for those qualifying for Category 1 ccASHP: Partial Load Heating
shall be designed and sized for full load heating. Category 4: Custom Space Heating
Applications and Category 6: Custom Hot Water Heating Applications projects may also be
considered for partial load applications if justification is provided. Under the NYS Clean Heat
Program, a full load heat pump system is defined as a system installed as a building’s primary
heating source, with a total system heating capacity that satisfies at least 90% of the BHL at
design conditions, in accordance with applicable code. The following are examples of heat
pump systems qualifying full load heating:

 • Full Load Heating Example 1: Heat Pump system provides 110% of the heating load
 for an entire commercial building. Since system provides more than 90% of the heating
 load for the building, it qualifies as a full load heating system.
 • Full Load Heating Example 2: Heat Pump system is an independent heating system
 that satisfies 100% of the heating load of served 3 floors of a 10-floor commercial
 building. The remaining 7 floors will be heated using the existing boilers. In this case,
 the program will consider the 3 floors in the scope of the project. Since the heat pumps
 satisfy more than 90% of the heating load for the areas it serves, they qualify as full load
 heating systems. The participating contractor has submitted justification for completing
 three of ten floors.

For systems that have sizing ratios substantially greater than 120% DHL and 115% DCL, the
Program reserves the right to request additional justification or documentation.

A partial load heating system is defined as a prioritized, first stage, heat pump system installed
alongside a supplemental, second stage, heating system for the purpose of providing heating.
The supplemental heating system may be either the existing system or a new system. A partial
load system has a total system heating capacity that satisfies

Clean Heat Program – Commercial and Industrial

 Additional Requirements for New Construction
 New Construction Eligibility
New Construction projects installing heat pump technologies complying with New York State
Clean Heat Program requirements are eligible to receive incentives. Incentives will be
applicable to the portions of the scope of work relating to heat pump installations.

Eligibility for new construction projects using trade-offs will be determined on a case-by-case
basis.

 Energy Code Compliance
New construction projects must demonstrate compliance with the 2020 applicable Energy Code
in one of the following ways:

 • Prescriptive: Each discrete component complies with specific requirements
 • Component Performance Alternative: Prescriptive approach that allows trade-offs
 between some components (some can be below code if others are above)
 • Total Building Performance: Using an energy model, show the entire building
 compliance with code; With this method, performance trade-offs are allowed, meaning
 that some components in the proposed design may be less efficient than the minimally
 code compliant like component in the baseline. In these instances, a trade-off must be
 made to “make up” for a component that does not comply with code. For example, a
 building owner might choose to install a larger, more energy efficient heat pump system
 to “make up” for putting in more window area than allowed by the code.

If trade-offs are taken, provide a side-by-side comparison table between proposed and baseline
identifying the areas where trade-offs are made (i.e. building or system elements that do not
comply with the prescriptive requirements of the code, elements exceeding requirements, and
building elements or systems modeled to provide additional energy savings to offset the non-
complying elements).

 New Construction Energy Analysis
New construction projects that follow a prescriptive approach, preparing either a COMcheck or
Tabular analysis to demonstrate energy code compliance, may opt to submit an energy analysis
using excel calculations or a whole building energy model per methodology outlined in the
modeling approach.

When a “Total Building Performance” compliance path is followed, the applicant shall submit a
whole building energy model for review. Excel calculations will not be accepted.

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5. Eligible Measures and Incentives
Eligible equipment is grouped into the following major categories:

 1. ASHPs for space heating applications, including:
 • Cold Climate Air-to-Air Mini-Split Heat Pumps (MSHPs);
 • Cold Climate Air-to-Air Single Packaged Heat Pumps
 • Air-to-Air Large Commercial Unitary heat pumps (single packaged or split
 system)
 • Air Source Variable Refrigerant Flow heat pumps; and
 • Packaged Terminal Heat Pumps;
 2. GSHPs for space and water heating applications; and
 3. HPWHs for domestic and service water heating applications, including:
 • Air-to-Water HPWHs
 • Ground Source Heat Pump Desuperheaters
 • Dedicated Water-to-Water Heat Pump added to Ground Loop

More specifically, the Program offers ten (10) categories in which applicants may apply for
Program incentives. Each category relates to a specific type of heat pump technology and
application as detailed in Table 5.

For projects installed at new construction sites, all components installed as part of an approved
ASHP, GSHP and HPWH system must be new. For projects installed at existing sites, the heat
pumps must be new and any system subcomponent or subassembly such as controls or
ductwork that is replaced should be replaced by a new subcomponent or subassembly. The use
of used or refurbished equipment, including retrofitting of existing air handlers with heat pump
coils, is not permitted under the program.

Only heat pump systems designed to provide both heating and cooling are eligible for incentives
under the Program. Heat pumps used for space cooling only are ineligible.

Other Custom technologies may be reviewed and their eligibility for inclusion into the Program
will be determined on a case-by-case basis if the following criteria is met:

 1. Fossil fuel (heating oil, natural gas, steam generated by fossil fuel, etc.) energy
 consumption must be reduced by the new electric technology or application
 2. The new electric technology or application:
 • Must not increase the overall annual site energy consumption
 • Shall be market ready and can meet or exceed applicable minimum efficiency
 specifications

All measures and incentives listed herein are subject to change at the discretion of Con Edison
without prior written notification. Projects that do not meet the requirements in this Program
Guidelines are not eligible to receive incentives.

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Table 3 - Categories of Measures and Applicable Incentives

 Application Category Description Eligible Technologies Incentive Unit
 $/outdoor
 ccASHP: Partial
 1 Central ccASHP, MSHPs $500 condenser
 Load Heating
 unit

 ccASHP: Full $/10,000
 2 Central ccASHP, MSHPs $2,000 4
 Load Heating Btu/h

 GSHP: Full $/10,000
 3 GSHPs $5,000 4
 Space Heating

 Load Heating Btu/h
 Central ccASHPs, MSHPs,
 $/MMBTU
 Custom Space Commercial Unitary
 of annual
 4 Heating Systems/Large Commercial $200
 energy
 Applications ASHPs, Air-Source VRFs,
 savings
 GSHPs, and PTHPs
 Window Replacements,
 Window Film, Wall Insulation,
 $/MMBTU
 Continuous Insulation,
 Heat Pump of annual
 4A Window Walls, Curtain Walls, $400
 Plus Envelope energy
 Exterior Façade, Air Leakage
 savings
 Sealing, Air Barrier Continuity,
 Roof Insulation
 Heat Pump
 Air-to-Water HPWHs (120
 gallons of tank capacity), $/MMBTU
 Custom Water
 Water Heating

 Dedicated DHW WWHP of annual
 6 Heating $200
 (>120 gallons of tank energy
 Applications
 capacity) added to ground savings
 loop
 GSHP Optional component to GSHP
 7 $150 $/Unit
 Desuperheater systems
 Dedicated DHW WWHP
 Dedicated (

Clean Heat Program – Commercial and Industrial

Effective July 1, 2021, there is an additional 30% kicker incentive for all eligible Heat Pump
Technologies excluding those that qualify for Category 1 and Category 9 installed within
designated Westchester natural gas moratorium5.

 General Equipment Installation and Verification
Systems and system components must be installed in accordance with manufacturer
specifications and installation requirements, and in compliance with all applicable laws,
regulations, codes, licensing and permit requirements including, but not limited to, the New York
State Environmental Quality Review, the Statewide Uniform Fire Prevention and Building Code
and State Energy Conservation Construction Code, the National Electric Code, Fire Codes and
all applicable State, city, town, or local ordinances or permit requirements.

 Air-Source Heat Pump Systems
Air-source heat pumps transfer heat between the inside of a building and the outside air. A heat
pump's refrigeration system consists of a compressor and two coils made of copper tubing (one
inside and one outside), which are surrounded by aluminum fins to aid heat transfer. In the
heating mode, liquid refrigerant in the outside coils extracts heat from the air and evaporates
into a gas. The inside coils release heat from the refrigerant as it condenses back into a liquid. A
reversing valve, near the compressor, can change the direction of the refrigerant flow for cooling
as well as for defrosting the outside coils in winter.

To be eligible for an incentive under the NYS Clean Heat Program, ASHP systems must either
be listed on the NEEP Product List6 or meet the criteria established in this Program Guide and
the NYS Clean Heat Program Manual.

There are several categories of ASHPs eligible for the Statewide Heat Pump Program,
including:

 1. Central ccASHPs that are either identified on the NEEP Product List or that meet NEEP
 cold climate air source heat pump specification requirements.
 2. Ductless or Partially Ducted Mini-Split Heat Pumps (MSHP) that are either identified on
 the NEEP Product List or that meet NEEP cold climate air source heat pump
 specification requirements. These include “single-head” (one indoor air handler per
 outdoor compressor) and “multi-head” or “multi-split” (more than one indoor air handler
 per outdoor compressor) units
 3. Commercial Unitary (i.e., Large Commercial) ASHPs (Split or Single Package)
 4. Air Source Variable Refrigerant Flow (VRF) Heat Pump Systems
 5. Packaged Terminal Heat Pumps (PTHP)

5 https://www.coned.com/en/save-money/convert-to-natural-gas/westchester-natural-gas-
moratorium/about-the-westchester-natural-gas-moratorium
6 The current specification and listed eligible units are available at https://neep.org/ASHP-Specification.

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 Central ccASHP
Central Air Source Heat Pumps have cooling capacities less than 65,000 Btu/h and are not
contained within the same cabinet as a furnace with rated capacity greater than 225,000 Btu/h.7
These units are typically sized to provide heating and cooling to the whole building through a
central duct distribution system and are tested under AHRI standard 210/240. They are a retrofit
solution for existing small businesses that are replacing central air conditioners, which were
installed in conjunction with a separate heating system (typically a fossil fuel or electric furnace)
that shares the same duct distribution system.

5.2.1.1. Equipment Eligibility
Central Air Source Heat Pumps may qualify for one of the following categories pending the
project details:

 • Category 1 ccASHP: Partial Load Heating,
 • Category 2 ccASHP: Full Load Heating, or
 • Category 4 Custom Space Heating Applications

To be eligible for a Category 1 Partial Load Heating or Category 2 Full Load Heating incentive,
the Central ASHP system’s total heating capacity must be

Clean Heat Program – Commercial and Industrial

5.2.1.3. Central ccASHP Installation
The PC shall verify and document the system’s operation with the equipment manufacturer’s
specifications via one or both of the following methods:

 • Direct measurement of the system airflow across a dry indoor heat exchanger coil in
 CFM/ton; OR
 • Measurement of the total external static pressure drop (air handler unit entering pressure
 minus the air handler unit exiting pressure) in Pascals or inches of water column.
 Measure and compare to cutsheets and specs.

Based on manufacturers installation manuals, outdoor units shall be installed above the local
snow line.

 Cold Climate MSHP (ccMSHP)
Cold climate MSHPs are ASHPs with cooling capacities less than 65,000 btu/h that can
circulate refrigerant between an outdoor unit containing a variable capacity compressor and one
or more indoor air handlers and are tested under AHRI standard 210/240.

5.2.2.1. Equipment Eligibility
Cold climate MSHPs may qualify for one of the following categories pending the project details:

 • Category 1 ccASHP: Partial Load Heating,
 • Category 2 ccASHP: Full Load Heating, or
 • Category 4 Custom Space Heating Applications

To be eligible for a Category 1: Partial Load Heating or Category 2 Full Load Heating incentive,
cold climate MSHP systems must have a total heating capacity of 300,000 Btu/h or consist of equipment that are
tested under AHRI test standard 210/240, comply with the NEEP cold climate air-source heat
pumps specifications, but are not NEEP listed, may qualify for incentives under Category 4
Custom Space Heating Applications.

5.2.2.2. Equipment Sizing
To determine which category the proposed system is eligible for, the applicant must size and
select equipment based on Required Equipment Sizing.

To be eligible for the Category 2 ccASHP: Full Load Heating and Category 4 Custom Space
Heating Applications incentives, the system must satisfy at least 90% of the design heating
load. Systems that satisfy less than 90% of design heating load, may qualify for Category 1
ccASHP: Partial Load Heating incentives.

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5.2.2.3. Equipment Installation
Based on manufacturers installation manuals, outdoor units shall be installed above the local
snow line.

 Commercial Unitary Systems/Large Commercial ASHPs
Large commercial ASHPs are a retrofit solution for commercial buildings that currently have
rooftop or central air conditioners, which were often installed in conjunction with a separate
heating system. These systems consist of individual appliances that are powered by three-
phase electricity, have rated cooling capacity >65,000 btu/h and are tested under AHRI
340/360.

5.2.3.1. Equipment Eligibility
To be eligible for Category 4 Custom Space Heating Applications incentives, large ASHP
Systems must meet the following criteria:

 • Individual heat pump appliances tested under AHRI standard 340/360, and
 • Individual heat pump appliances are equipped with multi-speed or variable speed
 compressors
 • Large commercial ASHPs with cooling capacities from 65,000 Btu/h up to 240,000 Btu/h,
 must meet ENERGY STAR® Key Product Criteria for Light Commercial HVAC
 equipment.
 • Large commercial ASHPs with cooling capacities >240,000 Btu/h, must exceed local
 energy code efficiency requirements.

5.2.3.2. Equipment Sizing
The PC must document that systems are sized according to the Required Equipment Sizing.

 • If the DHL is greater than the DCL, the total system heating capacity must satisfy at least
 90% of the DHL, which is consistent with the requirement to satisfy DHL under relevant
 municipal or state code.
 • If the DCL is greater than the DHL, the system must be sized to satisfy the full DCL, as
 required by relevant municipal or state code.

5.2.3.3. Equipment Installation
Based upon best practices and manufacturers installation manuals, outdoor units should be
installed above the local snow line.

 Air Source Variable Refrigerant Flow (VRF) Heat Pump Systems
Air Source Variable Refrigerant Flow systems are an engineered direct exchange (DX) multi-
split system that circulate refrigerant between a variable capacity compressor and multiple
indoor air handlers, each capable of individual zone temperature control. They provide some
major advantages, including the ability for heat recovery that allows them to heat and cool
different zones simultaneously; optimized performance across a range of zonal comfort levels
and part load conditions; and the avoidance of ductwork or the need for secondary circulation

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fluids such as chilled or heated water. Because they circulate refrigerant and allow for a
separate outside air ventilation system, they require less ceiling space than conventional
systems. These systems are tested under AHRI 1230.

5.2.4.1. Equipment Eligibility
To be eligible for Category 4 Custom Space Heating Applications incentives:

 • Individual heat pump appliances tested under AHRI standard 1230
 • VRFs with cooling capacities from 65,000 Btu/h up to 240,000 Btu/h must meet
 ENERGY STAR® Key Product Criteria for Light Commercial HVAC equipment.
 • VRFs with cooling capacities >240,000 Btu/h must exceed local energy code efficiency
 requirements.

It is noted that NEEP is currently in the process of drafting specifications for cold climate VRFs.
The above eligibility requirements are subject to change to align with the NEEP cold climate
VRF specification upon its publication

5.2.4.2. Equipment Sizing
The PC must document that systems are sized according to the Required Equipment Sizing.

 • If the DHL is greater than the DCL, the total system heating capacity must satisfy at least
 90% of the DHL, which is consistent with the requirement to satisfy DHL under relevant
 municipal or state code.
 • If the DCL is greater than the DHL, the system must be sized to satisfy the full DCL, as
 required by relevant municipal or state code.

5.2.4.3. Equipment Installation
In addition, the VRF systems must comply with ASHRAE Standard 15-2019 Safety Standard for
Refrigeration Systems and Designation and Classification of Refrigerants.

 Packaged Terminal Heat Pumps
A packaged terminal heat pump (PTHP) is a wall sleeve and a separate un-encased
combination of heating and cooling assemblies specified by the builder and intended for
mounting through the wall, and that is industrial equipment. It includes a prime source of
refrigeration, separable outdoor louvers, forced ventilation, and heating availability by builder's
choice of hot water, steam, or electricity. It utilizes reverse cycle refrigeration as its prime heat
source, that has a supplementary heat source available, with the choice of hot water, steam, or
electric resistant heat, and that is industrial equipment. These systems are tested under AHRI
standard 310/380.

5.2.5.1. Equipment Eligibility
To be eligible for Category 4: Custom Space Heating Applications incentives, PTHPs must meet
or exceed the following criteria:

 • Manufacturer reported COP at 5 °F must exceed 1.75

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