NYCEDC – Financing & Incentives – Energy Savings

Energy Savings

ENERGY COST SAVINGS PROGRAM

	Program Description
	Eligibility & Tips
	Program Benefits

	Example Benefits Calculation
	Contact Information

PROGRAM DESCRIPTION

Energy Cost Savings Program (ECSP) is an energy discount program administered by the Department of Small Business Services (SBS). The program reduced energy costs for businesses that (a) relocate to, (b) make improvements to property in, or (c) lease space in, previously improved buildings in Manhattan above 96th Street or in Brooklyn, Queens, the Bronx, or Staten Island.

ECSP description (65 KB)

ELIGIBILITY & TIPS

GENERAL ELIGIBILITY

The business must meet one of the criteria below:

Relocation
The business must be relocating to designated areas of the City from (a) outside of New York City; or (b) certain designated areas of Fulton Ferry, Long Island City or Manhattan below 96th Street.

OR

Capital Improvements
The business must (a) improve the property by at least 10% of the property’s assessed value; and (b) either be financing its improvements through the Industrial Development Agency (“IDA”), or receiving benefits through the New York City Industrial and Commercial Incentive Program (“ICIP”).

OR

Tenants
The business must be a tenant in a building that has already undergone capital improvements in connection with ECSP (“special eligible premises”).

In Manhattan south of 96th Street, only available to industrial businesses.

Not available to retail stores, hotels, personal-service providers, and public benefit corporations.

TIPS

Applications must be filed before the lease is signed or capital improvements are made.
Businesses applying in connection with IDA benefits must apply prior to execution of an IDA Inducement Resolution.
Tenants moving into “special eligible premises” must apply for benefits within 120 days of signing a lease at the new site, or if an existing tenant, 120 days from the time the site is approved as a “special eligible premises.”
Energy must be directly metered or sub-metered to the recipient.
Sub-metered energy cannot be marked up by more than 12%.
Similar benefits are available for businesses in Lower Manhattan under the Lower Manhattan Energy Program (LMEP).

PROGRAM BENEFITS

ECSP can reduce the costs of the delivery of electricity bills by 45 percent and the delivery component of natural gas bills by 35 percent for firms that improve a property or relocate to designated areas of New York City. The reduction is available for 12 years; benefits phase out from year 8-12.

EXAMPLE BENEFITS CALCULATION

XYZ Corporation, a financial services firm with 300 employees, relocates from outside of New York City to 100,000 SF of office space in Downtown Brooklyn. The company averages 16 daily operating hours of medium commercial usage, for an annual delivery bill of $81,004.

Year

ECSP Percent
ECSP Benefit

1

100%
$36,452

—

—
—

8

100%
$36,452

9

80%
$29,162

10

60%
$21,871

11

40%
$14,581

12

20%
$7,290

Total (Nominal)
$364,520

NPV (6.25%)
$263,970

As shown above, ESCP would result in aggregate savings of $280,469 in electricity delivery expenses over 12 years. Note: ECSP Percent is the percentage of the initial year’s benefit that is available each year.

CONTACT INFORMATION

Get more information about ECSP in the New York City Department of Business Services section of the City’s Website.

Small Business Solutions
110 William Street
New York, NY 10038
311 or 212-NEW-YORK (from outside New York City)
businesssolutions@sbs.nyc.gov