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On May 2, 2023, New York State took a monumental step toward greener, more sustainable construction with the passing of the All-Electric Buildings Act. This bold legislation, part of a $229 billion state budget, sets the stage for a future free of fossil fuels in most new buildings. It’s a game-changer in the effort to cut greenhouse gas emissions and build a cleaner future.
At GreenSpark Solar, we’re not just passionate about renewable energy—we’re here to help you navigate the changes ahead. As experts in New York’s energy codes and permitting policies, we’ve compiled a guide to what the All-Electric Buildings Act means for you. Let’s break it down together:
Here’s what we’ll cover:
What Is the All-Electric Buildings Act?
The All-Electric Buildings Act is a forward-thinking law that requires new buildings across New York State to shift away from fossil fuels like natural gas, heating oil, and propane. Instead, new buildings must be built to use electric heat and appliances. Here’s how the rollout will happen:
- 2026: Buildings under seven stories must comply if the initial building permit application is submitted on or after December 31, 2025.
- 2029: Buildings over seven stories must comply if the initial application is submitted on or after December 31, 2028.
New York City has already started this journey. It passed a similar regulation in 2021, requiring smaller buildings to go all-electric by 2024 and larger ones by 2027. The All-Electric Buildings Act builds on that momentum statewide.
Who Does the All-Electric Buildings Act Impact?
The All-Electric Buildings Act applies to most residential, commercial, and industrial new constructions statewide. However, there are notable exceptions:
- Industries with specific operational needs, such as manufacturing plants, hospitals, and restaurants, are exempt
- Regions without reliable electric infrastructure may receive waivers if electrification isn’t feasible.
Existing buildings aren’t directly affected for now, but developers should stay tuned for future updates to renovation and retrofit guidelines. If you’re curious or have concerns, the NY Assembly has created a handy myth-busting overview to address common misconceptions about the All-Electric Buildings Act—it’s worth a read!
How the Energy Code Supports All-Electric Buildings Act
New York State is updating its Energy Conservation Construction Code with some key enhancements to make the All-Electric Buildings Act’s vision a reality. Here’s what’s in the works:
- A ban on fossil fuel-based systems in new buildings.
- Improved thermal envelope requirements to boost energy efficiency.
- Mandatory solar photovoltaic (PV) systems for commercial buildings, with a minimum capacity of 0.75 W/ft².
- Better standards for HVAC systems, water heaters, elevators, and escalators.
- Energy recovery ventilation for residential buildings in Climate Zone 6.
- Extra efficiency credits for innovative designs and detailed compliance documentation.
These updates will create a clear path forward for energy-efficient construction. Following a vote in the spring of 2025, they’re expected to take effect in late 2025.
Benefits of Carbon-Neutral Construction
New York’s shift to carbon-neutral buildings offers a range of benefits for homeowners, businesses, and developers alike:
For Homeowners Building a New Home:
- Electric buildings can save nearly $1,000 a year on heating.
- Solar is a cost-effective way to power your all-electric home and provides protection against utility rate hikes (increasing 5-15% annually in our area) from day one.
- Take advantage of current incentives covering up to 55% of your solar installation costs to maximize energy savings.
For Businesses Building a New Commercial Building:
- Electric buildings can reduce a business’s annual energy costs by thousands of dollars.
- Replace unpredictable utility rates with low, stable energy costs, lowering operating expenses to boost your bottom line.
- Achieve corporate sustainability and ESG goals to attract and retain eco-conscious employees, partners, and customers.
- Historic incentives can sometimes cover up to 100% of solar installation costs. GreenSpark Solar can help you secure eligible incentives.
For Developers and Designers:
- Establish yourself as a market leader in electrification to gain an edge over competitors.
- Boost your project’s profit margins by incorporating solar and other clean energy features.
- Unlock carbon-neutral funding and incentives (like NYSERDA’s Building Cleaner Communities Competition and Buildings of Excellence) that make sustainable construction more profitable and accessible.
Partner with GreenSpark Solar’s expert EPC team for end-to-end support, from feasibility studies and incentive applications to turnkey solar, EV, and HVAC solutions.
What’s Next for Builders, Developers, and Designers?
If you’re planning new construction projects in New York, now’s the time to get familiar with these changes. Embracing all-electric designs and meeting updated energy codes can set your projects apart while helping you stay ahead of compliance deadlines. GreenSpark Solar is here to help you navigate this new landscape with confidence and expertise.
Together, we can make the shift to sustainable building seamless and financially beneficial for your bottom line. Let’s build a cleaner, brighter future for New York, one project at a time.
Curious about how these programs and GreenSpark Solar can support your project?
Get in touch with our team today!
