Winning grants from the New York State Energy Research and Development Authority (NYSERDA)

There’s a whole world of grants out there for climate startups. Along with the cash, these awards will help you forge partnerships, scale your impact, and boost your credibility – but navigating the application process can be overwhelming.In our ongoing series, in partnership with Climate Finance Solutions, we’re doing a deep dive into the State and Federal Agencies that offer these transformative grants. Here, we’ll outline how to find, apply, and win funding from the New York State Energy Research and Development Authority (NYSERDA). 

What is NYSERDA?

NYSERDA is the primary – though not the only – entity in New York state offering grants to projects that decarbonize all areas of the state’s economy. Its wider goals also include growing an equitable state economy and improving the well-being of New York’s residents.

As well as providing funding, NYSERDA engages in research and policy development, and collaborates with a wide range of stakeholders – including the private sector, local government, community leaders, and residents – with a view towards strengthening the state’s climate tech ecosystem.

NYSERDA is aligned with the Climate Leadership and Community Protection Act (Climate Act) Goals – including running the state on 100% zero-emissions energy by 2040 and ensuring that 35% of its investments benefit disadvantaged communities.

What types of grants are available?

NYSERDA’s key areas of focus are curtailing greenhouse gas emissions, curbing the cost of the clean energy transition for residents and businesses, decarbonizing buildings, and improving energy resilience. Its funding programs include the Clean Energy Fund, which supports the development of clean energy technologies; Clean Energy Communities, which offers funding to local governments to implement clean energy initiatives; and Residential Financing, which provides loans for residents to improve their energy efficiency and other benefits. NYSERDA also runs the Clean Energy Standard, which grows large-scale renewables across the state; the Regional Greenhouse Gas Initiative, a program to cap and reduce CO2 emissions from the power sector; and bond financing through the New York Green Bank.

The agency offers funding to support the research and development and commercialization of a wide range of technologies, including across transportation, energy storage, grid modernization, green/clean fuels like hydrogen, climate resilience, and renewable energy, such as offshore wind, solar, and geothermal. It’s also the leading US state agency when it comes to funding for building decarbonization, despite the fact that California has more funding overall. 

Who’s eligible for NYSERDA grants?

Eligibility depends on the program and encompasses a wide range of entities, from builders, developers, private businesses, and financial entities, to local governments, non-profits, schools, and training providers. 

How to find current opportunities

You can view the full range of available grants through the NYSERDA Portal, or sign up to get updates on new opportunities via email or text. 

Writing a successful proposal 

Applications are submitted through the NYSERDA portal. After registering, select your desired Program Opportunity Notice (PON) and complete the Consolidated Funding Application – a standardized application package used throughout the state and a fairly unique benefit among US government funders at all levels. Most programs also have some unique application elements. To help things go as smoothly as possible, familiarize yourself with the CFA before filling out the application.

In your application, be sure to quantify your project’s milestones and impacts, such as energy saved, jobs created, or number of disadvantaged households served, where possible. Another important point to note is that, although your company doesn’t need to be headquartered in New York in order to apply, the work must be carried out within the state, and you’ll need a plan to scale the funded technology or solution there.

Common mistakes to watch out for 

First, the obvious: make sure you haven’t overlooked anything in your application. Read the instructions carefully, respond to all the text prompts, and fill out all the forms and templates required by the program.

You also need to understand that the key to a successful NYSERDA application is addressing the program’s equity requirements and objectives, which you can do by demonstrating your impact in concrete figures. Having the right partnerships in place is also critical, as is developing a legitimate scaling plan within the state.

One catch is that some NYSERDA programs require a royalty for R&D grants if the technology goes on to generate revenue. To avoid any surprises, check whether this clause applies to the category you’re applying to, and be clear internally before you apply about whether or not you are willing to accept the royalty if you win – you don’t want to go to all of the trouble of applying only to have to reject the grant award.

How NYSERDA evaluates grant applications 

NYSERDA’s scoring system varies by program, with some awarding points for how well your application aligns with specific energy goals (e.g., New York’s goal of reaching 70% renewable energy by 2030) as well as the cost/benefit ratio of your project. 

Certain programs, like Clean Energy Communities, also include a ranking system for ‘high impact actions’ – the greater the project’s impact, the more funding is available. Within the program, communities are then ranked on a public scorecard documenting the type and number of impactful actions they’ve completed.

Typical timelines for a NYSERDA grant

The agency generally takes between three and six months to review applications and come to a final decision. The contracting process usually takes 4-8 weeks.

Keeping compliant with agency requirements 

To avoid running into issues over the course of your award, follow the terms and conditions laid out in the agency's Standard Agreement. This will go into depth about the scope of work expected of you, along with key deadlines and deliverables. To ensure that you are in compliance, work with an expert consulting firm like Climate Finance Solutions.

Other benefits of receiving a NYSERDA grant

As part of launching and running your project, you’ll cement strong partnerships with key stakeholders across New York, from industry leaders to academic institutions and community organizations. These relationships will elevate your project’s impact, serve you well as you continue to scale, and could open doors to further opportunities.

Securing NYSERDA funding will also serve as an endorsement of your technology or solution from a reputable agency, helping you stand out in the eyes of future investors, partners, and customers. It can also be a stepping stone to other, larger awards, either from NYSERDA or federal agencies. If you do decide to compete for continuation funding, the state’s Consolidated Funding Application makes it simple by allowing you to clone or repurpose your previous application.

Looking to the future of NYSERDA grant programs

NYSERDA’s annual budget is consistently growing, having risen from $1.4 billion in 2023 to a projected $2.2 billion in 2025. This year’s budget has already been appropriated. 

NY Green Bank, a specialized investment fund, has invested a cumulative $2.4 billion in clean energy projects in the state. Other new programs are still being rolled out, such as NYSERDA’s Solar Grant Block, which provides incentives to make solar energy more affordable for homeowners.

What to do if your grant application is unsuccessful

If your NYSERDA application is not awarded, take the time to understand why. Go through the feedback from your reviewer with a fine-tooth comb and request a debrief from the agency. NYSERDA Program Managers are usually willing to talk you through your application’s strengths and weaknesses. Once you have a firm handle on where you fell short and how you can improve, consider addressing the issues and resubmitting your application. If you need guidance throughout this process, consider reaching out to a specialist like Climate Finance Solutions.