Energy Cost Savings Program
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The Energy Cost Savings Program (ECSP) can reduce regulated energy costs up to 45 percent and regulated natural gas costs up to 35 percent for eligible businesses. Regulated costs are the transmission and distribution costs by the regulated utility. The benefits associated with ECSP last for eight years followed by a four year phase-out during which benefits are decreased by 20% per year.
Businesses eligible for ECSP benefits include the following:
- Businesses that are moving from outside New York City or from designated areas of Long Island City (Queens) and Fulton Ferry (Brooklyn) to all areas of the City other than south of 96th Street in Manhattan, Long Island City, and Fulton Ferry;
- Businesses moving from Manhattan south of the center line of 96th Street to Manhattan north of the center line of 96th Street to the other four boroughs;
- Businesses making investments in real property that will improve such property by at least 30% of the property's assessed value and will be approved for benefits through the New York City Industrial and Commercial Abatement Program (ICAP);
- Businesses that will be approved for benefits through the New York City Industrial Development Agency (NYCIDA) or businesses that manage and/or operate in a building owned by the City of New York or Empire State Development Corporation, where the property will be improved by at least 10% of the property's assessed value.
Special Eligible Premises (SEP) are buildings which have previously undergone capital improvements and been approved by ECSP as eligible for benefits. SEP tenants occupying a space which has never received benefits may qualify for a full 12-year benefit; those businesses replacing a tenant that previously received ECSP benefits may be eligible to receive the remaining years of the benefit schedule of the prior tenant. To do so, the business must meet all program eligibility criteria and apply within 120 days of signing a lease to the premise.
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Additional Resources
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Con Edison Commercial and Industrial Energy Efficiency Programs
Energy Cost Savings Program Application
Solicitud para el Programa de Ahorro de Costos Energéticos (Energy Cost Savings Program)
ECSP Certificate of Continuing Business Activity / Annual Compliance Form
Con Edison Business Incentive Rate
Sales Tax Exemption for Manufacturers
New York City Industrial Development Agency (NYCIDA) Programs
North American Industrial Classification System (NAICS) Codes
Businesses must have an Employer Identification Number (EIN). Sole Proprietors that do not have an EIN may use a Social Security Number (SSN).
A Standard Industrial Classification (SIC) and / or North American Industry Classification System (NAICS) Code.
Property block number, lot number, and square footage of the eligible facility.
Copy of the lease or contract of sale for the eligible facility.
Copies of utility bills for the most recent 12 month period for each account number (if applicable). If 12 months are unavailable, copies of the most recent utility bill(s).
Electrical and natural gas account information, including customer account number, utility company, meter addresses (if different from mailing address), projected monthly electricity bill, and the types of machinery using electricity and / or natural gas. If the electricity / natural gas are sub-metered, indicate if there is a markup charged by the landlord (if applicable). Under ECSP rules, markups charged by landlords cannot exceed 12%.
Business name, contact person, and telephone number of all existing and / or anticipated future tenants and / or subtenants (if applicable).
Information on all stockholders, partners, officers and directors who have an ownership interest in the business, including: name, percent of ownership, date of birth, home address, social security number, and other business affiliations.
If the applicant is eligible through ICAP: ICAP application number, assessed value of the building, estimated construction and / or renovation costs, and start and end date of the construction / renovation period. ICAP applicants must comply with Minority and Women-owned Business Enterprise (M/WBE) requirements as outlined in the ICAP application.
If the applicant is eligible as a tenant within a Special Eligible Premise (SEP): Name and address of landlord, date lease was signed (if applicable), date building was approved as a SEP by the Department of Small Business Services (SBS), copy of the approval notice issued by SBS, copy of the ECSP Certificate of Eligibility for the building, and evidence that the landlord has made improvements required to meet the assessed value investment threshold (also known as the minimum required expenditure or MRE).
If the applicant is eligible through NYCIDA: assessed values of eligible block(s) and / or lot(s), estimated construction / renovation costs, and start and end date of the construction / renovation period.
If the applicant is relocating: copy of the lease or deed of the move-out location as well as a copy of the unsigned draft lease or unsigned draft contract of sale of the move-in location (this must be submitted before moving to the new location).
Businesses or developers renovating New York City or select State owned property must file an ECSP application prior to signing a lease with the City or State to manage the property, and before the issuance of a building permit for construction and / or renovation.
List of Permit Fees.
- A non-refundable application fee must be sent with every application. The fees, based on gross square footage of the eligible building, are as follows:
- Less than 10,000sf = $500
- 10,001sf to 25,000sf = $1,000
- 25,001sf to 50,000sf = $1,250
- 50,001sf to 100,000sf = $1,500
- 100,001sf to 250,000sf = $2,500
- Greater than 250,000sf = $5,000
List of accepted payment methods.
- Personal Check (Payable to New York City Department of Small Business Services)
- Certified Check (Payable to New York City Department of Small Business Services)
- Money Order (Payable to New York City Department of Small Business Services)
ESCP credits are only applied against the regulated transmission and delivery portion of the electricity or gas bill for qualified users, not to the entire utility bill. In the area of Manhattan south of the center line of 96th Street, ECSP is ONLY available to manufacturing businesses as defined by ECSP program rules. In addition to standard ECSP benefits, an additional benefit of 4.44 cents / kilowatt hour is available to businesses which install a distributed generation (cogeneration) system. Businesses making capital improvements must submit applications before the issuance of the project's building permit or start of renovation / construction work (if a permit is not required). Heating costs are not eligible under this program. Benefits are annually capped at $10,000 per employee. Additional restrictions may apply; contact SBS for a detailed description of program limitations and requirements. Applications must be submitted before June 30, 2023.
Determine documentation required to submit an application by reviewing the list of prerequisites. Some of the documentation may not be available at the time of application.
Complete the Energy Cost Savings Program Application, available under Application Materials, according to the instructions provided on the application form. Provide supporting documentation( listed in prerequisites) as required by the application form.
Send the application, along with the non-refundable application fee via postal mail to the Department of Small Business Services (SBS).
Applicants eligible through ICAP must submit an ECSP application to SBS after an ICAP application number has been issued to the business by Department of Finance (DOF). Within one year of the issuance of a building permit (or commencement of renovation / construction work if a permit is not required), the business must submit the ICAP Final Application to DOF. The business must submit evidence of renovation and / or new construction expenditures demonstrating improvements in excess of 30% of the premise's assessed value to DOF within four years of the final application. Evidence may include a signed spreadsheet from the contractor detailing the improvements made and copies of checks and / or invoices used to pay for construction and related services.
Applicants eligible through the NYCIDA must submit an ECSP application to SBS prior to the issuance of an NYCIDA Resolution. Within three years of the issuance of a building permit (or commencement of renovation / construction work if a permit is not required), the business must submit evidence of renovation and / or new construction expenditures demonstrating improvements in excess of 10% of the premise's assessed value to SBS. Evidence may include a signed spreadsheet from the contractor detailing the improvements made and copies of corresponding checks and / or invoices. During this time, applicants eligible through NYCIDA must also submit a copy of the NYCIDA Resolution, NYCIDA lease, and current Real Estate Tax bill to SBS.
Applicants renovating City- or State-owned buildings must submit an ECSP application to SBS prior to signing a lease with the City or State and before the issuance of a building permit for construction / renovation. Within three years of the issuance of a building permit (or commencement of renovation / construction work if a permit is not required), the business must submit evidence of renovation and / or new construction expenditures demonstrating improvements in excess of 10% of the premise's assessed value to SBS. Evidence may include a signed spreadsheet from the contractor detailing the improvements made and copies of corresponding checks and / or invoices.
Applicants applying as a "relocator" must submit an ECSP application to SBS prior to signing a lease for the new location. After execution, relocating businesses must submit a copy of the executed lease or contract of sale for the move-in location to SBS (a draft copy can be submitted at the time of application).
If an application meets all eligibility criteria, a Certificate of Eligibility is sent to the business and utility company indicating the start of the benefit period for each eligible utility account. Once enrolled, a business will continue to receive benefits up to eight years followed by a four year phase-out period.
Businesses receiving ECSP benefits are required to submit the Certificate of Continuing Business Activity / Annual Compliance Form, listed with Additional Information.
NYC Department of Small Business Services (SBS)
Business Incentives Unit
1 Liberty Plaza, 11th Floor
New York
NY
10006
Energy Cost Savings Program
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