PSEG Long Island's Clean Energy Vision

Powering a Resilient and Sustainable Future

PSEG Long Island plans to optimize programs aligned with the state's Climate Act (CPCLA) and broader energy objectives. The PSEG Long Island 2024 Utility 2.0 Filing and Five-Year Plan illustrates the utility's commitment to clean energy solutions for Long Island.

Figure 1: Supporting the Energy Transition Across Sectors^[1]

To effectively plan for the future, it is crucial to track the results of PSEG LI's programs relative to their established goals. In 2024, PSEG LI achieved 75% of its energy 2025 savings goal and projected 95% completion by the end of the year. STRATCO specializes in deploying incentives related to the Energy Efficiency and Heat Pump sections of Figure 1.

A portfolio of residential and commercial programs drove this progress:

• Home Comfort and Residential Energy Affordability Partnership (REAP) for weatherization and electrification
• Commercial Efficiency Program (CEP) for HVAC and lighting upgrades in large businesses
• Home Energy Management(HEM) for behavioral and monitoring-based savings

The portfolio claims a 1.25 societal benefit ratio, a metric that evaluates the financial effectiveness of NYS programs.

With 30,982 heat pump installations completed as of Q1 2024, PSEG LI surpassed its 2025 target of 30,000 units. Key to reducing carbon emissions from residential heating, these systems are promoted through initiatives, such as All-Electric Homes and Home Performance with ENERGY STAR®. The utility’s early success in this area reflects strong contractor engagement, customer incentives, and market demand.

Figure 2 reveals how the PSEG LI 2024 Utility 2.0 Filing and Five-Year Plan budgets Initiatives and estimates savings for commercial and residential markets.

Figure 2: Targeted Investment with Strategic ROI^[1]

PSEG LI has allocated $93.7 million in 2025 for ratepayer-funded energy efficiency programs. These initiatives are central to CLCPA compliance and present near-term funding opportunities for building owners, municipalities, and contractors across Long Island.

The plan also budgets $51.55 million (55.01% of the total funding) for residential programs:

• Energy-Efficient Products (EEP): The total portfolio includes 8.66% for Energy-Efficient Products (EEP). This includes streamlined rebates on energy-efficient appliances and smart devices, making it ideal for single-family developers, HVAC contractors, and energy consultants focused on quick retrofits.
• Home Comfort Program:  28.77% of total portfolio funding targets deep weatherization and high-efficiency heating systems. This program supports whole-building upgrades, including air sealing, insulation, and full heat pump installations.
• Residential Energy Affordability Partnership (REAP): Funding for REAP represents 3.60% of the total portfolio funding. PSEG LI’s direct-assistance program for low-to-moderate income residents provides full weatherization and electrification at little or no cost, while targeting disadvantaged communities.
• Home Performance (HPwES & HEA): The total portfolio includes 11.65% for larger retrofits compatible with NYSERDA programs.
•  All Electric Homes (AEH): The AEH program was discontinued at the end of 2024.
•  Home Energy Management (HEM): 2.34% of total portfolio funding provides support for energy monitoring tools and behavioral efficiency; these are often overlooked but critical for meeting project performance benchmarks.[1] 

The Plan’s 2025 budget includes $30.19 million (32.22% of total funding) for commercial and multi-family incentives:

• Commercial Energy Programs (CEP): 25.17% of the total portfolio funding offers incentives for lighting, controls, and HVAC upgrades for small to medium commercial portfolios.
• Multi-family Home Rebates: The portfolio allocates 7.05% to support common areas in larger buildings, new construction, or municipal retrofit cycles.

Strategic Insight: These programs provide a basis for owners of projects in the early stages of development or planning to define the most appropriate level of electrification for their property. PSEG encourages early engagement, especially for bundled upgrades to maximize rebates.

Conclusion

Having secured 2025 funding and finalized its strategy, PSEG Long Island is focused on a synchronized, data-informed expansion of clean energy. The company's Utility 2.0 filing demonstrates its dedication not only to meeting state mandates but also to fostering a fair and environmentally sound future.