New York’s All-Electric Mandate Is Here; Long Island Needs to Get Ready

All-Electric Buildings Act Reshapes Design and Incentive Strategy for LI Projects

New York’s landmark All-Electric Buildings Act (AEBA) is officially transforming how new buildings will be designed across the state and Long Island developers, property owners, and contractors must prepare.

Beginning January 1, 2026, all new construction seven stories or fewer must be fully electric, with no fossil-fuel combustion systems allowed for space heating, hot water, or cooking. By 2029, this rule will apply to all new buildings, regardless of height.

This shift aligns with state climate law and will have significant ripple effects across Long Island’s residential, multifamily, and mixed-use development sectors.

AEBA Overview: What the Law Requires^[1]

Key Mandates

• All-electric design required for new buildings less than 7 stories by 2026
•  Mandate expands to all new buildings in 2029
• Applies to heating, hot water, cooking, and clothes drying systems
• Exemptions: hospitals, commercial kitchens, industrial facilities, and emergency generators
• A utility-readiness clause allows waivers in areas where electric grid infrastructure is not yet adequate
• This law makes technologies like heat pumps, induction stoves, and electric water heaters the new standard in New York construction.

What This Means for Long Island’s Buildings

Long Island’s residential and multifamily sectors including townhome developments, garden-style apartments will need to pivot quickly:

Design Impacts

• Elimination of natural gas boilers, stoves, and water heaters
• Upgrades to electrical service sizing and EV-ready panel design
• Heat pump and induction cooking integration becomes baseline

Incentives Available

STRATCO can help stack rebates that turn all-electric compliance into a financial win:

• New York State Energy Research and Development Authority offers New Construction incentive-specific programs
• PSEG Long Island has electrification rebates, contingent upon the equipment used
• Federal IRA tax credits for heat pump and electric appliance installations
• Depending on your town, electrification strengthens zoning and funding eligibility
• For Affordable Housing projects most programs offer increased benefits



RMI All-Electric Residential New Construction Case Study^[2]

In 2022, the Rocky Mountain Institute (RMI), a non-profit research organization, published a report called ‘The Economics of Electrifying Buildings: Residential New Construction’ which modeled one year of energy use for a newly constructed, detached single-family home. The report found the initial costs of an all-electric home in NYC were similar or lower than those of a home utilizing fossil fuel and additionally the annual upkeep and fuel costs were significantly lower. Given how this report is years old and heat-pump prices have continued to fall, today’s financial data would likely show even better benefits.

Conclusion

The All-Electric Buildings Act is a turning point in New York’s energy transition; it will ensure future development is sustainable and implicitly set standards for the electrification of Long Island’s existing building stock. So, whether you are building new townhomes, retrofitting a multifamily walk-up, or advising a co-op board, electrification is now the baseline. Fortunately, smart planning and the right incentive strategy can make the transition both affordable and profitable.

STRATCO Insight: PSEG Long Island’s New Construction incentives expire at the end of 2025 as this new code comes into force, so it would be ideal to act quickly and secure these incentives. Additionally, if within the last few months you completed a project and installed any of the previously mentioned electrification upgrades you may be able to retroactively obtain rebates.

Stay Informed. Stay Engaged.

STRATCO Property Solutions is a third-party specialist that navigates Long Island’s incentive programs. STRATCO serves the entire value chain with in-depth services to obtain the government incentives available for building upgrades or retrofits. For collaboration opportunities or if your team is planning new construction in 2025–2026, now is the time to transition away from fossil-fuel-based designs, contact us.

 Aidan Attina

 516 736 6179

 aa@stratcoproperty.com