A small co-op on West 94th St. replaced their aging oil-fired boiler with cold-climate heat pumps, using a Con Edison rebate to offset the cost, resulting in better heating and cooling control, efficiency, and improved building appearance. (Print: Financial Math That Actually Works)
For small co-ops with fewer shareholders to share costs, major infrastructure upgrades can be particularly challenging. This was the case at a landmarked seven-unit co-op on West 94th St., where an aging and unreliable oil-fired boiler had become a liability. "The filter would get clogged or we'd have disruptions of heat and hot water, and that was incredibly frustrating," says Stanton Young, the board president.
While the relatively simple switch to gas initially seemed appealing, a Con Edison clean heat rebate presented a more affordable opportunity. Replacing the old boiler with cold-climate heat pumps to provide the building's heating and cooling would cost north of $100,000, but the rebate amounted to $49,000, nearly halving the price tag. "The heat pumps provide better cooling and heating control and comfort and are more efficient," says Sina Jasteh, founder and managing director of Efficiti, the engineering consultancy brought in to manage the project and coordinate incentives.
Making the leap. The multi-pronged project underscored the need to have a point person to coordinate. "You are involving a lot of people — electricians, engineers and contractors," Young notes. First came increasing electrical capacity to handle the higher load. The board also needed to coordinate with the Landmarks Preservation Commission to approve the placement of condensers on the roof. Access to apartments was essential for installing heat-pump technology in the bedrooms and living rooms of each unit.
Additional hybrid heat pumps were installed in the basement to provide hot water for the building. The project also required removing the old steam heating system — boiler, risers and radiators — as well as fireproofing the new refrigerant lines throughout the building. "There was a lot of finishing work that had to be done," Young says. That made the project more expensive and time-consuming than expected.
The project was paid for upfront by a combination of an assessment and capital reserves because rebates, generally, are not received until some time after the work is finished. "We used the reserve fund to cover additional costs as they came along," Young explains. The bulk of the work took place last summer and the rebate was received about six months later.
Building benefits. While the co-op is well under 25,000 square feet and does not need to meet carbon emission targets under Local Law 97, the switch away from steam heat has still been a boon to shareholders. "Now everyone can control their own heat and air conditioning," Young says. This means the building is no longer overheating with residents opening windows to cool stuffy apartments in winter. "That is not an efficient use of energy at all," he adds. As an added plus, the upgrades allowed for the removal of window air-conditioning units, improving the building's exterior appearance and energy efficiency.