Lower Energy Costs for New York City Condominiums, Cooperatives, and Rental Buildings

The rise in annual energy costs for New York City buildings can be staggering, especially for multifamily rental properties, condominiums, and cooperatives. To help our clients reduce annual energy costs, FirstService Residential has partnered with Logical Buildings, an industry-leading sustainability and smart building technology provider that offers an advanced suite of decarbonization technologies that simplify energy management and carbon emissions reduction for condo and co-op boards, multifamily building owners, and residents.
 
There are two user-friendly platforms from Logical Buildings that reward building owners and residents in utility bill credits or cash rewards for reducing consumption during peak hours when the demand on New York City’s energy grid is highest. The SmartKit platform for buildings and the GridRewards app for residents enable participation in Con Edison’s “demand response program,” which pays subscribers to reduce electricity usage during specific times in the summer.
 
In summer 2023, FirstService Residential property managers delivered $50,000 in demand response revenue to buildings enrolled in the SmartKit platform. Residents enrolled in GridRewards collectively earned nearly $8,000 for their participation. Contact our local experts to get started.
 

How do demand response programs work?

During particularly hot or cold days, when utility customers consume more power to keep cool or stay warm, a utility company’s ability to deliver consistent, reliable power can be challenged. To relieve stress on the energy grid and avoid brownouts or blackouts, utility companies created demand response programs to incentivize participants to reduce their consumption during peak demand times.
 
Con Edison’s demand response program runs from May 1 through September 30 each year. The utility provides a one-day notice for most demand response events. SmartKit and GridRewards subscribers can sign up for automated alerts delivered via phone, text, and e-mail.

"It's actually more cost-effective for Con Edison to pay you to reduce usage than it is for them to meet excess demand by ramping up operations at their power plants."

— Sammi Leroy, Senior Smart Buildings Solutions Manager | Logical Buildings 

 

How can buildings enroll in SmartKit?

To participate, buildings must be equipped with a Con Edison smart meter. We always advise buildings to work with a professional partner like FirstService Energy, the expert advisor to buildings managed by FirstService Residential, to handle any adjustments to building mechanicals and electrical systems that may be required to maximize annual savings.

Logical Buildings also provides onboarding and training services to help condo and co-op boards and building owners generate maximum returns. This includes year-round support, hourly insights, and access to energy advisors who can speak to the individual needs of the building.

The heatmap below shows electricity consumption at a FirstService-managed property during a hot week in July. Our property managers and resident managers utilize this data from Logical Buildings to illustrate savings delivered to the boards and owners we serve.
 

"Con Edison has spent $2 billion upgrading all of the meters in New York City and Westchester County. No longer do they have to send a person to your building to read the meter. Now, they’re getting data every 15 minutes or hourly, depending on the meter in your building. They know exactly how much to charge you for exactly how much you used."

— Sammi Leroy, Senior Smart Buildings Solutions Manager | Logical Buildings 

  

How much money can buildings earn by using SmartKit?

The answer depends on how much the property can reduce its energy consumption during demand response events, which ultimately depends on a building’s size and mechanical systems.

In 2023, Lincoln Square Condominium, a 281-unit condo tower in Manhattan, earned nearly $16,000 by lowering its energy consumption during Con Edison peak demand events. With the help of FirstService Energy, Logical Buildings worked with the resident manager to identify building-specific, energy-saving actions to take during peak demand events. This included increasing A/C thermostat temperatures in common areas and hallways, deactivating non-critical building mechanicals like the compactor, and avoiding energy-intensive maintenance activities.

Read the full story in Habitat Magazine.
 

How can residents enroll in GridRewards?

Residents can enroll by downloading the free GridRewards app, even if their building isn’t enrolled in a demand response program. Only residents who pay their own Con Edison bill can enroll in GridRewards.

 
 

How much money can residents earn with GridRewards?

Many board members and building owners are concerned about anticipated Local Law 97 fines and the struggle to incentivize residents to reduce their consumption. Local Law 97 requires buildings over 25,000 square feet to reduce their emissions by 40% by 2030 and 80% by 2050 or face costly fines. With GridRewards, residents can earn money for themselves while also reducing their building’s overall carbon emissions by following year-round guidance provided by the app.
 
The average user earns around $100 a year for participating in GridRewards events, or about one month of electricity fees, simply by following the prompts in the app. Residents also earn an extra $10 for referring a friend and there is no limit to how many friends a GridRewards user can invite. If a referred GridRewards user reduces their consumption by 0.5kW during each GridRewards event, both the referred and referee will earn the $10 bonus.
 

How much does it cost to sign up for SmartKit and GridRewards?

Our partnership with Logical Buildings means zero upfront costs for boards and building owners interested in the SmartKit platform. There are also no upfront costs for residents to download GridRewards. Board members, building owners, and residents will never be charged by Logical Buildings for using these platforms.
 
Logical Buildings is compensated exclusively through a share of the demand response revenue generated by each building or each resident. This covers the onboarding, training, and support services provided, as well as the cost of maintaining the software. Logical Buildings allows subscribers to opt out at any time, and there are no penalties for falling short of energy reduction goals.
 
Enrollment is open year-round, but buildings that enroll prior to March 31 of any given year are eligible for the highest possible incentives.

"There's no risk in participating in either of these programs. It's a great way for building operators, boards, managers, and residents to reduce carbon emissions, earn money, and reduce their energy bill."

— John Skipper, Director | FirstService Energy 

 

How can I sign my building up for SmartKit? How can I spread the word about GridRewards?

Contact our local experts to get started.

 

FirstService Energy has helped buildings managed by FirstService Residential save more than $25 million in energy costs while reducing the carbon footprint of our New York management portfolio by more than 15% since 2010.

By partnering with FirstService Residential you receive exclusive access to FirstService Energy, our affiliate company and trusted energy advisor. This includes customized and cost-effective solutions to boost efficiency and reduce energy consumption and costs, ultimately reducing a building’s carbon footprint and environmental impact.
 
Take a look at some of the energy efficiency solutions we offer to New York City condominiums, cooperatives, and multifamily rental buildings.
 

• Energy Procurement through Community Distributed Generation (CDG) and Energy Aggregation Programs
   
• Utility Bill Audits
   
• Electric Vehicle (EV) Charging Stations Made Simple
   
• Energy Benchmarking