A new program focused on the research and development of new insurance policies and products to promote the adoption of clean technologies across New York state is on the way.
The program will provide funding for products that manage the financial risk associated with climate change, supporting the state’s Climate Leadership and Community Protection Act goal of reducing carbon emissions 85 percent by 2050.
“New York state is leaving no stone unturned in our fight against climate change, and that includes investing in industries that will develop and advance clean, green technologies,” Gov. Kathy Hochul said. “By promoting innovative policies that will create more sustainable climate technology, we are taking bold action to meet the challenges of climate change. My administration remains laser focused on supporting key initiatives that will benefit both businesses and consumers while contributing to our state’s nation-leading climate efforts.”
The New York State Energy Research and Development Authority (NYSERDA) will select a program administrator to develop the new initiative, manage operations, leverage industry expertise, and boost research and development to establish new risk models.
The program administrator will also select innovative insurance ideas, products, and services, such as insurance for residential and commercial renewable energy projects, that will develop new business models to enable future climate technology solutions.
The program administrator will be awarded up to $1.5 million to work with managing general underwriters (MGUs) and managing general agents (MGAs) that can research, develop, and test new insurance products, and it will award up to $5 million in competitive grants which are anticipated to be announced in 2023.
“Addressing the financial risks from climate change through the research, development and advancement of insurance innovation for clean, efficient technologies is a win-win for New York businesses and consumers alike,” said NYSERDA President and CEO Doreen M. Harris. “The availability of this important R&D funding will ultimately support new business models that seek to overcome barriers for bringing new products to market and build on Gov. Hochul’s all-encompassing approach to achieving a carbon-neutral economy by mid-century.”
NYSERDA will accept applications from qualified organizations through Oct. 12.
A scoring committee will evaluate all proposals based on the published criteria. Each applicant must show how they can promote the research and development needed to bring new insurance products and services to market to meet the state’s climate and clean energy goals. This includes soliciting new insurance ideas, managing the development and growth of the program, and reducing risk for climate technology solutions and services.
This program is supported through NYSERDA’s Novel Business Model and Offering initiative, which promotes new business models, commercial service or product offerings, and tools that enable scaling of climate solutions through customer acquisition or increased capital flows. This program works together with NYSERDA’s innovation and entrepreneurial support programs to advance innovative technologies to market.
Officials said since 2009, the state has invested more than $28 million through NYSERDA’s entrepreneurial support programs, supporting nearly 374 companies and generating more than 1,700 jobs. More than $1.8 billion in private investments and $200 million in project finance capital have been created while helping bring more than 589 new and improved clean energy products to market, including LED lighting systems, home appliances, longer-lasting batteries, and more efficient heating-and-cooling systems.
Funding for this initiative is provided through the state’s 10-year, $5.3 billion Clean Energy Fund.