A new pilot programme aimed at providing opportunities for contractors and energy efficiency service providers to serve customers with energy-saving measures and help them reduce energy consumption and costs has been launched.

The New York State Energy Research and Development Authority (NYSERDA) and National Grid have joined forces for the Home Energy Savings Programme, a “pay-for-performance” residential energy savings project in Central New York.

Under the pilot, NYSERDA has committed to award up to $6 million (£4.6m) in funding, with energy efficiency service providers selected through a competitive process to deliver energy savings to around 1,500 National Grid electricity and natural gas customers.

The selected service providers will be compensated over three years for achieving energy savings measured using advanced utility meter data.

The new performance-based model is expected to foster a “whole-house” energy approach which will support the installation of packages of measures such as insulation, air sealing, lighting, smart thermostats, high efficiency hot water heaters and similar energy savings solutions to a larger portfolio of homes over a number of years.

It is expected to deliver additional energy and bill savings of 10% to 30% for customers.

Doreen M. Harris, Acting President and CEO of NYSERDA said: “Buildings are one of the leading generators of greenhouse gas emissions in New York and by bringing the benefits of energy efficiency to the residential market, we will be taking another significant step in achieving Governor Cuomo’s climate goals that will protect our communities and natural resources.

“We are excited to partner with National Grid to launch this groundbreaking pilot for Central New York homeowners and expect that it will serve as a successful model for spurring residential efficiency solutions in the rest of the state.”