Improvements in energy efficiency, particularly in the construction of new residential houses and apartment buildings, is a critical component of the Governor's nation-leading Clean Energy Standard, which requires 50 percent of the state's power to come from renewable sources by 2030.

Homes and buildings that take advantage of this support are projected to see annual energy cost savings of more than $9m and total lifetime savings of as much as $180m, as well as improved household comfort and indoor air quality.

Governor Cuomo said: "Ensuring New York's buildings are constructed to the highest standards of energy efficiency is crucial to both our long-term sustainability and prosperity of the state.

"Smart choices about efficiency can simultaneously save money and protect the environment. This investment promotes that principle in order to build healthy communities and save consumers hundreds of millions of dollars."

Approximately $8m will be offered to housing developers and builders of low-rise housing, including single-family homes and multi-unit buildings generally three stories or less, through NYSERDA's Low-rise Residential New Construction program.

The other $8m will be offered to housing developers and builders of mid- and high-rise housing, generally multi-unit buildings of four stories or more, through NYSERDA's Multifamily New Construction Program.

Approximately 75 percent of the entire $16m in funding is designated for housing for low- to moderate-income residents, who are most vulnerable to high energy cost burdens and whose homes are often especially susceptible to the impacts of extreme weather.

Both programs support the incorporation of energy efficiency measures, such as increased insulation and improved air-sealing; high-efficiency heating, cooling, and balanced ventilation systems; energy-saving appliances and lighting; high-performance windows and doors; as well as renewable energy technologies.

This funding is being made available through NYSERDA's Clean Energy Fund, a 10-year, $5.3bn program to support clean energy market development and innovation. This fund is a major component of Governor Cuomo's Reforming the Energy Vision (REV) strategy to build a clean, resilient and affordable energy system for all New Yorkers.

New York State Chairman of Energy and Finance Richard Kauffman said: "To meet our energy and climate goals, energy efficiency must scale rapidly. With this investment, New York State is driving progress toward a robust and self-sustaining market for energy efficiency, both in new construction and major renovations of older building stock."

NYSERDA President & CEO John B. Rhodes said: "Building more efficient homes supports Governor Cuomo's innovative REV strategy while significantly improving consumer choice and energy affordability. By making these types of investments, New York continues to ensure energy-efficient housing is attainable for all, including low- to moderate-income New Yorkers."

In addition to providing direct funding support, NYSERDA will identify and promote the use of collaborative techniques among housing development, design and construction teams to ensure that cost-effective design and proper construction of efficient homes is replicated throughout the state.

The programs will also work to increase awareness and demand for zero net energy buildings, which are designed to produce as much energy as they use. These activities will support recent State initiatives to spur higher-performing affordable housing construction, for instance through the inclusion of a Passive House building track in New York State Homes and Community Renewal’s Unified Funding Application.

Energy efficiency programs are among the most cost-effective means to reduce carbon emissions overall in the energy sector according to a multitude of experts. Today's announcement will also build on New York's national leadership in green construction.

New York ranks in the top 5 states in terms of the volume of green construction, which contributed a total of $31.62bn to the state's GDP between 2011 to 2014 while supporting 369,000 New York jobs, according to a 2015 economic impact study by the U.S. Green Building Council.

State Senator Joseph Griffo, Chair of the Senate Energy Committee said: "As many New Yorkers struggle to afford the high energy costs of their homes, this funding to build new energy-efficient housing will help lower-income families save money while protecting them from sporadic spikes in utility rates."

Assemblywoman and Chair of the Assembly Committee on EnergyAmy Paulin said: "Providing funding for new energy-efficient housing is a win-win for New York. It will help reduce energy usage, while saving residents money on their utility bills. I am especially pleased that 75 percent of the funds will be made available to housing for low- to moderate-income residents, who need the savings the most."

Applications to both the Multifamily New Construction Program and the Low-rise New Construction Program will be accepted for qualified projects through December 29, 2017, or until the funding is exhausted.