Published February 6, 2026
By NZero
New York City has formally adopted the 2025 Energy Conservation Code, marking another significant step in the city’s long-term effort to reduce building energy use, curb emissions, and modernize how buildings interact with the electric grid. Buildings account for roughly two thirds of New York City’s greenhouse gas emissions, making energy codes a central policy tool alongside building performance standards such as Local Law 97. The updated code reflects lessons learned from the 2020 edition and introduces new requirements that prioritize efficient electrification and smarter energy use rather than simple fuel switching.
The adoption of the 2025 Energy Conservation Code updates the standards that govern how new buildings and major renovations must be designed and constructed in New York City. The city’s approach closely aligns with the latest New York State Energy Conservation Construction Code while layering on additional city specific requirements that respond to local climate goals and grid constraints.
A central theme of the 2025 update is smart electrification. As New York City continues to transition away from fossil fuel heating systems, policymakers have emphasized the need to avoid inefficient electric solutions that could increase peak electricity demand and strain the grid. The new code therefore focuses on higher efficiency systems, improved controls, and readiness for demand response rather than broad mandates to electrify at any cost.
City officials and industry stakeholders have framed the code as a way to balance decarbonization with reliability. By tightening efficiency requirements and integrating grid aware technologies, the city aims to ensure that electrification supports emissions reductions without driving unnecessary infrastructure expansion or higher system costs.
The 2025 Energy Conservation Code builds on national model codes and state level updates while addressing challenges specific to dense urban buildings. The code applies to new construction and substantial renovations across residential and commercial buildings, with requirements that span the building envelope, mechanical systems, lighting, and controls.
Key elements of the 2025 code include:
These provisions are designed to reduce overall energy consumption while making electrified buildings more flexible and responsive to grid conditions. The emphasis on controls and system performance reflects a broader shift toward treating buildings as active participants in energy systems rather than passive consumers.
Compared with the 2020 Energy Conservation Code, the 2025 edition raises performance expectations across multiple areas. While the 2020 code already represented a step forward in efficiency, the new requirements are more comprehensive and more closely tied to electrification outcomes.
The most notable differences include tighter envelope performance standards, which reduce heating and cooling loads before equipment choices are even considered. Mechanical system requirements have also been refined to discourage inefficient electric solutions and to encourage higher performance heat pumps and controls. In addition, the 2025 code expands requirements related to system monitoring and controls, reflecting the growing role of digital energy management.
Another key change is the explicit integration of demand response concepts. While the 2020 code focused primarily on reducing baseline energy use, the 2025 update recognizes the importance of when energy is used. This shift aligns with broader grid challenges as electrification increases peak demand risks, especially during extreme weather events.
For developers and design teams, these differences mean earlier coordination across architecture, engineering, and energy modeling disciplines. Compliance is less about meeting isolated component requirements and more about delivering cohesive system performance.
The New York City Department of Buildings has outlined a clear transition timeline between the 2020 and 2025 energy codes. Projects filed on or after March 30, 2026 must comply with the 2025 Energy Conservation Code. Projects filed before that date may continue to follow the 2020 code, even if construction extends beyond the enforcement date.
Compliance with the energy code is typically demonstrated through approved energy analysis tools and documentation submitted as part of the permitting process. The Department of Buildings provides guidance on acceptable software and methodologies, as well as instructions for determining whether a project falls within the scope of the code.
Not all construction activity is regulated under the energy code. Certain minor alterations and repair work may be exempt, though these determinations are highly specific and depend on project scope. Developers and owners planning projects near the transition date are encouraged to confirm which code edition applies early in the design process to avoid costly revisions.
For building owners and operators, the 2025 Energy Conservation Code signals a continued tightening of expectations around energy performance and system intelligence. While the code primarily affects new construction and major renovations, its influence will extend beyond individual projects as it shapes market norms and technology adoption.
Over time, buildings designed under the 2025 code are likely to have lower energy use, improved comfort, and greater operational flexibility. The increased focus on controls and demand response readiness also aligns with growing interest in real time energy management and compliance with other city policies such as emissions caps.
As New York City continues to advance its climate agenda, the 2025 Energy Conservation Code represents an important bridge between efficiency, electrification, and grid integration. For stakeholders across the real estate and energy sectors, understanding the code’s requirements and timelines will be critical to managing risk and capturing long term value.
