Your NYC Energy Grade Is Coming in October — Here’s What It Means and What to Do
New York City building owners have another important date to keep on the calendar: October 1, 2026. That is when the city’s annual Building Energy Efficiency Rating labels become available for buildings covered by the NYC energy grading requirements.
If you own or manage a commercial, multifamily, or other covered building, the letter on that label can tell you more than whether your property is performing well. It can also highlight opportunities to reduce energy costs, improve building performance, and prepare for other NYC energy regulations.
Under Local Law 33, as amended by Local Law 95, covered buildings receive an energy efficiency score and letter grade based on their ENERGY STAR performance. The 2026 label must be posted in a conspicuous location near each public entrance between October 1 and October 31.
So, what does your NYC energy grade actually mean? And what should you do if your building receives a C, D, or even an F?
What Is the NYC Energy Grade?
The NYC energy grade is a public rating of a building’s energy performance. It is based on the building’s ENERGY STAR score, which compares its energy performance with similar buildings using the U.S. Environmental Protection Agency’s ENERGY STAR Portfolio Manager.
The grading system is straightforward:
- A: ENERGY STAR score of 85 or higher
- B: Score of 70 to 84
- C: Score of 55 to 69
- D: Score below 55
- F: Required benchmarking information was not submitted
- N: The building is exempt from benchmarking or is not eligible for an ENERGY STAR score
The grade is not simply a measure of how much energy your building uses. It reflects how the building performs compared with similar properties after considering the factors used by the ENERGY STAR system.
That distinction matters.
A large building may naturally use more total energy than a smaller property. What matters for the ENERGY STAR score is how efficiently the building performs relative to comparable buildings.
Why October 2026 Matters for Building Owners
The October deadline is not a new requirement. NYC has required covered buildings to display energy efficiency grades for several years.
What is important is that the 2026 label reflects your building’s reported performance for the applicable benchmarking year.
For 2026, covered buildings were required to benchmark their 2025 energy and water consumption by May 1, 2026. The resulting energy efficiency grade is then made available through the city’s process for annual disclosure.
The label must be displayed no later than October 31, 2026, and it needs to remain visible until the next annual label is issued.
This makes October more than a posting deadline. It is a useful annual checkpoint for reviewing your building’s energy performance.
What Does an A, B, C, or D Grade Mean?
An A grade generally indicates strong energy performance. However, it does not mean the building has no opportunities for improvement.
A B grade is also a solid result, but owners should still review energy use trends. A building can lose performance over time because of aging equipment, changes in occupancy, operating schedules, or maintenance issues.
A C grade deserves closer attention. It suggests that there may be meaningful opportunities to improve energy efficiency.
A D grade should be treated as a warning sign. It means the building’s ENERGY STAR score is below 55 and may indicate significant energy efficiency opportunities.
An F grade is different. It is assigned when required benchmarking information was not submitted. It is therefore primarily a compliance problem rather than a direct measurement of poor energy performance.
For building owners, the key takeaway is simple: do not look at the letter grade in isolation. Review the underlying energy data and identify why your property received that score.
Does a Low Energy Grade Mean You Are Violating LL97?
No.
This is one of the most important points for NYC property owners.
Your Local Law 33 energy grade and Local Law 97 greenhouse gas emissions compliance are related to building performance, but they are not the same requirement.
LL33 focuses on the building’s energy efficiency score and public energy grade. LL97 focuses on greenhouse gas emissions limits for covered buildings.
A building could have a relatively good ENERGY STAR score and still need to evaluate its LL97 exposure. Likewise, receiving a lower LL33 grade does not automatically mean that the building is over its LL97 emissions limit.
However, poor energy performance can be an important signal that your building should be reviewed more closely.
Energy waste can increase operating costs and, depending on the building’s energy sources and systems, contribute to higher emissions.
That is why an energy grade should be viewed as part of a broader NYC building energy management strategy.
What Should You Do Before October?
If you are responsible for a covered NYC property, do not wait until the label appears to start reviewing your building.
1. Confirm Your Benchmarking Information
Start by confirming that your building’s required benchmarking report was submitted correctly.
Benchmarking is the foundation of the NYC energy grading process. Errors in utility data, property information, floor area, occupancy, or other inputs can affect the quality of the reported information.
If you manage multiple properties, review each building separately. A portfolio-level review can also help identify properties that are performing significantly below their peers.
2. Review Your Previous Energy Grade
Look at your building’s previous grade and compare it with the upcoming result.
Ask:
- Did the score improve or decline?
- Has energy consumption increased?
- Did occupancy change?
- Were HVAC systems replaced or modified?
- Have operating schedules changed?
- Did utility costs rise?
- Were recommended energy improvements completed?
A year-to-year comparison can reveal trends that a single letter grade cannot.
3. Investigate the Biggest Sources of Energy Use
For most buildings, HVAC systems, heating, cooling, lighting, domestic hot water, and other mechanical systems can represent major areas of energy consumption.
An energy audit can provide a more detailed picture.
A professional energy audit examines how a building consumes energy and identifies practical measures that can reduce consumption and operating costs. The Cotocon Group’s energy audit services, for example, evaluate building systems and identify energy-saving opportunities while considering occupant comfort and building operations.
The goal should not be to replace everything.
Instead, focus on measures that offer a reasonable combination of energy savings, cost savings, operational reliability, and return on investment.
4. Look at Building Controls and Operations
Energy efficiency does not always require expensive equipment.
Sometimes the problem is how existing systems are operated.
Incorrect temperature settings, unnecessary operating hours, poor scheduling, simultaneous heating and cooling, poorly calibrated controls, and maintenance problems can all increase energy use.
This is where retro-commissioning can be valuable.
Retro-commissioning examines existing building systems and operating practices to identify low-cost or operational improvements. It can help owners improve HVAC performance, controls, sequencing, maintenance, and overall building efficiency.
For many older NYC properties, these improvements can be a practical first step before investing in major capital projects.
5. Connect the Grade to Your LL97 Strategy
Your October energy grade should not be reviewed separately from your long-term carbon reduction plans.
NYC’s building regulations are becoming increasingly important for owners of larger properties. Local Law 97 emissions limits are already in effect, with stricter requirements approaching for the 2030–2034 period.
That means building owners should understand not only how much energy their property uses today, but also how current operations could affect future compliance.
Energy audits, retro-commissioning, electrification, HVAC improvements, lighting upgrades, building envelope improvements, and other energy conservation measures may all have a role depending on the property.
What If Your Building Gets a D or F?
Do not panic, but do not ignore it.
If you receive a D, begin with the data. Identify the systems and operating conditions that are driving energy use. A professional energy assessment can help prioritize improvements.
If you receive an F, first determine whether the required benchmarking information was submitted properly and on time. NYC states that an F grade is assigned when required benchmarking information was not submitted.
Also remember that posting the energy label is itself a legal requirement. Failure to display the required label can result in a $1,250 DOB violation.
The label must be placed near each public entrance, where it is clearly visible. NYC guidance states that it should be displayed at a height of no less than four feet and no more than six feet from the floor and should not be hidden or obscured.
How Can Building Owners Improve Their Energy Grade?
There is no single upgrade that will improve every building’s score.
The right strategy depends on the property’s age, size, use, equipment, occupancy, operating schedule, and existing energy profile.
Common areas to investigate include:
- HVAC system efficiency
- Boiler and heating system performance
- Building controls and scheduling
- LED lighting and lighting controls
- Insulation and building envelope performance
- Air leakage
- Domestic hot water systems
- Equipment maintenance
- Tenant energy use
- Renewable energy opportunities
- Electrification opportunities
The most effective approach is usually to prioritize improvements based on actual building data rather than making upgrades simply because they are popular.
For example, an older building may benefit significantly from controls optimization before replacing major equipment. Another property may need a larger HVAC or electrification project to address long-term carbon and energy goals.
Why an Energy Consultant Can Help
NYC’s energy regulations can be difficult to manage when benchmarking, energy grades, audits, retro-commissioning, and emissions requirements are handled separately.
An experienced energy consultant can connect these pieces.
The Cotocon Group provides NYC building energy benchmarking, energy audits, Local Law compliance, retro-commissioning, and decarbonization services for building owners and property managers. Its approach is designed to turn building performance data into practical actions rather than treating compliance as a once-a-year filing exercise.
For example, a low energy grade can become the starting point for an energy audit. The audit can identify energy conservation measures. Those measures can then be evaluated against operating costs, potential savings, carbon reduction goals, and other NYC requirements.
That creates a more useful strategy than simply posting the grade and moving on.
Frequently Asked Questions
When will the 2026 NYC energy grade be available?
The 2026 Building Energy Efficiency Rating label will be available beginning October 1, 2026. Covered building owners must display it no later than October 31, 2026.
What is a good NYC energy grade?
An A or B generally indicates stronger ENERGY STAR performance. An A requires a score of at least 85, while a B requires a score from 70 to 84.
What does a D energy grade mean in NYC?
A D means the building has an ENERGY STAR score below 55. It is a sign that the property should be reviewed for energy efficiency opportunities.
What does an F energy grade mean?
An F means required benchmarking information was not submitted. It should be treated as a compliance issue and investigated promptly.
Is the NYC energy grade the same as Local Law 97 compliance?
No. LL33 energy grades are based on ENERGY STAR performance, while LL97 focuses on greenhouse gas emissions limits. The two requirements should be evaluated separately but managed as part of an overall building energy strategy.
Final Thoughts
Your NYC energy grade is more than a label on a wall.
It is an annual snapshot of how your building performs and a useful opportunity to identify energy waste, reduce operating costs, improve comfort, and prepare for increasingly demanding building energy requirements.
As October 2026 approaches, building owners should confirm their benchmarking information, prepare to display the new label, review changes in their energy score, and investigate opportunities for improvement.
If your building receives a C or D, use the result as a starting point rather than a final judgment. If it receives an F, address the underlying benchmarking issue immediately.
Most importantly, connect your energy grade with a broader plan for energy efficiency and carbon reduction.
The buildings that treat annual energy reporting as a source of actionable information, rather than just another compliance task, will be better positioned for the changing NYC regulatory environment.
