Cool Roofs: Incentive Programs

Cool Roofs

Creating an Incentive Program

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Cool Roofs: Incentive Programs

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MAPC >> Resources >> Clean Energy >> Cool Roofs: Incentive Programs

Creating a Cool Roofs Incentive Program.

This page offers guidance for municipal planners interested in creating a cool roof program for private building owners to install cool roofs including residential, commercial, and institutional buildings.

MAPC conducted interviews with managers from cool roof incentive programs from across the country, including New York City, Los Angeles, Philadelphia, and Louisville, to learn more about the programs’ structure, funding, partnerships, and lessons learned along the way. The findings are summarized in the Program Structure section below.

Go to:

Program Structure
Program Funding
Community Engagement and Partners
Incorporating Equity
Guidance from Program Managers
Case Studies

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Program Structure

Rebates A one dollar bill.

Municipalities can structure their cool roof program as a rebate based on square footage and building type.

Examples | Louisville and Los Angeles

The City of Louisville has a Cool Roof Incentive Program offering rebates of $1 per square foot of cool roof for up to $2000 for residential buildings (10 units or less) and up to $5000 for condos (10+ units). Non-residential buildings can receive $1 per square foot of new cool roof for up to $5000 for low-sloped roofs and up to $10,000 for steep-sloped roofs.

The City of Los Angeles’s Consumer Rebate Program offers a two-tiered incentive for single and multifamily buildings with a base discount of $0.20 per square foot and an enhanced rebate at $0.60. The discount is calculated by the solar reflectance of new roofing material, as defined by the Cool Roof Rating Council’s directory of rated products.

Grants A dollar sign in a circle over a horizontal line.

Municipalities can also offer grants to directly support property owners in procuring cool roofs.

Examples | San Antonio and New York City

The City of San Antonio’s Under 1 Roof Program offers a one-time grant to homeowners to assist in replacing worn or damaged shingles with highly reflexive energy efficient shingles. Homes above 1,700 sq. ft. are subject to approval. Homeowners who participate in the program must maintain ownership and occupancy for five years after project completion.

With a goal of installing one million sq. ft. of rooftops per year, New York City’s Cool Roofs Program offers no- or low-cost installations. No-cost installations are available to non-profits, affordable and low-income housing, select cooperatively owned housing community/recreation centers, schools, hospitals and medical centers, and cultural centers. For all other building owners, the program provides no-cost labor, technical assistance, and materials, if the building owner covers the cost of coating (discounts are available from vendors enrolled in the Cool Roofs program).

Loans A heart over an open palmed hand.

Notably for municipal light plant (MLP) communities, loans are another way to financially assist property owners to install cool roofs.

Examples | Sacramento and Philadelphia

The Sacramento Municipal Utility District (SMUD) offers loan financing options for eligible customers. The program can finance up to 100% of energy efficiency projects, including cool roof upgrades.

In 2010, Philadelphia offered a loan fund through their sustainability plan for any energy efficiency projects catered to residences and small businesses, setting aside a pool of funds specifically for cool roofs and with a nonprofit are hosting job trainings.

Program Funding

Federal Funding
Municipalities have funded their programs from federal sources, such as the Department of Energy’s (DOE) Energy Efficiency Conservation Block Grant (EECBG).

The City of Philadelphia reserved approximately $500,000 of its EECBG Retrofit Ramp-Up Grant for a cool roof neighborhood pilot to install cool roofs on roughly 250 homes, or 5 blocks.
The City of Los Angeles kick-started their cool roofs program through the Energy Efficiency Conservation Block Grant (EECBG) but after a few years incorporated the program into the city budget to continue their program.

City Budget
Some municipalities have sourced the program cost from their city’s budget.

The City of Louisville holds $100,000 of the Mayor’s Office of Sustainability’s annual budget for its cool roof rebate program. The budget can roll over into the next year if not fully spent.
New York City’s funding is also directly incorporated into the Mayor's Office of Recovery and Resiliency annual budget, though they are noted to be additional sources of funding such as philanthropies.

Community Engagement and Partners

Stakeholder/Partner Engagement
Successful cool roof programs have community partners supporting educational awareness and program outreach.

Los Angeles partners with Climate Resolve, a nonprofit climate organization to assist with stakeholder meetings and highlighting roofing products.
Philadelphia collaborates with the Energy Coordinating Agency, a nonprofit delivering energy efficiency services for low-income households through Neighborhood Energy Centers throughout the city.
New York City targets outreach to community groups that work with building owners and job trainees, concentrating their efforts in industrial areas since UHIs are concentrated there.

Workforce Development
Municipalities can use cool roofs programs as an opportunity to build sustainable careers as part of a just transition, ensuring the jobs generated go to those who need it most. Green jobs are a growing market but those who need the jobs most are missing the training necessary to fulfill role requirements. By working with a local organization or creating a job training program, cities can build pathways for all to benefit from the clean energy transition.

Philadelphia’s partners, the Energy Coordinating Agency, hosts the Knight Green Jobs Training Center to provide free training and certifications for un/underemployed young people, returning citizens, veterans, and older workers.
New York City partnered with the HOPE Program, a nonprofit providing transitional work opportunities through the CoolRoofs Program. They train participants to pursue fields in green construction, building maintenance, commercial driving & warehouse, and have support systems supplying them with professional clothing, meals, and mental health case management.

Incorporating Equity

Neighborhood Prioritization
Program managers should use a heat index and energy burden map to target and prioritize neighborhoods disproportionately affected by extreme heat. Resources should be targeted to areas and occupants most in need such as affordable housing developments.

Both the City of Philadelphia and New York City developed a heat vulnerability index to identify neighborhoods with the most heat-vulnerable residents and target program outreach and installations.
The City of Louisville sets aside half of their cool roof rebate program budget to install cool roofs on low-income homes.

Suitability Tool

Use MAPC's Cool Roofs Suitability Tool to prioritize neighborhoods in your municipality in heat islands and environmental justice communities.

Access the Tool

Guidance from Program Managers: Strategies for Success & Lessons Learned

Start Small Integrate into Existing Energy Programs As Feasible, Offer Point-of-Sale Incentives Collaborate with Vendors Educate Property Owners Raise Public Awareness Leverage Community Partners Roofing Products Debunk the Heating Penalty Track Progress

Start Small

Pilot the program at a smaller scale, such as small residential properties or a specific neighborhood block, to gain valuable insights before scaling up city- or town-wide.

For example, the San Antonio Under 1 Roof program launched as a pilot in 2016 with a budget for $200,000 and serving 10 families. By 2018, the program had grown to 5 other districts with a budget of $2.25 million. Roberto Triveño, Councilman at the time, stated, “What started out as a District 1 pilot program with a sliver of funding has grown into a multi-million-dollar program that assists folks across the city and helps combat rising urban temperatures while saving residents money.*

*National League of Cities (2019). Homeward Bound: The Road to Affordable Housing. Report. https://www.nlc.org/resource/homeward-bound-the-road-to-affordable-housing/

Integrate into Existing Energy Programs

As Feasible, Offer Point-of-Sale Incentives

Collaborate with Vendors

Maintain an open line of communication with roofers and other contractors. Inform them of the cool roof incentive program and encourage them to share program specifics with their clients. Use their input and feedback to inform any program updates to address potential concerns and unintended consequences. Maintaining trusted relationships can open opportunities for local contractors to get more consistent employment opportunities and streamline bureaucratic processes such as paperwork and sourcing materials.

New York City offers a list of vendors that provide discounts for cool roof customers, streamlining the process and lowering upfront costs. Having a standard group of trusted contractors allows them to build institutional knowledge of neighborhoods and best practices for implementing cool roofs.

Educate Property Owners

Raise Public Awareness

Cool roofs make for great photo-ops! Take photos during the cool roof installation process; publicize a cool roofs tracker (e.g., number and square footage of cool roofs installed); table at community-wide events; engage with public health professionals; and tie in cool roofs to other related energy, housing, or health programs. Roofs may be out-of-sight, out-of-mind, so having signage or information about an installed cool roof is important to raising awareness.

The City of Louisville circulated mail-in flyers with information about their cool roof program, targeting specific heat-vulnerable neighborhoods.

Tailor outreach materials separately for residential and non-residential audiences to ensure that the messaging is relevant and effective for each. Residential building owners may be more concerned with the immediate benefits of cool roofs; therefore, outreach for this group should emphasize energy savings, improved home comfort, and health benefits. Non-residential building owners, on the other hand, might be more focused on the long-term economic benefits, such as reduced operational costs, increased property value, and compliance with regulatory requirements (such as building energy use disclosure ordinances). For this audience, highlight how cool roofs can lead to significant energy cost reductions, extend the lifespan of roofing systems, and improve the performance of HVAC systems.

Leverage Community Partners

Roofing Products

While the cool roof market in New England is still nascent, the market and technology for cool roofs are rapidly growing and evolving with new options accommodating a variety of needs and environments. Speak with experts to determine the products that work best for your building types, and other factors in application guidelines and ordinance definitions.

The Cool Roof Rating Council’s Roof Directory rates roof materials by their solar reflectance properties. Building owners and contractors should use this resource to identify suitable cool roof products that meet specific reflectance criteria. For example, Los Angeles’ criteria for qualifying roofs in their rebate program is determined by the CRRC Directory.

Debunk the Heating Penalty

The “heating penalty” refers to a potential increase in heating bills in the winter months since the roof reflects more heat than it absorbs. While this may occur, the cost savings in the summer months typically significantly outweigh the penalty in the winter months. Additionally, our warming climate is resulting in milder winters and longer and hotter summers, further enhancing the value of cool roofs for our region. Offer clear information about the realities of the heating penalty in program materials to get ahead of potential concern from building owners.

Track Progress

Incentive Program Case Studies

Louisville, Kentucky

Program Type: Rebate

Program Overview
In 2016, the Office of Sustainability launched their Cool Roof Incentive Program offering rebates of $1 per sq. ft. of cool roof for property owners. There are maximum incentives for residential buildings and non-residential buildings, ranging from $2,000 to $10,000. Incentives are limited to a maximum of three properties per property owner per fiscal year.

Eligible Applicants
Any residential or non-residential building owner can apply; buildings located in specific districts and identified as heat islands are prioritized.

Eligible Buildings
New or replacement roofs for owners of residential and non-residential buildings. The roof must be over an air-conditioned space. Low Slope roofs must have an initial solar reflectance of >=0.65; steep slope roofs must have an initial solar reflectance of >=0.25.

Program Manager
City's Office of Sustainability

Partners
Not applicable

Funding
The Office of Sustainability reserves $100,000 of its annual budget for the cool roof program (funds can roll over) and the program runs until the funds are depleted.

Results and Monitoring
As of February 2024, there have been 324 applicants and 1.19 million sq ft of cool roofs installed in the City with 62% of funding funneled to property owners in priority areas.

Link to Program Application

San Antonio, Texas

Program Type: Grant

Program Overview
Launched in 2016, San Antonio’s Under 1 Roof Initiative offers single-family homeowners a one-time grant to replace aging and damaged roofs with a new, energy-efficient, white-colored roof. Grants may not exceed $14,000; program participants must follow a 5-year restrictive covenant requiring homeowners to maintain ownership and occupancy.

Eligible Applicants
Household gross income must not exceed 80% of the Area Median Income, unless the homeowner is over 62 years old, disabled, or a veteran.

Eligible Buildings
Single-family residential properties that are <1700 sq ft. (Properties <1700 sq ft. are subject to approval). Detached structures are not eligible (e.g., sheds, detached garages, etc.). Must not have metal roof, gravel roof, clay tiles, or wood singles.

Program Manager
City’s Neighborhood Housing Services Department

Partners
Municipal utility

Funding
The program launched as a pilot in 2016 with $200,000 in funding. Two years later, the program expanded to $2.25 million. The program is funded by the City but has also received donations from local philanthropists as well.

Results and Monitoring
As of 2019, the program installed over 500 cool roofs. Program managers indicated that the efficiency of implementation has improved, leading to a roughly 30% decrease in the price of installation per roof.

Link to Program Application

Los Angeles, California

Program Type: Rebate

Program Overview
Since 2010, LA’s Department of Water and Power (LADWP) cool roof rebate program has helped single and multi-family residential customers comply with cool roofs requirements.* As of 2022, the base rebate is $0.20/sf and the enhanced rebate is $0.60/sf, as determined by the degree of solar reflectivity in the cool roof material.

*ADWP’s ‘Cool Roof’ Rebates Reduce Costs and Save Energy (ladwpnews.com)

Eligible Applicants
Single and multi-family residential buildings.

Eligible Buildings
To qualify as a cool roof under the LADWP Consumer Rebate Program, the roofing material must: have CRRC 3-year SRI value ≥ 78 for low-slope (≤2:12) or ≥ 20 for steep-slope (>2:12) roofs; for the enhanced rebate, have CRRC 3-year SRI value ≥ 85 for low-slope (≤2:12) or ≥ 35 for steep-slope (>2:12) roofs.

Program Manager
City’s Department of Water and Power

Partners
California Energy Commission, Climate Resolve

Funding
For the first few years, the program was funded via an EECBG grant, and was then incorporated into the City budget.

Results and Monitoring
In the first 4 years of the program, the rebates have covered 700,000 sq feet of residential cool roof installation.*

*LADWP’s ‘Cool Roof’ Rebates Reduce Costs and Save Energy (ladwpnews.com)

Link to Program Application

New York City, New York

Program Type: Grant and Discount

Program Overview
New York City offers no- and low-cost cool roof installations for qualifying sites. The program was initially launched in 2009 as a volunteer-based program, and then transitioned in 2015 into a workforce development program. The program has an annual goal of installing one million square feet of cool rooftops.

Eligible Applicants
No-cost installations offered to: non-profits, affordable/low-income housing, community or recreational centers, schools/colleges/universities, hospitals or medical care clinics, museums/theaters/other cultural centers, or select cooperatively owned housing. Low-cost installations offered to: building owners that can cover the cost of the labor.

Eligible Buildings
Buildings must have a flat rooftop in good condition with minimal cracking, easily accessible (no hatch, ladder, or window access), free of dangerous machinery or equipment, a 3’8’’ parapet, and must be made of one of the following: granulated cap sheet, asphalt, modified bitumen, or bitumen.

Program Manager
Mayor’s Office of Climate and Environmental Justice

Partners

NYC Department of Small Business Services: Workforce1 Industrial & Transportation Career Center
NYC contract a non-profit each year to administer the program, such as the HOPE Program (a nonprofit focused on workforce development in green careers) and partners with a green jobs training program to provide supplemental labor.

Funding
Funding for the Cool Roofs program is included in the City budget. The Mayor’s Office coordinates volunteers through NYC Service to participate in the program. To date, more than 5,600 volunteers have participated including corporate sponsors.

Results and Monitoring
From 2009 – 2016, the program coated nearly 7 million sq ft of cool roofs.*

*https://coolroofs.org/documents/NYC_CoolRoofs_6-14-17_Presentation.pdf

Link to Program Application