AvalonBay Communities, one of the largest apartment landlords in the U.S., is piloting software from startup Parity to curb natural gas usage in its New York City properties. The move comes as the city’s Local Law 97 requires tens of thousands of large buildings to slash planet-warming pollution to net-zero by 2050.
The software focuses on optimizing heating and hot water systems, which typically rely on fossil fuels. By analyzing real-time data and adjusting operations, it aims to cut gas consumption without requiring immediate full-scale equipment replacements. Early results from pilot buildings show measurable reductions in energy use, though specific emissions figures have not been disclosed.
AvalonBay has not publicly detailed the investment behind the software deployment, but the economics of retrofitting existing buildings are significant. New York City’s building sector accounts for roughly 70% of the city’s greenhouse gas emissions, making efficiency upgrades a high-stakes market for investors and technology providers.
Local Law 97 sets progressively stricter carbon caps starting in 2024, with penalties for non-compliance. The law aligns with broader climate goals under the Paris Agreement, though its local focus puts New York at the forefront of municipal building decarbonization efforts. Other cities are watching closely as a potential model.
Critics argue that software-based optimization alone cannot achieve net-zero without eventually replacing gas boilers and furnaces with electric heat pumps or other clean alternatives. AvalonBay’s approach may buy time but risks delaying the deeper retrofits needed for full compliance.