Aashish Dattani, Sriram Kalyanaraman and Vinayshankar Kulkarni of the IIT team were declared winners of the competition by City Mayor Michael R Bloomberg on Thursday, Jan 7.
The IIT team devised a new system to allow utility companies and energy producers to store and distribute energy through remote sites across the five boroughs safely and efficiently.
The winning team, who call their venture Greenext Technology Solutions, will receive a $20,000 cash prize.
After announcing the winners, Bloomberg said that the US government should make it easier for foreigners to come to New York to work.
"No one can say for sure whether the finalists' ideas will translate into successful job-creating businesses," Bloomberg said.
"What a shame, though, if they and countless others are denied the opportunity even to try," he added.