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New Jersey’s Clean Energy Program

“Your Power to Save”

Triad Associates


New Jersey’s Energy Master Plan proposes to reduce energy use by 20 percent by the year 2020.  According to the Plan, “Unless New Jersey acts decisively to reduce energy demand and increase the supply of low carbon emitting, reliable and reasonably priced energy, the state faces an increasingly costly and unsustainable energy future.”  To assist in achieving this reduction, the State of NJ has developed the Clean Energy Program, which is administered by the NJ Board of Public Utilities.  The Clean Energy program offers financial incentives to promote energy efficiency and renewable energy statewide.  The program is broken down into three categories:  Residential, Commercial, Industrial and Local Government, and Renewable Energy.  The following provides a snapshot of the various programs offered by BPU in New Jersey’s Clean Energy Program.  Within these programs you will find financial incentives and technical assistance that can be utilized at the local government level along with incentives to pass along to your constituents and local businesses.

Residential Programs:

  • COOLAdvantage and WARMAdvantage – These programs provide cash rebates for energy efficient heating and cooling equipment such as central air conditioners, heat pumps, furnaces, boilers or water heaters.  Proper system sizing and installation are additional factors that affect operating efficiency and must also be met in order to qualify for the rebates.  COOLAdvantage customers must be current residential electric customers of Atlantic City Electric, Jersey Central Power and Light, Public Service Electric and Gas or Rockland Electric. WARMAdvantage customers must be current residential gas customers of Elizabethtown Gas, New Jersey Natural Gas, Public Service Electric and Gas or South Jersey Gas.

  • Home Performance with ENERGY STARFor the cost of $125, a certified technician will assess your home from top to bottom to determine how you can reduce energy costs and your carbon footprint.  After the assessment, you will receive a report listing recommended measures, along with financial incentives available to help you pay for the recommended improvement work.  Residents will be eligible for up to $1,000 in free air sealing services.  The full list of incentives can be found at  These incentives will soon be available to all residents, regardless of their electricity provider, as well as all oil and propane heat customers.

  • Tax Credits – Residents installing certain ENERGY STAR qualified products are eligible for a tax credit of 30 percent of the cost.  Most home improvements can qualify for a maximum total credit of $1,500.  A summary of tax credits for homeowners is listed at

  • Solar Domestic Hot Water Pilot Program – A $1,200 incentive is now available to New Jersey residents with electric hot water heating that install qualifying solar hot water systems to replace or to supplement their existing system.  To be eligible, the system must be installed in the service areas of Public Service Electric & Gas (PSE&G), Jersey Central Power & Light (JCP&L), Atlantic City Electric (ACE), or Rockland Electric Company (RECO). Additionally, the system must be installed before December 31, 2009, though the time may be extended, depending on participation levels.

  • Refrigerator/Freezer Recycling Program – This program will provide you with a $30 cash incentive for recycling your old refrigerator/freezer.  Additionally, you can schedule a free pickup of the appliance at your home.  Customers of municipal electric utilities do not qualify for this program.  According to the Clean Energy Program, recycling 20,000 older refrigerators or freezers would result in the avoidance of CO2 emissions equal to removing 40,000 cars from the road for one year.  


Commercial, Industrial and Local Government Programs:

  • Community Partners Initiative – By registering as a Community Partner, municipalities will receive technical assistance and financial incentives to help their communities reduce their carbon footprint.   Community Partners receive support in their efforts to set clean energy goals, develop outreach plans and educate residents about the economic and environmental benefits of clean energy and simple climate change solutions.  They can also receive assistance with their Local Government Energy Audit.  A list of financial incentives can be found at

  • Direct Install – This program will be available soon for commercial and industrial facilities with a peak demand of less than 200kW.  Through Direct Install, businesses can receive an energy assessment which will illustrate the need to replace existing equipment with high efficiency alternatives.  Financial incentives of up to 80 percent of the installed cost of the equipment will be available.

  • Local Government Energy Audit – The NJ Clean Energy Program will provide an audit for buildings owned by local governments as well as state colleges and universities.  The program targets municipal and local government owned facilities including offices, courtrooms, town halls, police and fire stations, sanitation buildings, transportation structures, schools and community centers.  75 percent of the cost of the audit will be covered automatically. The audit will provide a list of recommended, cost-effective energy efficiency measures and facility upgrades.  If the net cost of the installed measures recommended by the audit, after applying eligible NJ SmartStart Buildings incentives, exceeds the remaining cost of the audit, then that additional 25 percent will also be paid by the program.  The complete package of guidelines and application forms is located at

  • New Jersey SmartStart Buildings – This program provides a range of support measures at no cost for new construction and additions, renovations, remodeling and equipment replacement.  Pre-approval is required.  Incentives for new construction are available only in designated Smart Growth areas.  The program provides design support for large projects over 50,000 square feet in the conceptual stage.  It also provides technical assistance for smaller projects less than 50,000 square feet and projects past the preliminary design and bidding stages.  Additionally, financial incentives are available to offset some or all of the added cost to purchase qualifying energy-efficient equipment.  These incentives are dependent on the type, size and efficiency of the equipment.  More information, applications and a list of the financial incentives can be found at

  • Pay For Performance Program – This is a comprehensive whole-building approach to energy efficiency in existing commercial and industrial buildings.  Existing buildings with an average annual peak demand of over 200kW are eligible to participate, including hospitals, hotels, casinos, large office buildings, multi-family buildings, supermarkets, manufacturing facilities, schools, shopping malls and restaurants.  Financial incentives will be awarded upon the completion of these milestones:

    • Submittal of an Energy Reduction Plan prepared by an approved Program Partner;

    • Installation of recommended measures from the plan; and

    • Completion of a Measurement and Verification Report.


More energy savings addressed equals more financial incentives.  For program applications and incentives forms visit

  • EDA Programs – The New Jersey Economic Development Authority offers Clean Energy Solutions Loan/Grants to promote energy efficiency.  Up to $5 million in interest-free loans and grants are available for commercial, industrial and institutional entities “going green”.  The criterion for assistance is based on the environmental and economic development impact of the project.  Funding can be used to purchase fixed assets or for a new state-of-the-art efficient electric generation facility.


Renewable Energy Programs

As you can see, New Jersey’s Clean Energy Program contains a large variety of financial incentives and technical assistance programs for residents, businesses and local government agencies.  Visit the website at to see how these programs can assist you with your renewable energy project.  Further, you can also pass along program information to your residents and businesses to help them save money while reducing their carbon footprint.


Triad Associates is currently the League’s Grant Consulting Firm. Their firm, which is known for its expertise in community and economic development, including strategic planning, redevelopment, acquisition, relocation and funding, has brought diverse plans and projects to life by generating more than $580,000,000 for over 120 public, private and nonprofit clients throughout the Northeast region since 1978. Every member of the Triad team is personally committed and dedicated to the success of its clients and the projects that benefit communities.


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