A solar project in New Jersey by Solar Landscape.
The New Jersey Economic Development Authority (NJEDA) recently approved a new program aimed at reducing greenhouse gas emissions and energy costs. The Reducing Emissions through Retrofits, Optimization, Fuel Switching and Innovative Technologies (RETROFIT NJ) Grant Program will support versatile, large-scale retrofit projects that enable holistic energy improvements, including solar and storage, for buildings, campuses and multi-building facilities. The new funding expands the efforts of existing funding NJ Cool program.
“New Jersey is leading the nation in building a cleaner and more resilient future,” said Governor Phil Murphy. “The RETROFIT NJ Grant Program reinforces our commitment to reducing emissions, lowering energy costs and driving innovation in our state. By investing in retrofit projects, we not only protect our environment, but we also create good-paying jobs and lower costs for families and businesses.”
RETROFIT NJ will offer grants between $2.5 million and $12.5 million to commercial, industrial and institutional building owners undertaking renovation projects with a minimum total project cost of $5 million. Eligible projects must include at least three clean energy or electrification components, such as solar, energy storage, heating electrification, refrigerant replacement and energy efficiency improvements. RETROFIT NJ will also provide support for projects that implement thermal energy networks (TENs), an emerging technology that can significantly reduce emissions across multiple buildings. This program is the largest government construction grant program available to TENs in the country, with up to $12.5 million per project, demonstrating New Jersey’s strong leadership in advancing advanced technology solutions to climate change.
“New Jersey is committed to combating climate change through impactful programs that aim to reduce our carbon footprint and promote a greener state,” said Kathleen Coviello, NJEDA chief economic transformation officer. “With today’s approval of the RETROFIT NJ program, we are expanding access to energy efficient upgrades, strengthening our communities and economy, while helping businesses reduce energy consumption and save money.”
Currently the NJ Cool program provides financial assistance to commercial, industrial, and institutional building owners and tenants undertaking retrofit construction projects that reduce operational greenhouse gas emissions from existing buildings in State-Designated Congested Communities (OBCs) and adjacent community blocks.
The RETROFIT NJ program will leverage $75 million in Regional Greenhouse Gas Initiative (RGGI) funds, with 50% of the funding pool earmarked for applications submitted for projects in OBCs and/or for institutional applicants for a period of one year. Funding from the program covers both hard and soft project costs, including design, engineering, equipment, construction and commissioning. Non-profit and institutional applicants receive up to 60% reimbursement, while for-profit commercial entities are eligible for up to 50% reimbursement, with an additional 5% bonus for all projects in OBCs. Applications are accepted on a rolling basis with phased disbursements.
The application for RETROFIT NJ is expected to open in the first quarter of 2026.
News item from the NJEDA
