The New Jersey Board of Public Utilities, in conjunction with New Jersey utilities, offers the ENERGY STAR Homes Program, with incentives available to builders who construct homes that are 15% more efficient than homes built to the 2006 International Energy Conservation Code (IECC 2006). In order to achieve this classification, a home must score 85 or less out of a possible 100 points on the Home Energy Rating Scale (HERS). Homes that are built anywhere in New Jersey can qualify for the ENERGY STAR home designation, but only homes in the designated New Jersey Smart Growth areas can qualify for the financial incentives.
Builders can qualify for one of several incentive structures under this program. The basic incentive structure offers the builder a base amount which depends on the type of residence (single-family or multi-family) and an additional incentive per square foot of the house. Base incentives are broken into three Tiers as follows:
- Tier I: Must be 4,000 square feet or less and meet ENERGY STAR criteria (HERS of 85 or less) and other minimum mandatory requirements. Incentive limited to $2,900.
- Tier II: HERS of 65 or less; all homes more than 4,000 square feet must meet this criteria to qualify for incentives.
- Tier III: Customized performance at or approaching Net-Zero Energy
An ENERGY STAR rated home is required to have at least three ENERGY STAR labeled hard-wired lighting fixtures, but additional fixtures may qualify for incentives. Supplemental incentives may be available for energy efficient lighting and appliances through the ENERGY STAR Homes or other New Jersey Office of Clean Energy programs. Effective January 28, 2008 building owners of all multi-family new construction units must apply for a receive a
Tax Clearance Certificate from the New Jersey Division of Taxation in order to be eligible for financial assistance under this program. The objective of this new requirement is to ensure that all recipients of taxpayer funded support are in full compliance with their state tax obligations.
Interested builders should contact the New Jersey ENERGY STAR Homes Program. Current incentive amounts are located at the program website.
