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New Jersey

New Jersey

Incentives/Policies for Energy Efficiency

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Home Performance with Energy Star Program   

Last DSIRE Review: 07/22/2012
Program Overview:
State: New Jersey
Incentive Type: State Loan Program
Eligible Efficiency Technologies: Water Heaters, Furnaces , Boilers, Heat pumps, Central Air conditioners, Heat recovery, Programmable Thermostats, Duct/Air sealing, Building Insulation, Comprehensive Measures/Whole Building, Custom/Others pending approval, LED Lighting, Ventilation, Safety Measures, Heat Pump Water Heaters
Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Residential, Multi-Family Residential, Low-Income Residential
Amount:Energy Savings From 10% - 19.99%: $2,000 and 0% loan up to $5,000 where utility loans are not available (single-family); $500/unit (multi-family)
Energy Savings From 20% - 24.99%: $4,000 and 0% loan up to $10,000 where utility loans are not available (single-family); $1,000 per unit (multi-family)
Energy Savings Greater than 25%: $5,000 and 0% interest loan up to $10,000 where utility loans are not available (single family); $1,500 per unit (multi-family)
Maximum Incentive:Loans (single-family only): $5,000 (Tier II) or $10,000 (Tier III)
Rebates (single family or multi-family): 50% of cost
Terms:0% interest loans with terms of 3, 5, 7, or 10 years offered for single-family projects
Funding Source:New Jersey Societal Benefits Charge (public benefits fund); State Energy Program (SEP)
Program Budget:$23.2 million (new 2012 funding)
Web Site: http://www.njcleanenergy.com/residential/programs/home-performanc...
Summary:

The New Jersey Board of Public Utilities (NJ BPU) offers a Home Performance with Energy Star Program for residents that want to improve the energy efficiency of their homes. The program is set up to provide incentives that lower the ultimate cost to consumers for the installation of energy efficiency measures identified in a comprehensive home assessment. Qualifying measures may include HVAC improvements, air sealing, the installation of better insulation, and domestic hot water systems. Appliances, lighting, doors, and windows are not eligible measures under the current program rules. This program was formerly only available for 1-4 family homes; however, it was revised in 2011 to also provide incentives for small multi-family dwellings that have 5 or more units, are three stories or less, have single ownership, and where total building energy use data is accessible.

In order to receive incentives from this program, eligible work must be performed by a BPI-certified contractor who is a registered Trade Ally of the New Jersey Clean Energy Program. Program funding is provided through the New Jersey Societal Benefits Charge (SBC) and the State Energy Program (SEP). The use of SEP funding allows the program to be serve oil, propane, and municipal electric customers through June 30, 2013. Please see the program website for further details.

Single-Family Buildings
The homeowner may receive both a cash rebate and a low-interest loan for the installation of appropriate improvements identified in the home assessment. The incentive schedule is as follows:

  • Tier I - Home Assessment: A Home Assessment is required in order to be eligible for other incentives, but no incentives are available for the Home Assessment itself.
  • Tier II - Total Energy Savings from 10% - 19.99%: The customer must install air sealing measures, with the option of installing insulation, duct sealing, duct sealing insulation, and water heater measures. The available incentive is $2,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $5,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).
  • Tier III (Level I) - Total Energy Savings from 20% - 24.99%: The customer must install a minimum of 2 measures including air sealing from the list of program eligible measures. The available incentive is $4,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $10,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).
  • Tier III (Level II) - Total Energy Savings Greater than 25%: The customer must install a minimum of 2 measures including air sealing from the list of program eligible measures. The available incentive is $5,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $10,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).

It is important to note that while incentives are available for HVAC equipment and water heaters under the separate WarmAdvantage and CoolAdvantage incentive programs, participants may not receive multiple incentives for the same equipment.

Multi-Family Buildings
In order to participate in this program, the improvements must consider a whole-building approach. Individual dwelling units within a building are not eligible independently of the larger development. The contractor will work with program personnel to ensure a proper project assessment and approval process. The incentive schedule is as follows:

  • Tier I - Total Energy Savings from 10% - 19.99%: The available incentive is $500 per dwelling unit, not to exceed 50% of the cost of the improvements.
  • Tier II - Total Energy Savings from 20% - 24.99%: The available incentive is $1,000 per dwelling unit, not to exceed 50% of the cost of the improvements.
  • Tier III - Total Energy Savings Greater than 25%: The available incentive is $1,500 per dwelling unit, not to exceed 50% of the cost of the improvements.

In addition to the state program described above, some New Jersey electric and natural gas utilities administer supplemental energy efficiency programs for their customers. Prospective participants should contact their utility to see if additional incentives are available.


 
Contact:
  New Jersey Clean Energy Program - Residential Market Manager
c/o Honeywell
145 Route 46 West
Wayne, NJ 07470
Phone: (866) 657-6278
Fax: (508) 672-7910
Web Site: http://www.njcleanenergy.com/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.