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New Jersey

New Jersey

Incentives/Policies for Renewables & Efficiency

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New Jersey SmartStart Buildings - New Construction and Retrofits   

Last DSIRE Review: 10/08/2014
Program Overview:
State: New Jersey
Incentive Type: State Rebate Program
Eligible Efficiency Technologies: Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Compressed air, Energy Mgmt. Systems/Building Controls, Motors, Motor VFDs, Custom/Others pending approval, Commercial Refrigeration Equipment, Food Service Equipment
Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Fed. Government, Institutional
Amount:Varies widely by equipment type, size and efficiency.
Maximum Incentive:General: incentives may be limited to $500,000 per utility account per year
Custom Measures: limited to lesser of $0.16/kWh or $1.60/therm saved annually; 50% of total costs; or buydown to a 1-year payback period
Eligible System Size:Custom measures: Minimum first-year savings of 75,000 kWh or 1,500 therms
Equipment Requirements:Vary by measure
Funding Source:New Jersey Societal Benefits Charge (public benefits fund)
Program Budget:Retrofits: $46.2 million (FY2014), $53.3 million (FY2015)
New Construction: $1.8 million (FY2014), $3.7 million (FY2015)
Web Site:

NOTE: Effective November 1, 2014, TRC Energy Services will only accept applications dated October 1st 2014, through June 30, 2015.

New Jersey SmartStart Buildings is a program sponsored by the New Jersey Board of Public Utilities in partnership with New Jersey’s gas and electric utilities. New Jersey SmartStart Buildings receives its funding through New Jersey's Societal Benefits Charge (SBC). The incentive offering is comprised of a combination of prescriptive equipment rebates and incentives for custom improvements that provide energy savings. The program is managed by TRC Energy Services under supervision of the NJ Board of Public Utilities.


The incentives provided through this program are available to non-residential retail electric and/or gas service customers of the participating New Jersey utilities: Atlantic City Electric, Jersey Central Power & Light, Rockland Electric Company, New Jersey Natural Gas, Elizabethtown Gas, PSE&G, and South Jersey Gas.

The program requires pre-approval for most of the energy efficiency incentives. To participate in this program, customers must submit a properly completed application package consisting of an application and technology worksheet (where appropriate) to the program manager. The program manager will then review the application package to determine if the project is eligible for a rebate. If eligible, the customer will receive an approval letter with the estimated incentive amount and the date by which the equipment must be purchased and installed in order for the approval to remain in effect. Upon receipt of the approval letter, the customer may then proceed to install the equipment listed on the approved application. Incentives may be available for equipment purchased, but not installed, up to 12 months prior to the submission of an application, although the purchaser does so at their own risk.

Program Description

Incentives are categorized into two main project categories: New Construction and Retrofits. New Construction component offers financial incentives and technical support for new construction projects. Retrofit program is targeted for replacing standard equipment with high efficiency alternatives. New Construction component offers financial incentives and technical support for new construction projects. Retrofit program is targeted for replacing standard equipment with high efficiency alternatives.

The program has both perspective and custom rebate for efficiency projects. Standard perceptive rebates are provided for HVAC equipment, lighting, premium motors, natural gas water heaters, variable frequency drives, and custom measures approved by the participating utility. Click here to view the list of equipment and amount of incentives are available. The rebate amounts are all determined by the equipment type, size and/or efficiency level.

Custom incentives for electricity and natural gas measures are limited to the lesser of: $0.16/annual kWh or $1.60/annual therm saved; 50% of total project costs; or an incentive level that results in a 1-year payback period. In order to qualify for custom measure incentives a project must have a minimum first-year energy savings of 75,000 kilowatt-hours (kWh) for custom electric measures or 1,500 therms for custom gas measures, and have an internal rate of return of 10% or greater. These restrictions may be waived on a case-by-case basis if the project is within 10% of the requirements.

Hurricane Sandy relief plan

Customers within the designated areas that were damaged by Hurricane Sandy or can demonstrate storm related damages can qualify for additional incentives under this program. The Hurricane Sandy relief plan provides 50% increase in all perceptive incentives, performance lighting, extended deadline till June 30 for motor replacement and others. The incentives are available for all equipment purchases on or after October 29, 2012 and must be received by the Market Manager before June 30, 2014. Click here for more information regarding Hurricane Sandy relief plan.



  New Jersey Clean Energy Program - Commercial & Industrial Market Manager
c/o TRC Energy Services
900 Route 9 North, Suite 104
Woodbridge, NJ 07095
Phone: (866) 657-6278
Fax: (732) 855-0422
Web Site:
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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 2014 - 2015 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.