New Jersey

Note: Prior to participation the in SmartStart Buildings New Construction and Retrofits Program, municipalities are eligible to participate in the separate Local Government Energy Audit Program which will subsidize 75% of the initial cost of an energy audit for local government buildings. Energy efficiency improvements identified in the audit may be eligible for the SmartStart Buildings Program incentives described below.  
 
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. The program has three main project categories: new commercial/industrial construction, commercial/industrial retrofits, and schools. 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. Incentives for new construction are only available for projects within New Jersey Smart Growth* areas while retrofit incentives are available to all commercial and industrial customers as described above. Public schools are exempt from the Smart Growth requirement for new construction, as are building expansions and replacements that meet certain criteria. New Jersey SmartStart Buildings receives its funding through New Jersey's Societal Benefits Charge (SBC). The incentive offering is comprised of a combination of technical design assistance, prescriptive equipment rebates, and custom improvements that save energy.  
 
Effective January 28, 2008 all commercial and industrial applicants must apply for and receive a Tax Clearance Certificate from the New Jersey Division of Taxation before they can receive financial assistance. The objective of this new requirement is to ensure that recipients of taxpayer funded assistance are in full compliance with their state tax obligations.  
 
Customers considering large projects (over 50,000 sq.ft.) can receive Comprehensive Design Support which involves pre-design brainstorming sessions, design simulation and screening, and detailed analysis of energy-efficiency measures. Larger projects already beyond the conceptual stage can receive Modified Design Support, a streamlined process incorporating incentives and design support to encourage efficiency improvements for one or more electric end-use applications. Projects participating in either Comprehensive Design Support or Modified Design Support may qualify for an added bonus by installing multiple energy-efficient measures. This Multiple Measures Bonus adds 15% to what the customer would be entitled to for each fixed prescriptive rebate or custom measure incentive. Projects smaller than 50,000 square feet are eligible to receive no cost technical assistance, including plan reviews, recommendations, and assistance with prescriptive incentive applications (see below).  
 
In addition to the design incentives and technical support available through New Jersey SmartStart Buildings, financial incentives for qualifying equipment are also available. Rebates are provided for HVAC equipment, lighting, premium motors, natural gas water heaters, variable frequency drives, and custom measures approved by the participating utility. The rebate amounts are all determined by the equipment type, size and/or efficiency level. For 2010 custom 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. Effective February 1, 2010, 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.  
 
To participate in this program, customers must submit a properly completed application package consisting of an application and technology worksheet (where appropriate) to the NJ utility that serves the location of the proposed project. The Utility 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 submittal of an application. Outside of certain limited circumstances (see program website for details) pre-approval is required prior to the installation of any equipment.  
 
*Click here to use the New Jersey Housing and Mortgage Finance Agency Smart Growth Locator tool.