New Jersey

Note: This program is now available to all New Jersey residents, including customers of the state's municipal electric utilities and those that use oil or propane as a heating fuel. This expansion is made possible by the use of ARRA funds as a supplement to normal program funding through the New Jersey Societal Benefits Charge (SBC). Please see the program website for further details.  
 
The New Jersey Board of Public Utilities (NJ BPU) offers a Home Performance with Energy Star Program for homeowners that want to improve the energy efficiency of their homes. Qualifying measures include HVAC improvements, air sealing, appliance upgrades and the installation of better insulation, as well as safety measures like radon and smoke detectors. In order to receive incentives from this program, eligible work must be performed by a BPI-certified contractor.  
 
The program is set up to provide three potential separate incentives to lower the ultimate cost to consumers for a home energy assessment, air sealing improvements, and the installation of energy efficiency measures identified in the home assessment. Details of each incentive are as follows:

• Home Energy Assessment: The Program provides a home energy assessment for $125 (a $300 value) and will also provide coupons for 10 free compact fluorescent light bulbs at no cost to the consumer  
  
• Air Sealing: Based an analysis of air sealing opportunities, the Program will offer up to $1,000 of free air sealing work at no cost to the consumer if opportunities exist and no health and safety issues were found during the audit.  
  
• Energy Efficiency Measure Installation: The homeowner has the option of receiving a cash rebate and/or a low-interest loan for the installation of appropriate improvements identified in the home assessment. Improvements resulting in an energy savings of at least 5% but less than 25% of home energy consumption may receive a rebate of 10% of the costs up to $2,000 or a 5.99% fixed-rate loan. Improvements resulting in an energy savings of 25% or more of home energy consumption may receive a rebate of 50% of the costs up to $10,000 and a 0% interest loan.

In addition, the completion of at least $2,000 worth of improvements within three months of the home assessment entitles the homeowner to a refund of the $125 home assessment fee. Customers that choose the cash incentive must make arrangements for payment with their contractor. Customers that elect to arrange a loan through the program must apply through Energy Finance Solutions. Low interest loans through Energy Finance Solutions are available for amounts of $2,500 to $20,000 over terms of 3, 5, 7, and 10 years. For 0% interest loans, the maximum loan amount is reduced to $10,000 based on an assumption that the applicant will also be eligible for the 50% rebate.  
 
Expanded incentives are available for applicants with incomes from 225% and 400% of the federal poverty line according to household size. For income qualified applicants, improvements that result in energy savings from 5% to 25% are eligible for a rebate of 50% of the cost of the improvements up to $10,000, and a 0% interest loan. Improvements that result in an energy savings of more than 25% are eligible for a rebate of 75% of the cost of the improvements up to $10,000 as well as the 0% interest loan.  
 
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.  
 
Building contractors have the opportunity for incentives through the Home Performance with Energy Star Program. Contractors that are certified and accredited by the Building Performance Institute can qualify for low-cost training and discounts on diagnostic equipment. Contractors should call 1-866-NJSMART for more information on becoming accredited.