Rebates

In New Jersey, under the Farmland Assessment Act, farmland actively devoted to an agricultural or horticultural use is assessed at its productivity value. This practice generally results in a lower tax burden for farmland owners compared to residential or commercial land owners. In January 2010 New Jersey enacted legislation (S.B. 1538), which among other things clarifies how farmland used for biomass, solar, and wind energy generation should be treated under the Farmland Assessment Act. Ultimately, the law states that the addition of a biomass, solar, or wind energy generating system to land that was assessed and taxed as

NOTE: Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

The New Jersey Uniform Construction Code Act provides that model codes and standards publications shall not be adopted more frequently than once every three years. However, a revision or amendment may be adopted at any time if a commissioner of community affairs finds that imminent danger exists to the public's health, safety or welfare.

On September 3

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

Note: Applications for Fiscal Year 2021 were due on March 15, 2021. The program will reopen with a point-of-sale incentive during summer 2021.

The Charge Up New Jersey Program provides incentives to residents who purchase or lease new battery electric or plug-in hybrid vehicles. To qualify, vehicles must have an MSRP of less than $55,000. For more information, visit the program website.

In May 2018,  the governor signed A3723/S2314, which mandates the creation of the Community Solar Energy Pilot Program. The New Jersey Board of Public Utilities adopted rules establishing the Community Solar Energy Pilot Program on January 17, 2019.

The pilot is designed to run for three years. Program Year 1 applications opened on April 19, 2019. Program Year 2 applications were due on February 5, 2021. As of December 2022, a schedule for Program Year 3 is not available.

Aggregate capacity in the state in limited to 75 MW per program year. The capacity limit is divided

The COOLAdvantage Program’s objective is to improve the energy efficiency of new electric air conditioners and heat pumps. To promote both the sale of energy efficient units and proper installation techniques, the New Jersey Clean Energy Program offers rebates for properly sized and installed high efficiency systems. In order to qualify for a rebate, the unit must meet a minimum energy efficient standard, based on its SEER, EER or HSPF ratings. Customers of Atlantic City Electric, Jersey Central Power & Light, PSE&G and Rockland Electric Company are generally eligible to apply for this rebate; however, funding is also available for

Per the State of New Jersey Board of Public Utilities, the EDA Edison Green Growth Fund Loan closed December 2012

The Edison Innovation Clean Energy Manufacturing Fund (CEMF) is intended to provide assistance for the manufacturing of energy efficient and renewable energy products that will assist Class I renewable energy and energy efficiency technologies in becoming competitive with traditional sources of electric generation. The CEMF is administered by the New Jersey Economic Development Authority (EDA) and is structured to provide grants (Tranche I) and loans (Tranche II) for certain business development activities that further these goals within the State

P.L. 2024, c. 19 repeals the Sales and Use Tax exemption on sales, leases, and rentals of zero emission vehicles (ZEVs). Beginning October 1, 2024, sales of ZEVs are subject to tax, and the exemption will be increased to 50% of the full rate for nine months. Then increasing to the full 6.625% on July 1, 2025.

The New Jersey Sales and Use Tax Act provides an exemption from sales and use tax for people who sell, rent, or lease a new or used zero emission vehicle on or after May 1, 2004. To qualify, vehicles must be certified pursuant

The Port Authority of New York and New Jersey offers discounted toll rates of $13.75 per peak trip and $8.25 per off-peak trip for owners of eligible low-emission, energy-efficient vehicles. A list of eligible vehicles can be found here. For more information, visit the program website.

In January 2008, New Jersey enacted legislation mandating the use of high performance green building standards in new state construction. The standard requires that new buildings larger than 15,000 square feet constructed for the sole use of state entities should be designed and managed to meet high performance green building standards. The law allows for exceptions from specific requirements in cases of practical difficulty. These exceptions only apply to the specific requirement in question and do not extend to all requirements. With some exceptions the state is also required to purchase Energy Star products when available, a provision adopted in

In July 2002, New Jersey’s governor signed Executive Order No. 24 requiring all new school designs to incorporate LEED Version 2.0 guidelines in order to achieve maximum energy efficiency and environmental sustainability in school facilities.

The Executive Order also requires that the New Jersey Economic Development Authority establish a subsidiary corporation, The New Jersey Schools Construction Corporation (SCC), to be responsible for the school facilities project and the state’s compliance with the new order. The SCC was subsequently replaced by the New Jersey Schools Development Authority (SDA) in 2007. The SDA mandates that all projects must incorporate the guidelines developed

NOTE: Rebates have been updated for the Fiscal Year 2017. NJ Home Performance with ENERGY STAR program includes both rebate and loan as incentives. This program is listed twice under State Loan Program and State Rebate Program.

The New Jersey Board of Public Utilities (NJ BPU) offers the 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.

Eligibility

The program offers incentives for

NOTE: Rebates have been updated for the Fiscal Year 2017.  NJ Home Performance with ENERGY STAR program includes both rebate and loan as incentives. This program is listed twice under State loan Program and State Rebate Program.

The New Jersey Board of Public Utilities (NJ BPU) offers the 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.

Eligibility

The program offers incentives for

New Jersey's interconnection standards apply statewide to all electric distribution utilities, but not to the small number of municipal utilities and electric cooperatives in the state. The current standards include the following basic provisions:

• Systems powered by Class I renewable energy resources are eligible. This includes solar, wind, fuel cells powered by renewable fuels, geothermal technologies, wave or tidal action, landfill gas, anaerobic digester gas, and sustainable biomass.
• There are three different levels of review procedures for applications, depending on size and certification. Level 1 applies to inverter-based systems with a capacity rating of 10 kilowatts (kW) or less. Level

NOTE: A.B. 3723 enacted in May 2018 includes several changes to the net metering law, including- i) increase net metered aggregate capacity to 5.8% of the total annual kWh sold in the state, ii) establishes pilot community solar program, and other minor changes. 

Eligibility:

New Jersey's net-metering rules require state's investor-owned utilities and energy suppliers (and certain competitive municipal utilities and electric cooperatives) to offer net metering at non-discriminatory rates to residential, commercial and industrial customers. Systems that generate electricity using solar, wind, geothermal, wave, tidal, landfill gas or sustainable biomass resources, including fuel cells (all "Class I" technologies under

NOTE: This program is available through June 30, 2023 or while funds last.

The New Jersey Comfort Partners Program is a free program that helps income-eligible customers reduce their utility bills through implementing cost effective measures which save energy and money while improving their home's safety and comfort at no cost to them. The Comfort Partners Program is available to any New Jersey home with significant energy use. At this time, your income must be at or below 250% of the Federal Poverty Guidelines even if you participate in a federal / safety net partnership program. The Comfort Partners Program

New Jersey's community solar program is governed by the Solar Act of 2021 (L. 2021, c. 169) which established a new Successor Solar Incentive Program, also known as the “SuSI Program”. The SuSI Program implements the Clean Energy Act of 2018 (L. 2018, c.17) and the Solar Act of 2021 (L. 2021, c. 169). The SuSI Program provides incentives to eligible solar facilities to enable the continued efficient and orderly development of solar renewable energy generating sources throughout the state.

The program provides one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) for every megawatt-hour (MWh) of solar electricity produced

Through the SAVEGREEN Project, New Jersey Natural Gas (NJNG) provides an On-Bill Repayment Program (OBRP) for up to $14,000 at 0% APR with no fees, points, or closing cost for energy efficiency upgrades. 

Only current NJNG customers with 12 months of on time account payments are eligible to participate in the program. New NJNG customers must provide a letter of credit from previous regulated utility showing 12 months of on-time payments. NJNG reserves the right to limit participation in the OBRP to customers who have natural gas heating.

See the program web site listed above for complete details on eligibility and

Through The SAVEGREEN Project, New Jersey Natural Gas (NJNG) provides rebates for customers installing high-efficieny appliances, insulation, heat pumps, air conditioning and more. Installation qualifies customer for NJNG's free Home Energy Audit. This audit is performed by a BPI certified NJNG auditor. NJNG offers up to $15,000 in 0% APR Financing.

Installation of equipment in new homes, and participants who have received rebates from the NJ Clean Energy Program are not eligible the rebates. 

NOTE: The program is currently open for second round of solicitations for program year 2015. Proposals are due by April 18, 2015. The program manual can be accessed here. 

New Jersey's 1999 electric restructuring legislation provides for investments in energy efficiency and renewable energy through a "Societal Benefits Charge" (SBC) collected from all customers of electric public utilities. In March 2001, the New Jersey Board of Public Utilities (BPU) approved funding for renewable-energy programs, including a customer-sited renewables rebate program for homes, businesses, institutions and non-profits. The program is currently managed by Honeywell under supervision of NJ BPU.

Currently

Right To Installation:

In 2007, New Jersey enacted legislation preventing homeowners associations from prohibiting the installation of solar collectors on certain types of residential properties. The term "solar collector" is not defined, but would seem to include both solar photovoltaic and solar thermal technologies. This law covers only dwellings that are not deemed community property of the association, including townhouses which have at least two sides that are unattached to any other building and for which the owner, rather than the association, is responsible for roof maintenance. 

In addition, the law applies specifically to systems installed on the roofs of

The New Jersey Office of Clean Energy (OCE) offers rebates to state residents who purchase certain energy efficient home appliances. The program website has a search engine where consumers can look up if their product is eligible for rebate. The OCE also offers a $50 rebate for refrigerator/freezer recycling. This recycling offer is only valid till June 30, 2017.

When mail-in rebates are active, as a general rule, all appliances must be ENERGY STAR rated; however, additional requirements may apply to different types of appliances. Rebate requests must generally be made no later than 180 days after the purchase of a

New Jersey’s Clean Energy Program offers the Residential New Construction Program to incentivize the construction of new homes that meet standards for the following: IECC 2015, EPA ENERGY STAR Certified New Homes, Multifamily High-Rise and the DOE Zero Energy Ready Home Program. The program provides a range of financial incentives depending on the energy efficiency of the homes. Both single family and multifamily buildings are eligible for the program.  

Program Description 

The Program offers builders flexibility and options to participate in the program by building homes to varying standards or guidelines. In all cases, the Home Energy Rating System

New Jersey’s Clean Energy WARMAdvantage Program offers rebates on furnaces, boilers and water heaters with the objective of improving the efficiency of space heating and water heating systems. The COOLAdvantage Program offers rebates for energy efficient cooling equipment. The programs are currently available statewide to all New Jersey residents, (i.e., including users of oil, propane, and electric customers of municipal utilities. Measures must be installed as retrofits in existing homes; new construction does not qualify. 

Residential Gas Customers: Gas furnaces, boilers, and water heaters can qualify for incentives of $250 to $500. A $1,200 rebate is available for ENERGY

In October 2008, New Jersey enacted legislation exempting renewable energy systems used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes. (There is not a state component to property taxes in New Jersey). Eligible renewable energy systems* include solar PV, wind, fuel cells, sustainable biomass, geothermal electric, landfill gas, hydroelectric, resource recovery, wave, and tidal systems that produce electricity. Systems that produce energy from solar thermal energy (e.g., solar hot water) or geothermal energy (e.g., geothermal heat pumps) are also eligible for the exemption. The exemption may be claimed for all qualified systems installed on

PSE&G, in concert with New Jersey's Clean Energy Program (NJCEP), provides a range of incentives for new equipment and energy efficiency measures in residences. All program rebates are awarded through NJCEP, although customers may reach incentive information through the PSE&G web site. The Cool Advantage Program offers rebates for high-efficiency central air conditioners and electric heat pumps. Additionally, the Warm Advantage Program offers rebates for high-efficiency gas water heaters, furnaces and boilers.  Please visit the Cool Advantage and Warm Advantage program links for specific incentive offerings. 

 Home energy audits, programmable thermostats and insulation measures may also be available through PSE&G

NOTE: The program held its 17th round of solicitation from January 23, 2017 to February 13, 2017. Applications are accepted through 4-6 competitive solicitations on an every-other month basis until program capacity of 97 MW is met.

Public Service Electric and Gas (PSE&G) of New Jersey, the largest utility in the State, offers loans for "behind the meter" photovoltaic (PV) systems to all customer classes in its electric service territory.  The program opened in April 2008 with a goal of installing 30 megawatts (MW) of customer-sited PV through the issuance of loans totaling $105 million. The initial program, termed Solar

NOTE: A.B. 3723 enacted in May 2018 included several updates to the state's Renewable Energy Portfolio standard including i) increasing the RPS standard to 50% by 2030, ii) increasing the offshore wind carveout, iii) increases in the Solar carveout, iv) changes to the alternative compliance payments, and other several minor changes. 

Requirements:

New Jersey's Renewable Portfolio Standard (RPS) was first adopted in 1999 and has been updated several times. In May 2018, A.B. 3723 increased the total RPS requirement in New Jersey to 35% by 2025 and 50% by 2030 where the specified percentage of electricity sold in the the state

New Jersey's 1999 electric-utility restructuring legislation created a "societal benefits charge" (SBC) to support investments in energy efficiency and "Class I" renewable energy. The SBC funds New Jersey’s Clean Energy Program (NJCEP), a statewide initiative administered by the New Jersey Board of Public Utilities (BPU). The NJCEP provides technical assistance, financial assistance, information and education for all classes of ratepayers. NJCEP energy-efficiency programs and renewable-energy programs were initially managed and implemented by New Jersey's seven investor-owned electric public utilities and gas public utilities, but on April 1, 2007 management was turned over to third-party program managers Honeywell Utility Solutions and

New Jersey has enacted three separate laws addressing local permitting practices for solar and wind energy facilities. The first deals with solar and wind facilities located in industrial-zoned districts; the second with wind energy devices sited on piers; and the third addresses permitting standards small wind energy devices in general. All three are described below.

Solar and Wind as Permitted Uses in Industrial Zones
In March 2009 the state enacted legislation (A.B. 2550) defining facilities engaged in electricity production using solar energy technologies, photovoltaics, and wind energy systems as permitted uses in industrial-zoned parcel(s) of 20 contiguous acres or more

New Jersey law provides for the creation of solar easements to ensure that proper sunlight is available to those who operate solar-energy systems. The term "solar energy device" is not defined by the law, and thus could conceivably include all manner of systems or equipment that utilize solar energy. The law also establishes requirements for certain types of information that must be included in the easement agreement, listed as follows:

• The vertical and horizontal angles, expressed in degrees, at which the solar easement extends over the real property subject to the solar easement.
• Any terms or conditions or both under

In March 2009 New Jersey enacted legislation (A.B. 1558) designed to support the integration of solar energy systems into new residential developments. The law requires that developers of residential developments with 25 or more dwelling units must "offer to install, or to provide for installation of, a solar energy system" when techinically feasible.

 Solar energy systems are defined to include systems that use solar energy to provide "all or a portion of the heating, cooling, or general energy needs of a dwelling unit, including, but not limited to, nocturnal heat radiation, flat plate or focusing solar collectors, or

New Jersey offers a full exemption from the state's sales tax for all solar energy equipment. This exemption is available to all taxpayers. All major types solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption as described by the New Jersey Division of Taxation Publication S&U-6 (Sales Tax Exemption Administration). According to S&U-6, the exemption includes all solar energy "devices or systems specifically approved by the Board of Public Utilities, Division of Energy and designed to provide heating or cooling or electrical or mechanical power by converting solar energy to some other usable

NOTE: Starting October 29, 2018, the SREC Registration program applications submitted will receive 10 year SREC qualifying life. Applications submitted before the date will receive 15 years SREC qualifying life. 

New Jersey’s Renewable Portfolio Standard (RPS) includes a carve-out for solar, requiring the each electricity Load Serving Entities (LSEs) to provide at least 4.1% of the electricity through in-state solar installations by 2028. This solar carve-out, in addition to other supporting incentives has established NJ as one of the largest and dynamic solar market in the US. The SREC registration program allows the solar projects in New Jersey generate

As of July 1, 2021, South Jersey Gas (SJG) is offering the ”next generation” of energy efficiency programs, previously administered by New Jersey’s Clean Energy Program (NJCEP) and delivering them directly to you, our customers. To help you take the next step towards energy efficiency, SJG’s Smart Energy Partners is providing new and enhanced solutions to help make energy efficiency more accessible and affordable.

Rebates include appliances, efficient gas heating, and water heaters. Whole home performance program eligible for up to $5,000 in rebates and up to $15,000 in interest free financing. SJG also offers whole home weatherization for income-qualifying

NOTE: Round 6 of the solicitation for SRECs has been issued. Bids are due on April 17, 2017 by 5pm. Information and documents on the RFP can be accessed at the program website. 

In September 2007 the New Jersey Board of Public Utilities (BPU) began an investigation into ways to develop and support the solar financing mechanisms based on Solar Renewable Energy Certificates (SRECs). An SREC is a tradable commodity that represents the renewable attributes of one megawatt-hour (MWh) of electricity generated from a solar energy resource (it does not include the energy or capacity aspect of the system)

By Board Order on July 28, 2021, the New Jersey Board of Public Utilities (NJBPU) established the SuSI Program to implement the Clean Energy Act of 2018 (L. 2018, c.17) and the Solar Act of 2021 (L. 2021, c. 169). The SuSI Program replaces the SREC Registration Program (SRP), which was closed to new registration on April 30, 2020 pursuant to the Clean Energy Act, and the Transition Incentive (TI) Program, which provided a bridge between the Legacy SRP and the SuSI Program. A Board Order from March 6, 2023 revised the ADI SREC-II values, effective March 13, 2023.

The

By Board Order 12-7-22-8C on December 7, 2022, the New Jersey Board of Public Utilities established the Competitive Solar Incentive (CSI) Program as part of the Successor Solar Incentive (SuSI) Program. The SuSI Program was established to replace the SREC Registration Program in July 2021.

The SuSI program consists of two sub-programs:

Administratively Determined Incentive Program

The ADI Program provides fixed incentives for residential and non-residential net metered projects up to 5 MW. See the Administratively Determined Incentive Program DSIRE entry for more information on that program.

Competitive Solar Incentive Program

The CSI Program Provides incentives for grid supply and