The New Jersey Economic Development Authority (NJEDA) recently approved a new program aimed at reducing greenhouse gas emissions and energy costs. The Retrofit NJ grant program, which focuses on reducing emissions through retrofitting, optimization, fuel switching, and innovative technologies, will support multi-pronged, large-scale retrofit projects that enable comprehensive energy improvements in buildings, campuses, and multi-building facilities, including solar energy plus energy storage. The new funding expands the efforts of the existing NJ Cool program.

"New Jersey is leading the nation in building a cleaner and more resilient future," said Governor Phil Murphy. "The RETAIL NJ funding program reinforces our commitment to reducing emissions, lowering energy costs, and driving innovation across our state. By investing in retrofit projects, we are not only protecting our environment, but also creating high-paying jobs and reducing costs for families and businesses.". ”

RETAILT NJ will provide grants ranging from $2.5 million to $12.5 million to commercial, industrial, and institutional building owners undertaking renovation projects with a minimum total project cost of $5 million. Eligible projects must include at least three clean energy or electrification components, such as solar energy, energy storage, heating electrification, refrigerant replacement, and energy efficiency upgrades. RETAILT NJ will also provide support for projects implementing Thermal Energy Networks (TENs), an emerging technology that can significantly reduce emissions across multiple buildings. This program is the largest TENs government construction grant program in the country, with each project eligible for up to $12.5 million. It demonstrates New Jersey's strong leadership in advancing cutting-edge technological solutions to address climate change.

"New Jersey is committed to addressing climate change through impactful projects aimed at reducing our carbon footprint and promoting a greener state," said Catherine Coviello, Chief Economic Transformation Officer of the New Jersey Economic Development Corporation. "Today's approval of the RETAILT NJ program allows us to expand access to energy efficiency upgrades, strengthen our communities and economy, while helping businesses reduce energy use and save money.". ”

Currently, the NJ Cool program provides financial assistance to commercial, industrial, and institutional building owners and tenants who undertake retrofit construction projects for existing buildings in state-designated Overburdened Buildings Communities (OBCs) and adjacent neighborhood census tracts, in order to reduce greenhouse gas emissions during operations.

The Retrofit NJ program, which has received unanimous praise, will utilize $75 million in Regional Greenhouse Gas Initiative (RGGI) funding. Of this funding, 50% will be allocated to institutional applicants who are located in Opportunity Business Centers (OBCs) and/or have submitted project applications, for a duration of one year. The funds provided by the program will cover both the hard and soft costs of the projects, including design, engineering, equipment, construction, and commissioning. Non-profit and institutional applicants will receive up to 60% reimbursement, while for-profit commercial entities will receive up to 50% reimbursement. All projects located in OBCs will receive an additional 5% bonus. Applications will be accepted on a rolling basis, and funding will be disbursed in phases.

The application for RETROFIT NJ is expected to be open in the first quarter of 2026.