A New Jersey solar project by Solar Landscape.
The New Jersey Economic Development Authority (NJEDA) recently approved a new program aimed to reduce greenhouse gas emissions and energy costs. The Reducing Emissions through Retrofits, Optimization, Fuel-Switching and Innovative Technologies (RETROFIT NJ) Grant Program will support multi-pronged, large-scale retrofit projects that enable holistic energy improvements, including solar + storage, for buildings, campuses and multi-building facilities. The new funding expands upon the efforts of the existing NJ Cool program.
“New Jersey is leading the nation in building a cleaner and more resilient future,” said Gov. Phil Murphy. “The RETROFIT NJ Grant Program strengthens our commitment to reducing emissions, cuts energy costs, and drives innovation across our state. By investing in retrofit projects, we are not only protecting our environment, but also creating good-paying jobs and lowering costs for families and businesses.”
RETROFIT NJ will offer grant awards between $2.5 million and $12.5 million to commercial, industrial and institutional building owners undertaking retrofit 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 storage, electrification of heating, refrigerant replacement and energy efficiency upgrades. RETROFIT 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 government construction grant program available for TENs in the country with up to $12.5 million available per project, demonstrating New Jersey’s strong leadership in advancing cutting-edge technology solutions to climate change.
“New Jersey is committed to combating climate change through impactful programs that aim to reduce our carbon footprint and promote a greener state,” said NJEDA chief economic transformation officer Kathleen Coviello. “With today’s approval of the RETROFIT NJ program, we’re expanding access to energy-efficient upgrades, strengthening 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 undertaking retrofit construction projects that reduce operating greenhouse gas emissions from existing buildings in State-designated Overburdened Communities (OBCs) and Adjacent Community census blocks.
The RETROFIT NJ program will utilize $75 million in Regional Greenhouse Gas Initiative (RGGI) funds, with 50% of the funding pool designated for applications submitted for projects in OBCs and/or for Institutional applicants for a one-year period. Funding provided by the program will cover both hard and soft project costs, including design, engineering, equipment, construction and commissioning. Non-profit and institutional applicants will receive up to 60% reimbursement, while for-profit commercial entities are eligible for up to 50% reimbursement, with an additional 5% bonus for all projects located in OBCs. Applications will be accepted on a rolling basis with phased disbursement.
Applications for RETROFIT NJ are expected to open in the first quarter of 2026.
News item from the NJEDA
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