5 Questions you might have about the new NJ Energy Efficiency Programs
1. Is the New Jersey Clean Energy Program (NJCEP) going away?
Well, yes and no, to be exact. NJ incentive programs are transitioning. By the end of this article you’ll understand what we mean. What’s changing about the NJCEP? Here’s a quick breakdown about what’s staying and what’s going:
NJ Clean Energy programs that are staying
The New Construction, Large Energy Users, Combined Heat & Power & Fuel Cells, State Facilities, Local Government Energy Audits, Energy Savings Improvement Program, Solar & Community Solar programs are staying.
NJ Clean Energy Programs going away
However, the Direct Install, Multifamily Program, and NJ SmartStart Buildings programs that include Performance Lighting, Prescriptive Lighting, Lighting Controls, Ground Source Heat Pump, Gas Water Heating, Gas Heating, Gas Cooling, Food Service Equipment, Electric Unitary HVAC, Electric Chiller, Refrigeration Controls, Refrigeration Doors/Covers, Refrigeration/Freezer Motors, Variable Frequency Drives, and Custom Measures will not continue.
2. Why are these programs “going away”?
The Clean Energy Act that was signed in 2018 by New Jersey Governor Phil Murphy called for significant changes in buildings clean energy/sustainability foundation. This Clean Energy Act requires investor-owned gas and electric utilities to take this matter to a local level. In the past, energy efficiency programs in New Jersey were run by the NJCEP under the New Jersey Board of Public Utilities (NJBPU). However, now they will be run by the utilities themselves. So, they are not actually going away, better yet, those NJ incentive programs are transitioning to a local level.
3. Which utility companies will be running their own programs?
Atlantic City Electric, Jersey Central Power & Light, PSE&G, Rockland Electric Company, Elizabethtown Gas, South Jersey Gas and New Jersey Natural Gas will have their own set of incentive programs. Many are expected to be similar to the initial NJCEP programs.
4. When will these new incentive programs be released?
PSE&G and New Jersey Natural Gas will launch/expand their programs spring of 2021. Atlantic City Electric, Jersey Central Power & Light, Rockland Electric Company, Elizabethtown Gas and South Jersey Gas are expected to release their programs by July of 2021. Until your utility launches a program, you can submit projects through the NJCEP.
5. Is this transition a good thing or a bad thing?
For multiple reasons, this is a good thing. First, this transition was put into place to primarily fight climate change and reduce carbon emissions for the well-being of our NJ residents as well as for the health of our planet. Second, to push for a higher reduction in carbon emissions, more funding is expected to be released at the utility level when combined and compared to the NJCEP’s previous funding budget. This will hopefully in turn result in higher utility incentives and rebates for local customers than what was previously offered. Third, the utilities are expected to offer programs that compare to the existing NJCEP’s being offered.
Lastly, though it may seem overwhelming that many programs will spring up in the state, Big Shine Energy offers complimentary incentive processing along with your energy efficiency upgrade. As we work with utilities across the nation, we will be able to process your application in the program that is best suited for your facility.
