In a significant move to accelerate the state’s clean energy transition, the New Jersey Economic Development Authority (NJEDA) Board on Thursday approved the creation of the Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program.
The $75 million initiative is designed to support multi-pronged, large-scale retrofit projects that drive comprehensive energy improvements for commercial, industrial, and institutional facilities, including campuses and multi-building sites. This program expands upon the efforts of the popular, smaller-scale NJ Cool program.
Major investment in clean energy innovation
RETROFIT NJ will offer substantial grant awards ranging from $2.5 million to $12.5 million for projects with a minimum total cost of $5 million. This scale is intended to fund complex decarbonization efforts that currently fall outside the scope of existing programs.
Gov. Phil Murphy hailed the launch, stating, “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.”
Pioneering thermal energy networks
A key focus of the program is to support the development of Thermal Energy Networks (TENs), an emerging technology that can dramatically reduce emissions across multiple buildings. With grants of up to $12.5 million available for TENs projects, New Jersey is creating what is described as the largest government construction grant program available for TENs in the country, demonstrating a commitment to advancing cutting-edge climate solutions.
NJEDA Chief Executive Officer Tim Sullivan emphasized the impact, stating, “Programs such as RETROFIT will establish New Jersey as a national leader in large-scale building decarbonization efforts, while spurring economic activity and creating jobs.”
Eligibility and funding details
Eligible projects must incorporate at least three clean energy or electrification components, such as solar installation, energy storage, full electrification of heating systems, and comprehensive energy efficiency upgrades.
The program will utilize funding from the Regional Greenhouse Gas Initiative (RGGI) proceeds. To promote environmental equity, 50 percent of the total funding pool is designated for applications for projects in State-designated Overburdened Communities (OBCs) and/or Institutional applicants for a one-year period.
Grant reimbursement rates vary:
- Non-profit and Institutional applicants can receive up to 60 percent reimbursement.
- For-profit commercial entities are eligible for up to 50 percent reimbursement.
- An additional 5 percent bonus is available for all projects located in OBCs.
Funding covers both hard and soft project costs, including engineering, equipment, construction, and commissioning. Applications for RETROFIT NJ are expected to open in the first quarter of 2026.
The new program complements the existing NJ Cool initiative, which has been successful in funding smaller to medium-sized building decarbonization projects, such as electric HVAC and solar installations in municipalities like Edison and Newark. The NJEDA recently expanded eligibility and infused an additional $15 million into NJ Cool due to its high demand.
