The New Jersey Economic Development Authority (NJEDA) recently opened the application for the RETROFIT NJ Program, offering transformative funding opportunities for commercial, industrial, and institutional building owners throughout New Jersey who are planning substantial energy efficiency and carbon reduction improvements. Short for the Reducing Emissions Through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies grant program, RETROFIT NJ is a $75 million pilot program intended to “provide financial assistance to multipronged, large-scale retrofit projects that enable holistic energy improvements at buildings, campuses, and multi-building facilities.”
Program Highlights
- Minimum grant award of $2.5 million, covering at least 50% of eligible project costs (up to $10 million for most projects, $12.5 million for qualifying Thermal Energy Networks).
- Eligible projects must have a minimum total cost of $5 million.
- Projects in Overburdened Communities and institutional/nonprofit buildings are prioritized and may qualify for additional funding.
- Grant funds are provided on a reimbursement basis and disbursed in tranches according to project milestones.
- Funding supports single buildings or multiple adjacent buildings (“campus style”) —applications can be submitted by a single owner, tenant, or a consortium of owners and tenants, with a lead entity or newly formed entity applying on behalf of the group.
Project Requirements
Projects must either:
- Involve Thermal Energy Networks (centralized/distributed heating/cooling across multiple buildings),
OR - Include work from at least three of the following categories:
- On-site renewable energy generation (solar, etc.)
- On-site energy storage (battery, thermal, etc.)
- Electrification/fuel switching of heating systems
- Refrigerant replacement for cooling systems
- Energy efficiency improvements (BMS, envelope, heat recovery, lighting upgrades, green roofs/cool roofs, electrifying appliances, etc.)
CO₂ Savings Requirement
Projects must demonstrate a reduction or avoidance of at least one metric ton of CO₂ equivalent (CO₂e) per $250 of requested grant funds over the project’s useful life (for example, a $5 million grant requires a projected reduction of 20,000 metric tons of CO₂e).
Who Can Apply
- Owners of commercial, industrial, and institutional buildings located in New Jersey.
- Institutional buildings include public purpose facilities, nonprofits, schools, hospitals, and municipal buildings.
- Tenants with owner approval and a qualifying lease may also apply.
- Multiple owners and tenants can apply jointly as a consortium, with a lead entity managing the application.
- Applicants must be in good standing with relevant New Jersey agencies and demonstrate financial viability for the portion of project costs not covered by the grant.
Why Act Now?
- 50% of funding is set aside for projects in Overburdened Communities and institutional applicants for the first year.
- Applications are reviewed on a rolling basis; funding is limited.
Next Steps
If your organization is planning significant retrofit work or energy efficiency improvements for your New Jersey buildings, now is the time to explore this opportunity. Contact our team to discuss eligibility, the application process, and how we can help maximize your funding potential.
Learn More
For a consultation or to discuss your project, reach out to the CBIZ state incentives team.
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