The New Jersey Economic Development Authority Board approved a new program Oct. 9 intended to cut greenhouse gas emissions and energy costs.
The Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program will support large-scale retrofit projects that enable energy improvements for buildings, campuses, and multi-building facilities, expanding upon the efforts of the existing NJ Cool program.
“New Jersey has made great strides in saving businesses money, lowering our carbon footprint, and fostering a cleaner and greener state,” said NJEDA Chief Executive Officer Tim Sullivan. “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.”
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 reduce emissions across multiple buildings. This program is one of the largest government construction grant programs available for TENs in the country with up to $12.5 million available per project, as the state promotes 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 complement NJ Cool by supporting larger, complex building decarbonization projects that fall outside the scope of limitations for NJ Cool.
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.
