The New Jersey Board of Public Utilities (BPU) announced details of its New Construction Program (NCP), an initiative designed to incentivize energy-efficient construction and support New Jersey's clean energy goals.
New Jersey enacted the Global Warming Response Act in 2007, which mandated an 80% reduction in greenhouse gas emissions from 2006 levels by 2050. The promotion of efficient, all-electric building development will assist in reducing emission and improving indoor air quality. The NCP will play a role in reaching that goal.
The NCP creates a single gateway for builders, developers, and stakeholders to access financial incentives for energy-efficient new construction and major renovation projects. Eligible projects include ground-up new construction for single-family homes, townhomes, multi-family buildings, and commercial and industrial facilities, as well as major gut rehabilitations meeting specific criteria.
The NCP replaces and consolidates several existing programs, including Residential New Construction, Smart Start, and Pay for Performance. Three new pathways are offered based on project type and performance level:
- Bundled Pathway: Combines multiple energy conservation measures for commercial and industrial buildings.
- Streamlined Pathway: Simplifies the process for straightforward projects with energy conservation measures.
- High-Performance Pathway: Provides the most generous incentives for projects achieving nationally recognized certifications.
Incentives range from $1.00 per square foot for buildings that are ENERGY STAR® certified or meet LEED V4.1 standards to up to $2.50 per square foot for projects that achieve PHIUS (Passive House Institute US) certification. Additional bonuses may be granted for affordable housing, greenhouse gas reduction, high-energy intensity in priority zones and decarbonization technologies.
NCP also includes workforce development reimbursements of $2,000 per course for training and certifying builders, consultants, and raters in advanced energy efficiency practices and certification programs.
For detailed program guidelines and application procedures, visit the New Construction Application Portal or contact the BPU at 1-800-624-0241.
Contact: Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.