New Jersey Clean Energy Program Efficiency Retrofitting

New Jersey’s Clean Energy Program (NJCEP) is a financial incentive system created by the state legislature to encourage energy efficiency retrofitting and promote the use of renewable energy. CMC Energy is a private firm specializing in improving energy efficiency, and became a contracting partner of NJCEP’s Direct Install program. Through this program, CMC works directly with a participating business or public entity to assess areas for improved energy efficiency, and implement modern technical solutions to reduce energy costs. NJCEP pays for 70% of the total retrofitting costs directly to the entity, reducing the total project time to an average of 90 days from the initial appointment. High Bridge Elementary School, in High Bridge, NJ, participated in the Direct Install program and is realizing an annual energy savings of approximately $22,000. The total cost of the installation was $135,109, of which $94,576 was provided directly to the school. The school thus contributed only $40,532, estimated to be paid off in 1.8 years given the school’s energy savings. Future energy savings will be used for further improvements, such as a new roof. In 2019, to promote equity, NJCEP increased its funding to 80% of the retrofitting costs for facilities: within an Urban Enterprise Zone, within an Opportunity Zone, owned by local governments, containing K-12 public schools, or designated as affordable housing. Under the newer scheme, the High Bridge Elementary pay period would be shortened to 1.23 years, freeing up reduced energy savings faster.

The NJCEP’s Install program has distributed over $200 million in financial incentives since its inception in 2010 through 2019. The program increased the incentive amount to 80% of the total project cost in 2019 to encourage equitable investments in energy efficiency upgrades. This increase shortens the recuperation period, and makes it more feasible for businesses and schools in lower income communities to afford upgrades. Further programs can be enacted at the state and local levels to encourage efficiency and renewable energy installations, with focus on helping communities meet the necessary 20% of project costs. Future programs can also focus on community participation in Direct Install incentives and expansion of applicable 80% funding categories, such as youth centers, community colleges, or residential homes. 



Publication Date: 2010

Related Organizations:

  • State of New Jersey
  • CMC Energy

Related Toolkits:


Resource Category:

Resource Types:

  • Best practice
  • Funding program

States Affected:


Go To Resource