The program behind every utility incentive in New Jersey
Every commercial HVAC incentive in this state traces back to one framework. Knowing which pathway your building falls into is what determines whether you are looking at a fixed equipment rebate or a modeled six-figure number.
Administered by
NJ BPU
Board of Public Utilities
Direct Install
up to 70%
of total cost, per NJ BPU
Delivered by
Your utility
six across the state
Figures on this page are quoted from the program administrators and are linked at the foot of the page. Incentive schedules change by program year, so we confirm current figures against your utility at survey rather than quoting from a table.
What NJCEP actually is
New Jersey's Clean Energy Program is the statewide framework, overseen by the New Jersey Board of Public Utilities, that funds energy-efficiency work. The utilities deliver it; the BPU sets it.
The Board of Public Utilities states that NJCEP offers financial incentives for commercial, industrial and governmental customers to retrofit and upgrade to new energy-efficient technologies. That word — retrofit — is the whole boundary of the program. It exists to fix buildings that already exist.
For a facility manager the practical translation is that there is no single application, no single number and no single office. There is a statewide framework, and then there is whichever utility bills your building, running its own version of it. Which is why the first question is always which utility is on your bill, not which program you want.
Direct Install is not the only pathway, and usually not yours
Direct Install is the turnkey small-business route, described by the BPU as covering up to 70% of total cost. Larger commercial and multifamily projects run through the prescriptive, custom and engineered pathways instead.
This is the most common point of confusion we see. Direct Install is the program people have heard of, because it is heavily promoted and the headline percentage is high. It is aimed at smaller customers, and it works well for them.
Central plant is a different conversation. A boiler, chiller or large rooftop replacement in an apartment building, hotel or office property is generally sized through a custom or engineered pathway, where the incentive comes out of a facility-specific energy model rather than a fixed equipment schedule. That is slower to quote and frequently worth considerably more.
Neither route is better in the abstract. The one that applies is decided by your building and your utility account, and it is settled during the survey.
Gas and electric are two separate programs
Most New Jersey buildings are billed by two different companies, each running its own incentive program. A project touching both fuels produces two applications and two incentives.
Electric territory and gas territory do not share a map. A building can be on PSE&G for electricity and New Jersey Natural Gas or Elizabethtown Gas for fuel, and each side runs separately with its own schedule and its own paperwork.
On a boiler replacement the gas side is usually the larger of the two, and it is the one owners most often leave unclaimed — simply because nobody told them the two were separate. Both are our scope.
| Pathway | Typically suits | How the incentive is set |
|---|---|---|
| Direct Install | Smaller business customers | Turnkey, up to 70% of total cost per NJ BPU |
| Prescriptive | Standard equipment swaps | Fixed incentive per qualifying equipment type |
| Custom | Facility-specific projects | Modeled from the building's own energy saving |
| Engineered Solutions | Multifamily, schools, hospitals, universities, municipalities | Comprehensive audit and modeled saving |
| Retro-commissioning | Existing plant that is not performing | Based on tuning and optimization savings |
| Building decarbonization | Fuel-switching and electrification | Modeled emissions and energy reduction |
Financing alongside the incentive
Incentives reduce the project cost. Financing spreads whatever is left. JCP&L states a maximum to be financed of up to $250,000, and as low as $2,500, at 0% interest for up to five years. New Jersey Natural Gas offers an On-Bill Repayment Program so the remaining balance is carried on the utility bill rather than as a separate facility expense.
Between the incentive and zero-interest financing, the question for most owners stops being whether the capital exists and becomes whether the building can afford to keep running the equipment it already has. Old plant does not fail loudly. It produces a higher bill every month, indefinitely.
Find your utility's program
Check the top of your electric and gas bills. Territory does not follow municipal lines, and your two utilities are usually different companies.
- PSE&GNorthern and central New Jersey, plus parts of the south
- JCP&LShore, northwest and parts of central New Jersey
- Atlantic City ElectricSouthern New Jersey and the southern shore
- New Jersey Natural GasMonmouth, Ocean, Morris and parts of Burlington
- South Jersey GasAtlantic, Cape May, Cumberland, Salem, Gloucester and parts of Camden and Burlington
- Elizabethtown GasUnion, Warren, Hunterdon, Sussex and parts of Middlesex and Mercer
Common questions
What is New Jersey's Clean Energy Program?
NJCEP is New Jersey's statewide clean energy program, overseen by the New Jersey Board of Public Utilities. It provides financial incentives for commercial, industrial and governmental customers to retrofit and upgrade existing buildings to energy-efficient technologies.
Who actually pays the incentive?
Your utility. NJCEP sets the statewide framework and the programs are delivered by the individual utilities — PSE&G, JCP&L, Atlantic City Electric, New Jersey Natural Gas, South Jersey Gas and Elizabethtown Gas — each running its own applications and schedules.
What is Direct Install?
Direct Install is the turnkey pathway aimed at smaller business customers. The New Jersey Board of Public Utilities describes it as covering up to 70% of the total cost for a small business doing energy efficiency upgrades.
What if our building is too large for Direct Install?
Larger buildings run through the prescriptive, custom and engineered pathways instead. These are sized from a facility-specific energy model rather than a fixed equipment schedule, which is how most central plant projects are funded.
Does multifamily qualify?
Yes. Multifamily buildings are served by the commercial and industrial programs rather than the residential ones — New Jersey Natural Gas lists multifamily buildings explicitly within its Engineered Solutions pathway.
Does new construction qualify?
No. These programs fund retrofitting and upgrading existing buildings. A new building is designed to current code and has no inefficient baseline to improve on.
Do we apply ourselves?
We file on your behalf. The energy model, the application and the utility coordination are our scope. What we need from you is twelve months of electric bills, twelve months of gas bills, the utility account details and access to walk the building.
Sources
- New Jersey Board of Public Utilities — Programs for BusinessesDirect Install described as covering up to 70% of total cost; NJCEP incentives for commercial, industrial and governmental retrofits.
- New Jersey's Clean Energy ProgramStatewide program administered under the NJ Board of Public Utilities.
- JCP&L — energy efficiency programs for businessProgram pathways and financing terms of up to $250,000, as low as $2,500, at 0% interest for up to five years.
- New Jersey Natural Gas SAVEGREEN — commercial rebates and incentivesPrescriptive and custom, Direct Install, Energy Management and Engineered Solutions pathways; Engineered Solutions covers multifamily buildings. On-Bill Repayment Program.
Rivet Energy is not a program administrator. We model eligibility, prepare and file the applications, and coordinate with your utility. Installation is carried out by licensed partner contractors.
Find out which pathway your building falls into
Typical incentives run 50–80% of total project cost, with most projects landing at up to 70%. The final number depends on your utility tier and the building's energy usage. Start with twelve months of electric and gas bills.