New Jersey offers incentives for energy-efficient construction

The New Jersey Board of Public Utilities (NJBPU) recently revealed details of its New Construction Program (NCP), a broad initiative that incentivizes energy-efficient construction and supports the state’s clean energy goals.

The program creates a single point of entry for builders, developers, and project stakeholders to access financial incentives for energy-efficient new construction and major renovation projects in the residential, multifamily, commercial and industrial sectors. The NCP replaces and consolidates several existing programs, including Residential New Construction, SmartStart, and Pay for Performance, with three pathways tailored to different project types and performance levels.

The program emphasizes decarbonization technologies, offering bonus incentives for projects incorporating all-electric systems such as heat pumps, and helping support builders or homeowners who pursue highly efficient, decarbonized air and water heating systems. This focus supports New Jersey’s goal of electrifying 400,000 residential units and 20,000 commercial spaces by 2030.

The program also includes robust workforce development components. It offers reimbursements up to $2,000 per course for training and certifying builders, consultants, and raters in advanced energy efficiency practices and certification programs.