New Jersey has greenlit RETROFIT NJ, a $75 million grant program designed to support major building retrofit projects aimed at cutting emissions and lowering energy costs across commercial, institutional, and industrial sectors. Managed by the New Jersey Economic Development Authority (NJEDA), the initiative will fund large-scale energy upgrades that go beyond basic efficiency fixes.
Applicants must propose projects with a minimum total cost of $5 million and include at least three integrated clean energy components. These can span electrification, solar, battery storage, and HVAC system upgrades, among others. Grant awards will range from $2.5 million to $12.5 million, targeting multi-building campuses and portfolios to maximize impact.
Building on lessons from the NJ Cool program—NJEDA’s earlier retrofit effort focused on smaller properties—RETROFIT NJ expands the scale and scope of state-led clean energy investments. Notably, the new program is structured to address the needs of more complex and capital-intensive projects that weren’t previously eligible.
Governor Phil Murphy noted the dual goals of environmental responsibility and economic opportunity, emphasizing that public investment in clean infrastructure can help drive job creation. NJEDA CEO Tim Sullivan echoed this, framing RETROFIT NJ as a step toward statewide decarbonization that also enhances market competitiveness.
A key element of RETROFIT NJ is its focus on inclusion. Half of the program’s $75 million budget—sourced from New Jersey’s share of the Regional Greenhouse Gas Initiative (RGGI)—is set aside for Overburdened Communities (OBCs) or institutional projects for at least the first year.
These communities, historically affected by pollution and underinvestment, will have priority access to funding for energy upgrades. Nonprofit and institutional applicants may be reimbursed for up to 60% of eligible costs. For-profit businesses are eligible for 50% reimbursement, with an additional 5% available for projects in OBCs.
Funding can be applied to a wide range of costs, including design, engineering, equipment, construction, and commissioning. With this structure, the program aims to reduce financial barriers while encouraging comprehensive, future-proof solutions.
Kathleen Coviello, NJEDA’s Chief Economic Transformation Officer, said that pairing RETROFIT NJ with the continuing NJ Cool program creates a pathway for projects of all sizes, accelerating decarbonization across the state’s building stock. The NJEDA will open applications in Q1 2026.
