Translator Disclaimers
For Immediate Release: Contact: Tracy Munford
Date: 01/27/2025 609-940-1099
TRENTON – The New Jersey Board of Public Utilities (NJBPU) has received over $185M in federal funding from the Home Efficiency Rebates (HER or HOMES), Home Electrification and Appliance Rebates (HEAR or HEEHR), and Training for Residential Energy Contractors (TREC) programs from the United States Department of Energy (DOE). These grants, provided under the Biden Administration’s Inflation Reduction Act (IRA), will fund energy efficiency and electrification programs for low-and-moderate-income communities, helping save money on utility bills, and bolster energy efficiency workforce development programs in New Jersey. 

 

“These grants further our goal of making clean energy affordable and accessible to all New Jerseyans, no matter the zip code, and support my Administration’s goal of electrifying 400,000 dwelling units by 2030,” said Governor Phil Murphy. “These programs will save customers money on utility bills and bolster our clean energy workforce. I’m grateful for the Biden Administration’s commitment to clean energy goals.”

 

“This $185 million New Jersey grant is nothing short of transformative,” said NJBPU President Christine Guhl-Sadovy.  “One of the cornerstones of our clean energy portfolio and workforce has been, and continues to be, our energy efficiency programs.  This historic grant award will help lower bills and drive long-term utility bill stabilization for New Jersey ratepayers, especially low-and-moderate-income households. Thank you to the Biden Administration for following through on their climate and clean energy commitments, bolstering their already considerable legacy of advancing smart and bold policies to advance affordability and make everyday life easier for all of us.”

 

The award amounts for these three grant programs are:

  • $91,654,709 in HER funding,
  • $91,307,380 in HEAR funding, and;
  • $3,517,680 in TREC funding.

 

The NJBPU is the implementing state agency for the grants and is developing the final design for these three programs. The rebates are anticipated to be available in the fall of 2025. On December 18, 2024, the Board approved the release of a request for quotations for program administration for the HER and HEAR programs.

 

“We applaud this exciting investment to boost home energy efficiency in the communities where it is needed most,” said Kelvin Boddy, Director of Healthy Homes and Communities for the Housing and Community Development Network of NJ. “Lower income households are more likely to reside in New Jersey’s older housing stock which typically are not equipped with the latest energy efficiency methods. Soaring utility costs, especially during extreme temperatures, are a severe hardship for these households. This will bring welcome relief to many more families across the state.”

 

“Now more than ever, New Jersey needs to invest in cost-saving energy efficiency and building electrification - prioritizing the savings for the families that need it most. We commend the BPU for securing $183 million in efficiency rebate funding to reduce emissions and saving customers money while transitioning to our clean energy future,” said Ed Potosnak, Executive Director, New Jersey LCV. "Low-income communities and communities of color have for too long paid the price for our reliance on dirty fossil fuels, experiencing a disproportionate health burden from dirty air including asthma, heart disease, and cancer. The BPU's rebate programs, combined with existing weatherization programs, are essential for not only improving air quality and lowering emissions, and importantly for reducing hardworking families' monthly bills.”

 

"This funding will supercharge the Garden State’s energy efficiency efforts,” said John M. Kolesnik, Policy Counsel for the Energy Efficiency Alliance of New Jersey. “By stacking these rebates with existing Triennium 2 utility programs and adding new incentives to the Comfort Partners program, New Jersey will accelerate progress toward reducing energy consumption, cutting costs for residents, and achieving a more sustainable energy future. These rebates support a transformative shift toward a resilient energy economy by enhancing energy independence, promoting electrification, and creating opportunities for local workers and contractors in the energy efficiency and weatherization sectors."

 

The $8.8 billion Home Energy Rebates program, established by the IRA, created two separate rebate programs, HER and HEAR, to reduce costs and encourage consumers to implement energy conservation measures and switch to decarbonized heating and cooling technologies.  New Jersey’s historic $183 million award is anticipated to fund two programs benefiting low-income ratepayers:

  • M-RISE - a start-up program that is anticipated to support whole building energy efficiency projects for low-income multifamily homes, including garden-style, mid-rise, and high-rise housing stock. A combination of building envelope, common space, and in-suite measures could be used to secure comfort, affordability, and low-carbon appliance improvements. These measures could include wall insulation, duct repairs, mini-split/air source heat pumps, and heat pump water heaters.
  • CP-HEAR - an anticipated electrification adder to New Jersey’s existing low-income energy efficiency program, Comfort Partners, which has served more than 126,000 income-qualifying homes to date.  CP-HEAR will make eligible homes served by the Comfort Partners program electrification-ready by upgrading their electric panels and wiring. Additionally, Comfort Partners would focus new outreach efforts on low-income delivered fuel and electric resistance customers and offer to convert their space and water heating to heat pumps. Specific program design measures will follow all DOE award and program guidelines.

 

The NJBPU’s TREC award is anticipated to distribute funds to qualifying New Jersey workforce training centers, via competitive grants, to enhance their infrastructure and support the growth of a skilled energy efficiency workforce in the state. The initial TREC program design is anticipated to upskill, reskill, and newly train energy efficiency contractors, fostering an equitable workforce that meets the state's energy efficiency goals.

 

The HER and HEAR funding is another key building block in New Jersey’s robust energy efficiency portfolio, delivering cost savings to consumers by reducing energy use. Triennium 2 (T2) is the second cycle of the State’s multi-year utility-run energy efficiency programs. Established by the Clean Energy Act of 2018, natural gas utilities must achieve energy savings of 0.75% and electric utilities must achieve energy savings of 2% of the average annual usage in the prior three years within five years of implementation of their energy efficiency programs.

 

Collectively, over $3.75 billion has been budgeted for T2 programs and will be implemented over a 30-month period from January 1, 2025 through June 30, 2027. This investment, accompanied by this historic $183 million award, will help the State achieve Governor Murphy’s goals outlined in Executive Order 316 and are anticipated to reduce annual electricity usage by 2.3 million megawatt hours, annual natural gas usage by 8.9 million MMBtu, and annual greenhouse gas emissions by 1.5 million metric tons.

 

It is estimated that Triennium 1 (T1) programs, which have concluded, disbursed $1.25 billion in financial incentives to ratepayers statewide and reduced annual electricity usage by 3 million megawatt hours, equivalent to the use of approximately 330,000 households per year, annual natural gas usage by 8.5 million MMBtu, and customers’ utility bills by $600 million. T1 resulted in 1.4 million metric tons of annual greenhouse gas emission reductions, which is equivalent to approximately 300,000 cars removed from the road per year.   

 

For more information about State and utility-led efficiency programs, please visit:  https://www.njcleanenergy.com/EEP

 

About New Jersey’s Clean Energy Program (NJCEP)

NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.

 

About the New Jersey Board of Public Utilities

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.