Official Site of The State of New Jersey
by Timothy Pierce
New Jersey is establishing itself as a leader in the clean energy sector by offering programs that help those within New Jersey save energy, money, and the environment. For those looking to venture into the cannabis industry, particularly as Class 1 Cultivators or Class 2 Manufacturers, the state's position on clean energy can offer substantial benefits.
New Jersey's Clean Energy Program (NJCEP) promotes energy efficiency and the use of clean, renewable sources of energy, including solar and wind. For cannabis cultivators and manufacturers, NJCEP’s energy efficiency programs offer dual benefits: reduced operational costs and a more sustainable business model. NJCEP’s financial incentive programs for new construction and gut-renovation projects can be particularly helpful for those in the cannabis industry.
Programs
Programs are available to address the whole building’s energy efficiency or a bundle of specific measures. There is a large outreach team that can walk each project through their best-fit pathway to savings and support the overall process of receiving the financial incentives. In the coming year, the programs will merge into a single New Construction Program to simplify the process further. The largest savings are through the whole building options where simulated computer models for planned buildings allow their final design to perform better than a minimally code-compliant building.
The prescriptive program pathway provides the opportunity for fixed and savings-based incentives for selecting energy-efficient equipment for building systems in new construction and substantial renovation projects. For cannabis manufacturers, this includes custom projects that optimize energy use in their facilities. By taking advantage of these incentives, manufacturers can reduce their energy consumption, lower their utility bills, and contribute to a cleaner environment.
Other programs available through NJCEP that may benefit cannabis business owners include the Large Energy Users Program, Commercial Energy and Water Benchmarking program, and Combined Heat and Power/Fuel Cells Program. In addition, cannabis business owners can apply for financial incentives for prescriptive and/or custom energy efficiency measures from New Jersey’s public electric and gas utility companies.
New Jersey's energy efficiency programs provide a valuable framework for cannabis cultivators and manufacturers to enhance their operations. By taking advantage of the available incentives and programs, these businesses can lead the way in sustainable practices within the cannabis industry, contributing to a greener and more prosperous New Jersey. With support from NJCEP and New Jersey’s utility companies, cannabis businesses can play a pivotal role in shaping a more environmentally friendly and economically sound future for the state.
Benefits for Cultivators and Manufacturers
The energy demands of indoor cannabis cultivation are substantial, with lighting, climate control, and irrigation systems consuming large amounts of electricity. By leveraging NJCEP's and utility programs, cultivators can implement energy-efficient technologies that reduce operational costs.
The manufacturing process can be energy-intensive, particularly when it involves extraction, processing, and packaging. Implementing energy-efficient equipment and processes can lead to significant cost reductions and a smaller environmental footprint.
Previous Blog Posts
Growth, Equity, and Impact: NJ-CRC 2024 Year in Review
01/7/2025
As we begin 2025, the New Jersey Cannabis Regulatory Commission (NJ-CRC) is proud to reflect on 2024, a year marked by growth, equity and impact. From expanding public outreach to increasing access of information to continuing to emphasize our safe-use messaging, we’ve taken significant steps to ensure the state’s cannabis market remains equitable, transparent, and thriving. 2024 brought pivotal changes in leadership, new initiatives that strengthen community and industry ties, and a continued focus on compliance and enforcement. Join us as we take a look back at the milestones that defined the past year and share our vision for what’s ahead in New Jersey’s cannabis industry.
What Could 2% Do For Your Municipality?
11/14/2024
As New Jersey’s cannabis industry continues to expand, municipalities have the unique opportunity to shape how cannabis businesses operate within their communities – and how their towns can benefit from the resulting additional tax revenue. Under the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA), municipalities have the choice to “opt in” to allowing cannabis businesses in their jurisdiction and taxing those businesses up to 2% on sales. The legislation allows municipalities to tap into potential economic benefits while retaining control over how and which cannabis businesses operate in their communities.
Social Equity Excise Fee (SEEF)
10/28/2024
The Social Equity Excise Fee (SEEF) is a mandatory fee imposed by the NJ-CRC on cannabis cultivators, established under N.J.S.A. 17:30-3.4 of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) and in accordance with N.J.S.A. 54:47F-1. The SEEF is collected from cannabis cultivators in New Jersey, based on the quantity of cannabis produced. The rate of the fee was initially set at $1.10 per ounce of cannabis and was adjusted to $1.52 per ounce in 2023. Currently, it stands at $1.24 per ounce.
