New Jersey: Home Performance with Energy Star Program

The New Jersey Board of Public Utilities (NJ BPU) offers a Home Performance with Energy Star Program for residents that want to improve the energy efficiency of their homes. The program is set up to provide incentives that lower the ultimate cost to consumers for the installation of energy efficiency measures identified in a comprehensive home assessment. Qualifying measures may include HVAC improvements, air sealing, the installation of better insulation, and domestic hot water systems. Appliances, lighting, doors, and windows are not eligible measures under the current program rules. This program was formerly only available for 1-4 family homes; however, it was revised in 2011 to also provide incentives for small multi-family dwellings that have 5 or more units, are three stories or less, have single ownership, and where total building energy use data is accessible.

In order to receive incentives from this program, eligible work must be performed by a BPI-certified contractor who is a registered Trade Ally of the New Jersey Clean Energy Program. Program funding is provided through the New Jersey Societal Benefits Charge (SBC) and the State Energy Program (SEP). The use of SEP funding allows the program to be serve oil, propane, and municipal electric customers through June 30, 2013. Please see the program website for further details.

Single-Family Buildings

The homeowner may receive both a cash rebate and a low-interest loan for the installation of appropriate improvements identified in the home assessment. The incentive schedule is as follows:

• Tier I - Home Assessment: A Home Assessment is required in order to be eligible for other incentives, but no incentives are available for the Home Assessment itself.
• Tier II - Total Energy Savings from 10% - 19.99%: The customer must install air sealing measures, with the option of installing insulation, duct sealing, duct sealing insulation, and water heater measures. The available incentive is $2,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $5,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).
• Tier III (Level I) - Total Energy Savings from 20% - 24.99%: The customer must install a minimum of 2 measures including air sealing from the list of program eligible measures. The available incentive is $4,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $10,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).
• Tier III (Level II) - Total Energy Savings Greater than 25%: The customer must install a minimum of 2 measures including air sealing from the list of program eligible measures. The available incentive is $5,000 not to exceed 50% of the cost of the improvements. This tier also offers 0% interest loans of up to $10,000 where utility-sponsored loans are not available (loan terms of 3, 5, 7, or 10 years).

It is important to note that while incentives are available for HVAC equipment and water heaters under the separate WarmAdvantage and CoolAdvantage incentive programs, participants may not receive multiple incentives for the same equipment.

In addition to the state program described above, some New Jersey electric and natural gas utilities administer supplemental energy efficiency programs for their customers. Prospective participants should contact their utility to see if additional incentives are available.