The New Jersey Economic Development Authority (NJEDA) Board has approved a new grant program designed to support large-scale decarbonization and energy efficiency projects in the state. The Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program aims to reduce greenhouse gas emissions and energy costs by funding multi-faceted retrofit projects for buildings, campuses, and multi-building facilities. This new initiative expands on the existing NJ Cool program.
Governor Phil Murphy said, “New Jersey is leading the nation in building a cleaner and more resilient future. The RETROFIT NJ Grant Program strengthens our commitment to reducing emissions, cuts energy costs, and drives innovation across our state. By investing in retrofit projects, we are not only protecting our environment, but also creating good-paying jobs and lowering costs for families and businesses.”
Tim Sullivan, Chief Executive Officer of NJEDA, stated, “Under Governor Phil Murphy’s leadership, New Jersey has made great strides in saving businesses money, lowering our carbon footprint, and fostering a cleaner and greener state. Programs such as RETROFIT will establish New Jersey as a national leader in large-scale building decarbonization efforts, while spurring economic activity and creating jobs.”
The RETROFIT NJ program will provide grant awards ranging from $2.5 million to $12.5 million for commercial, industrial, and institutional building owners who undertake retrofit projects with a minimum total project cost of $5 million. Projects must include at least three clean energy or electrification components—such as solar panels, energy storage systems, heating electrification, refrigerant replacement, or energy efficiency upgrades. Support is also available for projects that implement Thermal Energy Networks (TENs), which can reduce emissions across multiple buildings. Up to $12.5 million per project is available for TENs, making this the largest government construction grant program for TENs in the United States.
Kathleen Coviello, NJEDA Chief Economic Transformation Officer, said, “New Jersey is committed to combating climate change through impactful programs that aim to reduce our carbon footprint and promote a greener state. With today’s approval of the RETROFIT NJ program, we’re expanding access to energy-efficient upgrades, strengthening our communities and economy, while helping businesses reduce energy use and save money.”
The current NJ Cool program offers financial assistance for retrofit construction projects that lower greenhouse gas emissions from existing buildings located in State-designated Overburdened Communities (OBCs) and adjacent census blocks. Since its start in 2023, NJ Cool has received many applications for smaller- to medium-sized projects. The program’s eligibility requirements have been broadened, with an additional $15 million added to support it. Awardees in places like Edison and Newark have used grant funds for projects such as replacing natural gas HVAC units with electric ones, installing solar panels, and upgrading to electric variable refrigerant flow systems.
RETROFIT NJ will use $75 million from the Regional Greenhouse Gas Initiative (RGGI). Half of the funding is reserved for projects in OBCs or institutional applicants during the first year. Grants will cover both hard costs (like equipment and construction) and soft costs (such as design and engineering). Non-profit and institutional applicants may receive up to 60 percent reimbursement; commercial entities are eligible for up to 50 percent reimbursement, with an extra 5 percent bonus for projects located in OBCs. Applications will be accepted on a rolling basis with phased payments.
Applications for RETROFIT NJ are expected to open in the first quarter of 2026.
“New Jersey is committed to combating climate change through impactful programs that aim to reduce our carbon footprint and promote a greener state,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “With today’s approval of the RETROFIT NJ program, we’re expanding access to energy-efficient upgrades, strengthening our communities and economy, while helping businesses reduce energy use and save money.”
For more information about eligibility requirements or how to apply for the RETROFIT NJ Grant Program when applications open in 2026, visit the NJEDA website.
