NJEDA Board Launches Grant Program to Support Large-Scale Decarbonization and Energy Efficiency Projects

Aimed at reducing greenhouse gas emissions and energy costs, RETROFIT NJ will expand upon the efforts of the existing NJ Cool program

TRENTON, N.J. (October 9, 2025) – Building upon the New Jersey Economic Development Authority’s (NJEDA) efforts to bolster the state’s clean energy economy, the Board approved a new program today aimed to reduce greenhouse gas emissions and energy costs. The Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program will support multi-pronged, large-scale retrofit projects that enable holistic energy improvements for buildings, campuses, and multi-building facilities, expanding upon the efforts of the existing NJ Cool program.

“New Jersey is leading the nation in building a cleaner and more resilient future,” said Governor Phil Murphy. “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.”

“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,” said NJEDA Chief Executive Officer Tim Sullivan. “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.”

RETROFIT NJ will offer grant awards between $2.5 million and $12.5 million to commercial, industrial, and institutional building owners undertaking retrofit projects with a minimum total project cost of $5 million. Eligible projects must include at least three clean energy or electrification components, such as solar, energy storage, electrification of heating, refrigerant replacement, and energy efficiency upgrades. RETROFIT NJ will also provide support for projects implementing Thermal Energy Networks (TENs), an emerging technology that can significantly reduce emissions across multiple buildings. This program is the largest government construction grant program available for TENs in the country with up to $12.5 million available per project, demonstrating New Jersey’s strong leadership in advancing cutting-edge technology solutions to climate change.

“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.”

Currently, the NJ Cool program provides financial assistance to commercial, industrial, and institutional building owners and tenants undertaking retrofit construction projects that reduce operating greenhouse gas emissions from existing buildings in State-designated Overburdened Communities (OBCs) and Adjacent Community census blocks.

Since its launch in 2023, NJ Cool has been a popular program, receiving a high-volume of applications for smaller to medium-sized building decarbonization projects. The NJEDA has expanded the program’s eligibility requirements and infused an additional $15 million to support the program. With support from the NJ Cool program, awardees in Edison and Newark have utilized grant funding to make energy-efficient improvements, such as replacing natural gas heating, ventilation, and air conditioning (HVAC) units with electric units, installing solar panels, and replacing existing natural gas boilers with an electric variable refrigerant flow (VRF) system. Further examples of successful NJ Cool projects can be found on the NJ Cool webpage under the “Completed Projects” tab. The RETROFIT NJ program will complement NJ Cool by supporting larger, complex building decarbonization projects that fall outside the scope of limitations for NJ Cool.

The RETROFIT NJ program will utilize $75 million in Regional Greenhouse Gas Initiative (RGGI) funds, with 50 percent of the funding pool designated for applications submitted for projects in OBCs and/or for Institutional applicants for a one-year period. Funding provided by the program will cover both hard and soft project costs, including design, engineering, equipment, construction, and commissioning. Non-profit and institutional applicants will receive up to 60 percent reimbursement, while for-profit commercial entities are eligible for up to 50 percent reimbursement, with an additional 5 percent bonus for all projects located in OBCs. Applications will be accepted on a rolling basis with phased disbursement.

Applications for RETROFIT NJ are expected to open in the first quarter of 2026. For more information and a complete list of eligibility requirements, click here.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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