NJEDA Updates RETROFIT NJ Program, Increasing Funding and Paving Way for Second Phase of Program

Aligned with Gov. Sherrill’s clean energy goals, the second phase of the program will bolster efforts to reduce greenhouse gas emissions and energy costs

TRENTON, N.J. (July 28, 2026) – Last week, the New Jersey Economic Development Authority (NJEDA) Board approved modifications to the Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program to expand available funding and advance more solar generation, battery storage, and thermal energy network (TEN) projects. The changes, which will take effect when applications reopen later this summer, support Governor Mikie Sherrill’s efforts to lower energy costs, reduce greenhouse gas emissions, and provide meaningful cost relief to residents and business owners.

“Starting on her first day in office, Governor Mikie Sherrill has taken aggressive action to expand energy capacity, bolster the state’s electric grid, and lower costs for New Jerseyans,” said NJEDA Chief Executive Officer Evan Weiss. “The changes to the RETROFIT NJ Program build on the NJEDA’s existing clean energy efforts to make energy efficiency, decarbonization, and power generation projects easier and more affordable, stimulating economic growth and enhancing our long-term economic competitiveness.”

The RETROFIT NJ program utilizes Regional Greenhouse Gas Initiative (RGGI) funds to support projects that advance at least three building decarbonization components, such as solar, energy storage, electrification of heating, refrigerant replacement, and energy efficiency upgrades, or is a TEN, which connects heating, cooling and/or hot water systems across multiple buildings. Funding can cover both hard and soft project costs, including design, engineering, equipment, construction, and commissioning.

The Board approved increasing the RETROFIT NJ Program’s base funding pool to up to $225 million to support future phases of the program if demand warrants. Projects involving a TEN will remain open to commercial, industrial, or institutional buildings, while projects without a TEN will be limited to institutional applicants serving a non-profit or public purpose or private manufacturers. To better align the program with Governor Sherrill’s Executive Orders 1 and 2, which aim to expand power generation and lower energy costs, projects that do not involve TENs must now include either on-site renewable energy generation or on-site energy storage as one of three required project scope categories.

In June, the NJEDA Board approved $79 million in grant awards to ten large-scale decarbonization and energy efficiency projects under the RETROFIT NJ Program, including a combined 20.3 megawatts (MW) of solar and 86.9 MW of battery storage and supporting $238 million in economic activity. The suite of approved projects will reduce electricity usage by 30.7 million kilowatts (kW) annually, relieving strains on the state’s electric grid and lowering energy costs. $54 million of the awarded funding has been directed to projects in the state’s Overburdened Communities.

Applications for Phase II of the RETROFIT NJ Program are expected to open in Summer 2026. For more information, visit https://www.njeda.gov/retrofit/ or email retrofit@njeda.gov.

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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