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NJ SmartStart Buildings

 Program Overview

New Jersey SmartStart Buildings (R)

With New Jersey SmartStart Buildings …

… A smart start now means better performance later! Whether you’re starting a commercial or industrial project from the ground up, renovating existing space, or upgrading equipment, you have unique opportunities to upgrade the energy efficiency of the project.

New Jersey SmartStart Buildings can provide a range of support — at no cost to you — to yield substantial energy savings, both now and for the future. Learn more about:

Please note: pre-approval is required for almost all energy efficiency incentives. This means you must submit an Application Form (and applicable worksheets) before any equipment is installed (click here for complete Terms and Conditions.) Upon receipt of an approval letter, you may proceed to install the equipment listed on your approved application. Equipment installed prior to the date of the Market Manager's approval letter is not eligible for an incentive. Any Customer and/or Agent who purchases equipment prior to the receipt of an incentive approval letter does so at his/her own risk.

Getting Started

Submit your project Application Form as soon as you know you will be doing a construction project, or replacing/adding equipment.

Smart-Growth Eligibility: Check to make sure your project is eligible for incentives.

Incentives for new construction are available only for projects in areas designated for growth in the NJ State Development and Redevelopment Plan. Public school (K-12) new construction projects are exempted from this restriction and are eligible for Program incentives throughout the State.

Customers, or their trade allies, can determine if a location is in a designated growth area by referring to the Smart Growth Locator available from the HMFA website or check the State Plan Quad PDF files available from the NJ Department of Community Affairs. Contact the Market Manager if you are uncertain about project eligibility. The Smart Growth policies will be implemented consistent with Board Orders as described more fully in the C&I Operational Procedure Manual.

Apply for pre-approval by submitting an Application for the type of equipment you have chosen to install. The application should be accompanied by a related Worksheet, where applicable, and a manufacturer's specification sheet (refer to the specific program requirements on the back of the application for specs needed for your project) for the equipment you are planning to install. (Program representatives will review your application package and approve it, reject it, and/or advise you of upgrades in equipment that will save energy costs and/or increase your incentives.)

Examples in Action

Check out these sample calculations.  Which type of project might apply to you?

Design Support for Larger Projects

For large projects (over 50,000 sq. ft.) that are in the conceptual stage, we’ll work with your design engineering team to provide Comprehensive Design Support, an integrated approach that maximizes facility quality and energy efficiency. This three-step process incorporates Design Incentives to offset project engineering fees related to the analysis of premium-efficiency alternatives. New Jersey SmartStart Buildings offers incentives every step of the way:

  • Step 1: Pre-design brainstorming sessions
  • Step 2: Design simulation and screening
  • Step 3: Detailed analysis of energy-efficiency measures

All parties to Design Support (building owner, design team, and the Commercial/Industrial Market Manager will complete and sign a Design Support Agreement. 

For larger projects already beyond the conceptual stage, Modified Design Support is a streamlined process incorporating incentives and design support to encourage efficiency improvements for one or more electric end-use applications.

Multiple Measures Bonus 

The Multiple Measures bonus incentive is designed to encourage more comprehensive and integrated use of multiple energy efficiency measures. Customers who agree to install two or more energy efficiency measures from the eligible categories will receive a bonus incentive up to 15% above what would normally be entitled under either the Custom or Prescriptive Measures. Customers must agree to install measures from two or more of the following categories: lighting, lighting controls, unitary HVAC, chillers, geothermal heating and cooling, gas heating and/or cooling measures, gas water heating, motors, VFDs, and/or Custom Measures.

The Multiple Measures Bonus incentive will be up to a 15% addition to each fixed prescriptive incentive or calculated custom measure incentive (i.e., 115% of the original incentive). The total Multiple Measure bonus paid to a customer, however, shall not exceed the equipment incentive paid to that customer for any one measure category.

Requirements and Operation: Lighting must be one of the energy conservation measures (ECM) categories in new construction projects. This requirement may be waived for renovation projects if the building's lighting system has already been treated.

Technical Assistance for Smaller Projects

"No cost" services available for smaller projects (under 50,000 sq. ft.) and for projects past the preliminary design and bidding stages may include:

  • Project review and screening for NJ SmartStart Buildings eligibility
  • Suggestions for energy-efficiency measures
  • Assistance with incentive applications

Find out more about Technical Assistance!

Support for Custom Energy-Efficiency Measures

Custom Measures allows program participants the opportunity to receive technical assistance to qualify, and receive an incentive for unique energy-efficiency measures that are not on the Prescriptive Equipment Incentive list, but are project/facility specific.

Note July 23, 2009:  Effective with this notice, changes were made to the way in which NJCEP Custom Electric and Custom Gas Application incentive were calculated. In addition to using the existing screening tools, the Program Manager is using other cost effectiveness criteria including a cap of $ .16/kWh and $1.60/therm to establish the appropriate level of project incentive. These modifications were implemented to help further align the amount of incentive to the potential energy savings.

Incentives for Qualifying Equipment and Projects

In addition to design incentives, financial incentives for large and small projects are available. These incentives offset some — or maybe even all! — of the added cost to purchase qualifying energy-efficient equipment, which provides significant long-term energy savings. Ranges of incentives are available for qualifying equipment (depending on type, size, and efficiency) in several categories.

Find out more about Equipment Incentives!

For specific details on equipment requirements and financial incentives, including incentives for equipment not listed here, contact the Commercial/Industrial Market Manager. Annual financial incentives, including design, equipment, and the Multiple Measures Bonus, may be limited to a maximum of $500,000 per customer utility account and are available as funding permits.