NJBPU Creates Single Gateway for Builders Pursuing Net-Zero Construction Goals

On Oct 8, 2025

The New Jersey Board of Public Utilities (NJBPU) announced the details of its groundbreaking New Construction Program (NCP), a comprehensive initiative designed to transform the state’s building landscape by incentivizing energy-efficient construction and supporting New Jersey’s clean energy goals.

The NCP creates a single point of entry for builders, developers, and project stakeholders to access financial incentives for energy-efficient new construction and major renovation projects across the residential, multifamily, commercial, and industrial sectors.

“The New Construction Program represents a pivotal step forward in making high-performance buildings more affordable and comfortable for New Jersey residents and businesses,” said NJBPU President Christine Guhl-Sadovy. “By consolidating our previous programs and offering enhanced incentives, we’re creating clear pathways for builders to deliver energy-efficient buildings that reduce utility costs, improve indoor comfort, and support those who choose to pursue clean energy options.”

The NCP replaces and consolidates several existing NJBPU programs, including Residential New Construction, SmartStart, and Pay for Performance, offering three distinct pathways tailored to different project types and performance levels:

• Bundled Pathway: Combines multiple energy conservation measures for commercial and industrial buildings.
• Streamlined Pathway: Simplifies the process for straightforward projects with energy conservation measures.
• High-Performance Pathway: Provides the most generous incentives for projects achieving nationally recognized certifications.

Incentives range from $1.00 per square foot for buildings that are ENERGY STAR® certified or meet LEED V4.1 standards, up to $2.50 per square foot for projects that achieve Phius (Passive House Institute US) certification. Builders can also get additional bonuses for things like greenhouse gas reduction, affordable housing projects, or for industrial and high-energy intensity buildings located in priority zones.

The NCP strongly emphasizes decarbonization technologies, offering bonus incentives for projects incorporating all-electric systems such as heat pumps, helping support builders or homeowners who choose to pursue highly efficient and decarbonized air and water heating systems. This strategic focus directly supports New Jersey’s goal of electrifying 400,000 residential units and 20,000 commercial spaces by 2030.

Workforce Development Investment

Recognizing the importance of skilled professionals in achieving high-performance building standards, the NCP includes robust workforce development components. The program offers reimbursements up to $2,000 per course for training and certifying builders, consultants, and raters in advanced energy efficiency practices and certification programs.

Program History

In 2007, New Jersey enacted the Global Warming Response Act, which mandates an 80% reduction in greenhouse gas emissions from 2006 levels by 2050. Buildings are a significant contributor to these emissions, accounting for roughly 30% of the state’s total energy consumption. By promoting the development of highly efficient, all-electric buildings, the NCP will play a crucial role in reducing emissions and improving indoor air quality.

Application Process

Eligible projects include ground-up new construction for single-family homes, townhomes, multi-family buildings, and commercial and industrial facilities, as well as major gut rehabilitations meeting specific criteria.

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