RETROFIT NJ Program Launched to Support Decarbonization, Energy Efficiency Projects

On Oct 10, 2025

The New Jersey Economic Development Authority’s (NJEDA) Board has approved the Reducing Emissions through Retrofits, Optimization, Fuel-Switching, and Innovative Technologies (RETROFIT NJ) Grant Program, which is aimed at reducing greenhouse gas emissions and energy costs. The 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.

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.

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% 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% reimbursement, while for-profit commercial entities are eligible for up to 50% reimbursement, with an additional 5% 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.

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