NJ: NJEDA Board Approves Garden State C-PACE Program, Adding to Suite of Clean Energy Programs

The New Jersey Economic Development Authority (NJEDA) Board recently approved the creation of the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will allow commercial property owners to access a new form of financing to undertake energy efficiency, water conservation, renewable energy, and resiliency upgrades, supporting Governor Phil Murphy’s efforts to transition to 100 percent clean electricity in the state by 2035.

“After seeing the success of C-PACE programs across the country, I was proud to sign legislation into law to establish the program in the Garden State,” said Governor Murphy. “The time for bold, innovative actions that will help thwart the effects of climate change is now. The Garden State C-PACE Program will lead to a greater embrace of clean energy measures that will help improve our communities, while saving money for New Jerseyans.”

“Under Governor Murphy’s leadership, New Jersey has set ambitious clean energy goals, unlocking opportunities in emerging industries to create economic growth and high-quality jobs while protecting the environment for future generations,” said NJEDA Chief Executive Officer Tim Sullivan. “The Garden State C-PACE program will serve as a catalyst for private investment into building decarbonization, renewable energy, and resiliency projects, helping to reduce energy costs and stimulate the economy.”

The Garden State C-PACE Program allows property owners to repay investments from Qualified Capital Providers into eligible projects through a special assessment to a Participating Municipality, similar to the owner’s real property tax, sewer, or water bill. The Participating Municipality then remits the payment to the initial capital provider. This unique form of financing results in lower-cost, longer-term financing, making it easier for projects to be cashflow-positive from the outset. Municipalities are required to opt-in prior to any project application.

In 2021, Governor Murphy signed legislation authorizing the establishment of the C-PACE Program. Over the past decade, C-PACE programs in more than three dozen states have proven an effective tool to attract private capital into the renewable energy, energy efficiency, and resiliency markets. To date, according to the non-profit entity PACENation, there have been 3,340 C-PACE projects throughout the United States, which have drawn a collective investment of $7.2 billion and have created more than 88,700 job-years.

“The Garden State C-PACE program is a game changer for New Jersey, making it easier for property owners to embrace energy efficiency and sustainability without the burden of upfront costs. This will fuel our state’s green transformation, help companies further embrace new technologies, and create jobs,” said Senator Raj Mukherji. “I applaud Governor Murphy for his continuing steadfast commitment to clean energy and for implementing this law. The program will catalyze significant energy cost savings and strengthen our state’s environmental resilience.”

"Across New Jersey, property owners want to transition their buildings to clean energy and to be more energy efficient, but are too often held back by upfront costs," said Senator Bob Smith, Chair of the Senate Environment and Energy Committee. "Thanks to the NJEDA's approval of this program, New Jersey will join the dozens of other states that utilize C-PACE to assist their citizens to more rapidly transition their properties, enjoy the benefits of clean energy, and combat the effects of climate change."

“New Jersey’s new C-PACE program builds upon the Murphy Administration’s commitment to create more opportunities for innovative clean energy projects across the state,” said Eric Miller, Executive Director of the Office of Climate Action and Green Economy. “With this program, we can continue to grow our green economy, while at the same time achieving our ambitious climate goal of lowering emissions 50% by 2030.”

“The Garden State C-PACE Program facilitates an innovative approach to making clean energy choices more financially accessible to commercial property owners and supporting continued job growth in the clean energy sector, which supports the long-term goals identified in the Global Warming Response Act 80x50 Report that aims to reduce greenhouse gas emissions by 80 percent by 2050,” said New Jersey Environmental Protection Assistant Commissioner for Community Investment and Economic Revitalization Elizabeth Dragon. “My DEP colleagues and I encourage eligible property owners to explore the opportunities through C-PACE that will foster a more sustainable future and enhance the quality of life for New Jersey residents.”

The Garden State C-PACE Program’s Participating Municipality, Qualified Capital Provider, and Qualified Technical Reviewer Intake forms are expected to launch soon, with the project application following shortly thereafter. For more information, including eligibility requirements and program guidelines, visit https://www.njeda.gov/c-pace/ or email Gardenstatecpace@njeda.gov.