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New Jersey Clean Energy Program: Everything You Need to Know

nj home performance with energy star

Energy Star-rated appliances are considered energy-efficient products which can be used against cashback in New Jersey. If you would like to improve the energy efficiency of your home and reduce the utility bills you keep getting every month, you should check out New Jersey’s incentives and rebates for energy efficiency upgrades. The clean energy program offers $5,000 worth of cash-back and up to $15,000 worth of interest-free loans. 

Many New Jersey households are old and not energy efficient. The most notable issue that can reduce the energy efficiency of your home is the insulation. After this, the appliances are the biggest energy wasters in your home. Followed by lighting, these inefficient solutions can increase your energy spending by more than 3-fold. To learn how to increase your energy savings, you should consider getting an energy audit for your home. 

The insulation material in your home may be old or not as efficient as it was decades ago. The thing is that most insulation materials degrade over time and may need to be replaced once every 15-20 years. Contact a contractor and see what kind of insulation material your home has.- You may not need to replace it, after all, but knowing is better than guessing. 

The second energy gulper in the home is your appliances. Older electrical appliances may not be considered Energy Star-efficient today. These appliances may use energy even when not turned on (vampire load) and may cost you a lot of money to run, even when you are not around. The situation is the same with gas-powered appliances, which may not be as efficient as their modern counterparts. 

Aside from your major appliances and the energy they spend in standby mode, other smaller appliances can also be old and outdated. Replacing these can also help you save money and reduce energy use. Some appliances that you should replace every 5-10 years for models with higher energy efficiency include: 

Although it may not seem like much, purchasing more energy-efficient models can be seen on your energy bill – as a reduction of how much energy you spend every month. 

New Jersey’s Clean Energy Program

NJ Clean Energy Program is a program aimed at reducing energy consumption and energy costs in single and multi-family homes in the state of New Jersey. Regardless of the project costs, you can apply for as long as you live in New Jersey. The state offers access to the program. Here is how much you can save with the NJ Clean Energy Program: 

Energy SavingsCash BackFinancing Incentive
Less than 5%NoneNone
+ 5% $2,000+ $150 for each percent above 5% [Maximum cashback: $5,000]$10,000 with 0% interest rate on a 7-year term, or $15,000 with 0% interest rate on a 10-year term

Possible cash back values with different percentages of energy savings

Appliance Rebates

If you decide to join the program, you can use it for appliance rebates. When it comes to your new appliances, they should be Energy Star-certified. You can use the program for the following appliances: 

  • Washers, 
  • Dryers, 
  • Refrigerators, and 
  • Energy-efficient lighting. 

Appliance Recycling

The Clean Energy Program also allows you to get financial incentives for recycling your old appliances. Under the program, more than 90% of your home appliances can be recycled and awarded a financial incentive. Depending on the appliance, you can get $50-$300 back. 

Lighting Discounts

If you still use old, incandescent light bulbs, you may want to consider replacing them with energy-efficient LEDs. This way, you will be able to save around 90% of the energy used in your household for lighting. Each light bulb can save an estimated $55 in its lifetime. Multiply that by the number of light fixtures in your home and you’ve got yourself a fancy reason to join the Energy Star program. 

Under the Energy Star program, you can purchase LEDs with a nice discount in the following retail shops: 

  • Costco, 
  • Sam’s Club, 
  • Target, 
  • The Home Depot, 
  • Walmart, 
  • BJ’s Wholesale Club, and 
  • Lowe’s. 

If this is your first time purchasing an LED, and you are used to that warm light of an incandescent light bulb, you should pay attention to color temperature. Color temperature is stated in K (Kelvins) and it typically ranges from 1,500K to 6,000K. Daylight has a color temperature of about 3,000K, while warm incandescent light bulbs have a light temperature reading of about 2,700K. Most people find this type of LEDs the most comfortable to the eye. Going with values over 3,000K may keep you up at night. 

HVAC Instant Rebates

In case you are considering replacing your HVAC system, you can receive rebates on it as well. You can choose an instant rebate of up to $900. Additionally, you can go for a no-interest, on-bill repayment with works and equipment worth up to $15,000. Contact your local participating sponsor and see what option works best for you. HVAC rebates can include replacing entire units but also fixes as small as installing a furnace fan or a smart thermostat. 

Construction Upgrades

The Clean Energy program also allows you to get rebates and other financial incentives (such as 0% interest loans) for construction upgrades as well. These upgrades include: 

  • Heating and cooling systems, 
  • Residential water heating systems, 
  • Energy-efficient air filtration, 
  • High-performance windows, 
  • Ductwork, 
  • Insulation works and materials. 

Comfort Partners

Comfort Partners is a program under the Clean Energy Program, which allows low-income households to participate and get free services for energy improvements. If you make less than 225% of the state poverty line, you can apply for the program. You should understand that each home is assessed differently and that you can use the program for partial funding of: 

  • Insulation, 
  • Cooling equipment, 
  • Heating equipment, 
  • Replacing old and outdated appliances, 
  • Water heating equipment, and much more. 

Home Weatherization

When it comes to home weatherization, you should know that this takes the most time and the most money. If you currently want an easy fix, you may want to focus on replacing your appliances. Needless to say, investing in home weatherization will pay off the most, as you will see a significant decrease in your energy bills both in the winter and summertime. Here are eligible home weatherization works: 

  • Installation of a smart thermostat, 
  • Insulation of walls, basement, and attic, 
  • Ductwork sealing, 
  • Heating and cooling equipment air-filter changes, as well as replacing these systems with energy-efficient major appliances, 
  • Air sealing of your windows and doors, and 
  • Many more. 

Home Performance with ENERGY STAR [HPwES]

The Home Performance with Energy Star is a program that is available to NJ residents. The program allows a free energy audit and many more metrics of your home to be taken from your home, in order to improve: 

  • Your energy use, 
  • Your health, and 
  • Comfort levels in your home. 

You may have noticed that the temperature in the rooms is not equal, or that your energy bills are too high. You may also experience a stagnant smell in your home despite airing the rooms frequently. The air can also be polluted, smelly, or otherwise unpleasant. Mold and mildew can start developing behind pieces of furniture or appliances that are straight up a wall. If this is the case, you should join the program. A professional will come to your home and inspect: 

  • Carbon monoxide levels
  • Moisture levels throughout your home, 
  • Overall indoor air quality (such as the presence of PM particles), 
  • Hot and cold spots, 
  • Insulation levels and state in your walls, basement, and attic, 
  • Air leakage around door and window frames, 
  • Cooling system efficiency, 
  • Heating system efficiency, 
  • The residential hot water system, 
  • The age and state of your appliances (you will be notified if any of them represent health hazards). 

Participating Contractors

You may find it difficult to find contractors participating in the Home Performance with Energy Star. If this is the case, you can also find them online and save time. There are hundreds of contractors working in NJ that can do the work for you. 

Local Program Sponsors

Local program sponsors are all utilities and other power companies which enable you to use their services to join and get a rebate or an incentive from the program. There are many such sponsors throughout the country, so make sure to check this list. Here are the New Jersey Home Performance sponsors: 

Beware that this list can be expanded over time. Contact your local utility company to find out if they sponsor the program. 

Incentives & Rebates

Each of the sponsors offers at least one program which is in line with the Clean Energy Program. Here is a list of programs you can look for to reduce your bills and replace major appliances, such as HVAC equipment, heat pumps, etc: 

  • Atlantic City Electric Home Performance Program, 
  • Elizabethtown Gas Home Performance Program, 
  • New Jersey Natural Gas – the SaveGreen Project, 
  • PSE&G New Jersey (a number of programs, and 
  • South Jersey Gas Home Performance with ENERGY STAR. 

How Does the HPwES Program Work?

The Home Performance program works in steps. First of all, you should apply for the program. You schedule a home energy audit or assessment with a participating sponsor or contractor. Then, the assessment is carried out. Within days, to two weeks, you will receive a list of recommendations that should make your home more energy-efficient. Upon home evaluation, you will be eligible for rebates of up to $5,000 and interest-free loans, and on-bill repayment for up to $15,000. 

Eligibility Requirements

Eligibility requirements say that you should be making at most 225% of the Federal Poverty Line income to be able to participate in the program. You should also have a home that has not been energy-optimized. Besides this, the eligibility requirements may differ from country to country, so check out the list of participating sponsors and inquire about the exact requirements in your area. 

Eligible Home Improvements

Any home improvement that can reduce energy use, and increase your health and your comfort level can be considered eligible for the HPwES program. Among these improvements are: 

  • Home weatherization, insulation, caulking, and ductwork, 
  • Replacing major appliances or making them more energy-efficient (installing smart thermostats, heat pumps, old gas furnaces, and other heating or cooling bodies, replacing old water heaters (especially for solar ones), 
  • Replacing large home appliances (such as your washer, dryer, stove, oven, etc.). 

How to Participate in the Program?

To participate in the program, you should schedule an energy audit with one of participating sponsors. Once your home has been checked and evaluated, you will be able to join the program. You should make a list of the desired changes and pay attention to how much energy you could be saving with the changes/adaptations to your home. Any change under 5% of energy use improvement will not be eligible for the program. 

What is an Energy Star Rated Appliance?

An Energy Star appliance is any appliance that meets or exceeds energy-efficiency guidelines coming from the EPA – Environmental Protection Agency. These appliances improve your home performance and reduce energy use – all at once. Energy-star-rated appliances have low-voltage electronic sensors, displays, and very energy-thrifty standby modes. In addition to this, they also use very little energy when operating. 

Benefits of  Energy Star Appliances

Energy Star appliances have many benefits to offer you. They are made to follow or exceed the energy use guidelines stated by the Environmental Protection Agency. The benefits of purchasing an Energy Star-rated appliance include: 

  • Lower energy use, 
  • Lower energy bill, 
  • Reduced carbon footprint, 
  • Being able to save more money with each new energy bill, 
  • Living in a safer and healthier environment. 

Installing energy-efficient upgrades can cost a lot, so always make sure to consider factors such as how much time it will take to break even. If a device has cost you $2,000 and saves $400 on your energy bill every year, it will take 5 years to pay off. It makes financial sense for New Jersey homeowners to start with changes that pay off the fastest. This way, you can maximize your savings and finish the energy improvement of your home the fastest. 

FAQs

Do I Need a Permit to Install Solar Panels in NJ?

You need a construction permit to install solar panels in NJ. This permit should consist of building, fire, and electrical applications. The process takes a short time and you will be able to save energy in no time and with no energy-efficient upgrades. 

Which Clean Energy is the Best?

Any clean energy is better than fossil fuels. However, not all forms of clean energy are created equal. Solar energy, as well as wind energy, can reduce your energy bills and make your home energy-efficient with very little (relative) investment. With a number of financing incentives, there is no reason not to go solar today. 

Is Switching to Clean Energy Cheaper?

Switching to solar energy is a big upfront cost that not many should be able to undertake as an out-of-pocket payment. For this reason, a number of financial incentives and financing incentives exist. Long-term speaking, your energy bills will be much lower, and you will be able to be more energy efficient and save more money than invested. 

What are 3 Problems with Renewable Energy?

Intermittency, lack of storage, and lack of infrastructure are the biggest problems that renewables face today. Sun does not always shine and the wind does not always blow. Energy storage is very expensive and it can pose an additional $21,000+ for a family using 30 kWh a day. The infrastructure is old and outdated and may not be sufficient enough to support all the energy-efficiency upgrades. 

Conclusion

Living in an energy-efficient home enables you to make significant energy savings. Participating in the Energy Star program allows you to do exactly this, by reducing the project costs and eliminating interest that you would otherwise have to pay. Now, you can save money by replacing your HVAC equipment, water heaters, and many more and by boosting your home performance. 

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