NJ Clean Energy Program for Businesses: What Pairs With Solar

Many New Jersey owners search for the NJ Clean Energy Program expecting one rebate catalog. As of 2026, the support for commercial buildings is split between the state program, run under the Board of Public Utilities (BPU), and energy efficiency programs run by the electric and gas utilities. Both can matter to a solar project, because the load you have after efficiency upgrades is the load your array should be sized against.

This guide explains what each side offers businesses today, how efficiency work connects to solar sizing, and how it sits next to the state solar incentive. Program terms change, so treat this as a starting map and check the current BPU and utility pages before you commit.

What the NJ Clean Energy Program offers commercial buildings in 2026

The New Jersey Clean Energy Program (NJCEP) is the statewide program funded through the societal benefits charge on utility bills and overseen by the BPU. Its website has moved to cleanenergy.nj.gov. For commercial, industrial and institutional buildings, the state-run offerings listed there as of 2026 include:

• New Construction Program: support for designing energy efficient new commercial buildings.
• Large Energy Users Program: incentives that encourage large customers to invest in efficiency at their own facilities.
• Local Government Energy Audit: no-cost energy audits for local government agencies, state agencies and K-12 public schools.
• Energy Savings Improvement Program (ESIP): a form of energy performance contracting for government entities.
• Energy and water benchmarking: a reporting requirement, not a funding program, that applies to commercial buildings in New Jersey larger than 25,000 square feet.

The program page lists the Combined Heat and Power and Fuel Cell incentive as closed. Eligibility, funding levels and open or closed status are set by the BPU and can change during an energy year, so confirm each item on the current program page.

Utility-run efficiency programs and NJ clean energy rebates

Under the Clean Energy Act of 2018, New Jersey’s investor-owned electric and gas utilities took over most core energy efficiency programs for homes and businesses. Their first program cycle, known as Triennium 1, launched in 2021. On October 30, 2024, the BPU approved a second cycle, Triennium 2, which began January 1, 2025 across the seven electric and gas utilities. The Act sets savings targets for these utilities based on their average annual usage.

In practice, this means most NJ clean energy rebates for a commercial building, such as prescriptive rebates for lighting, HVAC, motors and refrigeration, and custom incentives for larger projects, now come through your utility. Each utility publishes its own business program menu, and the offerings differ between PSE&G, JCP&L, Atlantic City Electric, Rockland Electric and the gas utilities.

The Direct Install program in New Jersey

Direct install program NJ searches usually point to the small business offering that is now delivered by the utilities. Direct Install programs pay a large share of the cost of upgrades such as lighting retrofits, commercial refrigeration, HVAC systems and motors, with a contractor assigned through the program.

Eligibility is based on facility size. For example, PSE&G lists its Direct Install Program for business customers whose facility has a 12-month average peak demand under 300 kW or gas use under 40,000 therms. Other utilities set their own thresholds and terms, and PSE&G notes that its program can change without prior notice. If your building is small enough to qualify, Direct Install is often the simplest way to lower your base load before a solar design is finalized.

Why efficiency comes before solar sizing

New Jersey net metering rules tie the size of an on-site system to the electricity your account used over a historical 12-month period. If you replace old lighting or rooftop units after the solar array is built, your usage drops and the array may produce more than the building needs. Excess generation at the end of the annual period is paid at a wholesale rate, which is lower than the retail value of the same kWh used on site. Our guide to net metering in New Jersey for commercial buildings covers that annual true-up in more detail.

The practical order is usually:

• Identify efficiency measures your utility will rebate.
• Estimate the post-upgrade load profile, including peak demand.
• Size the solar array against that lower, more accurate load.
• Model the combined savings, so each dollar of capital goes to the measure with the best return.

Our commercial property analysis reviews interval data, roof condition and planned upgrades together, so the solar design reflects the building you will actually operate.

How efficiency rebates sit next to the SuSI solar incentive

Efficiency rebates and solar incentives come from different programs, and in general a building can use both. The state solar incentive is the Successor Solar Incentive (SuSI) program. Net-metered commercial systems up to 5 MW register in its Administratively Determined Incentive (ADI) program and earn SREC-IIs for each megawatt-hour produced over a 15-year term. We explain the certificate programs in NJ SRECs, TRECs and SuSI explained for commercial owners.

Federal incentives, such as the investment tax credit, apply to the solar side, and our NJ commercial solar incentives guide brings the state and federal pieces together. Rules on combining programs can change, and some rebates have their own conditions, so LandAir confirms eligibility for each account before a proposal is final.

Steps to check your eligibility

A simple checklist for a commercial owner or facility manager:

• Pull 12 months of electric and gas bills, and interval data if your utility provides it.
• Check your utility’s business efficiency page for Direct Install, prescriptive and custom options, and note the size thresholds.
• Check the NJCEP program list at cleanenergy.nj.gov for New Construction, Large Energy Users or, for public entities, the Local Government Energy Audit and ESIP.
• Confirm whether your building is subject to benchmarking.
• Check the current BPU rules for the SuSI ADI market segment that fits your planned system.
• Ask your solar contractor to size the system after the efficiency scope is known.

LandAir has supported commercial energy projects since 1996, with more than 400 projects completed, licensed professional engineers on staff and NABCEP-certified crews working out of our Cherry Hill headquarters. If you would like to see how efficiency upgrades and solar could work together on your building, request a free Savings Snapshot and we will review your usage and the programs that apply to your account.

Frequently asked questions

Is the NJ Clean Energy Program still offering business rebates in 2026?

Yes, but most core commercial efficiency rebates now come through the electric and gas utilities, under programs approved by the BPU. The state program still runs offerings such as New Construction, the Large Energy Users Program, the Local Government Energy Audit and ESIP. Check cleanenergy.nj.gov and your utility’s business page for current status.

Who runs the Direct Install program in New Jersey?

Direct Install for small businesses is delivered by the utilities under their BPU-approved efficiency programs. Each utility sets its own size thresholds and terms. PSE&G, for example, lists eligibility for facilities with a 12-month average peak demand under 300 kW or gas use under 40,000 therms.

Should I install efficiency upgrades before solar?

In most cases it helps to settle the efficiency scope first. New Jersey net metering ties system size to historical annual usage, and excess annual generation is paid at a wholesale rate, so sizing against the post-upgrade load usually gives a better return.

Can I use utility rebates and the SuSI solar incentive on the same building?

In general, efficiency rebates and the SuSI solar incentive are separate programs and a building can participate in both. Program rules can change, so LandAir confirms eligibility for each account against the current BPU and utility rules.