Published September 1, 2026
By NZero
New Jersey is updating two of its clean energy incentive programs as the state seeks to support new infrastructure projects, expand renewable energy and storage deployment, and address energy costs for businesses and institutions. In August 2026, the New Jersey Economic Development Authority approved modifications to the Take Charge Program and the NJ Cool Program, introducing new funding requirements and placing greater emphasis on projects that combine multiple energy technologies. The changes affect private fleet electrification and building retrofit projects, two areas where businesses can face substantial upfront infrastructure costs. The announcement also comes as New Jersey continues to expand public investment in clean energy projects, with the NJEDA reporting more than $180 million invested through its programs in 2026 so far. While the updated programs are specific to New Jersey, they provide a useful example of how state incentive programs are evolving to influence the design and economics of commercial energy projects.
The Take Charge Program is a $25 million pilot program designed to help private fleets cover the costs of installing electric vehicle charging infrastructure in New Jersey. The program is funded through proceeds from the Regional Greenhouse Gas Initiative and supports commercial organizations that are building charging infrastructure for fleets with at least two commercial-use vehicles. Under the newly approved modifications, the minimum grant award per project has increased from $50,000 to $100,000. The updated program also requires projects to include on-site renewable energy generation, energy storage, or both as part of their proposed scope. According to the NJEDA, grant awards can range from $100,000 to $5 million and reimburse at least 50% of eligible project costs. Eligible expenses include Level 2 and DC fast chargers, electrical infrastructure upgrades, engineering and design work, as well as renewable generation and battery storage associated with the charging project.
The new requirements reflect some of the infrastructure considerations associated with fleet electrification. Adding multiple chargers to a commercial site can increase electricity demand, particularly when vehicles charge simultaneously or during periods of high facility demand. Requiring renewable energy generation or storage as part of funded projects encourages applicants to consider how charging infrastructure will interact with the wider energy system at the site. The NJEDA has also linked the changes to New Jersey’s interest in expanding Virtual Power Plants, which can aggregate distributed energy resources and coordinate their operation in response to grid conditions. For businesses planning fleet electrification, the updated program therefore creates an incentive structure that supports larger projects combining transportation infrastructure with on-site energy resources.
The NJEDA has also approved Phase 2 of the NJ Cool Pilot Program, which supports retrofit projects in existing commercial, industrial, and institutional buildings. The program will provide grants ranging from $50,000 to $1 million, covering 50% of eligible project costs. Eligible projects must have at least $100,000 in total eligible costs, and the Phase 2 program focuses on upgrades to heating and cooling systems alongside the installation of on-site renewable energy generation or energy storage. An additional 10% bonus, up to a maximum reimbursement rate of 60%, is available for projects completing full building electrification under the program’s criteria. Applications for Phase 2 are not yet open.
The program’s design places HVAC upgrades at the center of broader building energy improvements. Buildings can reduce direct operating emissions through measures such as replacing combustion-based heating systems with non-combustion alternatives or modernizing cooling systems and refrigerants. At the same time, Phase 2 requires projects to incorporate renewable generation or storage. This creates a project structure in which equipment upgrades and energy supply investments are considered together. Applicants are also required to provide estimates of expected operating greenhouse gas reductions and energy savings, supported by documentation such as historic energy bills and information about existing HVAC equipment. For building owners, this means project planning may increasingly require a detailed understanding of current energy consumption before construction begins.
The updates to Take Charge and NJ Cool are part of a wider portfolio of energy programs administered by the NJEDA. The agency’s RETROFIT NJ Grant Program supports larger, multi-pronged projects involving buildings, campuses, and multi-building facilities. In June, the NJEDA announced $79 million in awards across 10 large-scale RETROFIT NJ projects. The program was subsequently updated to expand available funding and support additional solar generation, battery storage, and thermal energy network projects, with Phase II applications expected to open later in 2026.
Other investments demonstrate the scale of activity underway. The NJEDA and Nuveen Green Capital recently closed a $101 million loan through the Garden State Commercial Property Assessed Clean Energy program to support energy efficiency and renewable energy projects for a new Lionsgate film studio in Newark. Separately, more than $53 million in funding had been approved through the New Jersey Zero-Emission Incentive Program in 2026, supporting the purchase of 791 zero-emission medium- and heavy-duty vehicles from New Jersey dealerships. Together, the NJEDA reported that its programs had invested more than $180 million in clean energy projects during 2026 as of the August announcement.
For businesses considering EV infrastructure or building retrofit projects, New Jersey’s program changes highlight the importance of understanding incentive requirements before finalizing project designs. Public funding can influence project economics, but eligibility criteria can also shape which technologies are included and how investments are structured. A company planning to install fleet charging infrastructure, for example, may now need to consider renewable generation or battery storage at an earlier stage of project development. Similarly, building owners pursuing heating or cooling upgrades under NJ Cool will need to evaluate how those improvements can be combined with on-site energy resources.
Businesses planning projects under these programs may need to consider several factors:
The effectiveness of these investments will vary depending on building characteristics, electricity prices, equipment performance, operational patterns, and financing conditions. However, the updated programs show how incentive structures can increasingly encourage businesses to evaluate multiple technologies within a single capital project.
New Jersey’s updates to the Take Charge and NJ Cool programs mark a significant change in how the state is supporting commercial clean energy investments. Higher funding thresholds for fleet charging projects and new requirements for renewable energy or storage create stronger links between transportation electrification and on-site energy infrastructure. Meanwhile, Phase 2 of NJ Cool combines building heating and cooling upgrades with renewable generation or storage, supporting more comprehensive retrofit projects.
Whether the updated programs achieve their intended goals will depend on project participation, implementation, energy market conditions, and the actual performance of completed projects. Still, the changes provide a clear example of how state-level clean energy programs are evolving. Rather than focusing solely on individual technologies, New Jersey’s latest incentives encourage businesses to consider how electrification, building upgrades, renewable energy, and storage can be incorporated into larger infrastructure investments. For companies planning energy projects in the state, understanding these changing requirements and evaluating the economics of combined projects will be an important part of turning available incentives into completed investments.
