ENERGY STAR Homes Program

July 28, 2015

Summary

Note: Beginning from Nov 1, 2014, the base standard for the Climate Change homes (Tier III) will be replaced by requirements for Department of Energy’s Zero Energy Ready Homes.

The New Jersey Board of Public Utilities, in conjunction with New Jersey utilities, offers the ENERGY STAR Homes Program. The program provides incentives to builders who construct homes that are more efficient than homes built to the International Energy Conservation Code (IECC). In order to achieve this classification, a home must 75 or less vs. IECC 2009 on the Home Energy Rating Scale (HERS). New homes and gut rehabs of existing homes throughout the state can qualify for the ENERGY STAR home designation and incentives; however, new homes must be located designated New Jersey Smart Growth areas in order to qualify. An exception to this rule exists in areas affected by Hurricane Sandy, for projects enrolled from October 29, 2012 - June 30, 2013.

The incentive structure offers the builder varying incentive amounts based on the type of residence (single-family, townhouse, and multi-family) and the level of energy efficiency that the home achieves compared to a reference home. Details of this structure, as applicable for the 2014 program year are described below.

NJ Energy Efficient Homes (Tier I): This category of homes does not meet ENERGY STAR standards but are 15% more efficient than traditionally build homes. For single family homes,  incentives range from $1,250 - $2,500 depending on HERS rating using IECC 2009. Multi-single units (e.g., townhomes) receive 75% of the single-family incentive level and multi-family units receive 50% of the single family incentive level.

ENERGY STAR New Homes Version 3.0 (Tier II): These homes meet the EPA ENERGY STAR Homes standard requirements and are 20-25% more efficient than traditionally build homes. For single family homes, incentives range from $2,250 - $3,500 depending on HERS rating using IECC 2009. Multi-single units (e.g., townhomes) receive 75% of the single-family incentive level and multi-family units receive 50% of the single family incentive level.

Incentives for FY2015 for both Single Family Unit for NJ Energy Efficient Homes (Tier I) and ENERGY STAR Home (Tier II) based on IECC 2009 are summarized in the table below

HERS	Tier I	Tier II
75	$1,250	$2,250
70	$1,500	$2,500
65	$1,750	$2,750
60	$2,000	$3,000
55	$2,250	$3,250
50	$2,500	$3,500

Climate Choice Homes (Tier III): These buildings include the highest standard of energy efficiency. The homes are built with advanced high efficiency building products, practices, lighting, appliances, and renewable energy. The homes are more than 50% efficient than traditional buildings before the addition of renewable energy. Incentives offered under this program is listed as follows

Building Type	FY2015 NJ Zero Energy Ready Home (Tier 3)
Single Family	$10,000 to achieve 50 points, plus $800 per index point below 50 points (maximum incentive is $26,000/unit)
Multiple Single Family (“Townhouse”)	$7,000 to achieve 50 points, plus $500 per index point below 50 points (maximum incentive is $17,000/unit)
Multiple-Family Building ("Multifamily")	$4,000 to achieve 50 points, plus $400 per index point below 50 points (maximum incentive is $12,000/unit)

 

Beginning from Nov 1, 2014, the base standard for the Climate Change homes (Tier III) will be replaced by requirements for Department of Energy’s Zero Energy Ready Homes.

Energy Star Multi-family High Rise: For multi-family buildings of 3 stories or more, $1,000 per qualifying unit

The HERS index scores described above are calculated before the inclusion of any on-site renewable energy generating systems. An ENERGY STAR rated home is required to have at least three ENERGY STAR labeled hard-wired lighting fixtures. Effective January 28, 2008 building owners of all multi-family new construction units must apply for a receive a Tax Clearance Certificate from the New Jersey Division of Taxation in order to be eligible for financial assistance under this program. The objective of this new requirement is to ensure that all recipients of taxpayer funded support are in full compliance with their state tax obligations.

For more information, visit the program website or call (856) 797-0011 and follow the voice prompts for the New Jersey ENERGY STAR Homes Program.