With the building sector responsible for 62% of the state’s total end-use energy consumption, New Jersey is introducing some of the most attractive funding and incentive opportunities in the region for building decarbonization, with a significant investment in geothermal.
Between federal Investment Tax Credits (ITCs) still in place under the Inflation Reduction Act (IRA) and newly strengthened state-level incentives, this is one of the most financially attractive moments to pursue geothermal heating and cooling.
Brightcore actively monitors the New Jersey Board of Public Utilities and the New Jersey Economic Development Authority pipelines and has experience securing competitive awards and maximizing stackability across grants, utility incentives, the federal ITC, and monetizing Renewable Energy Credits (RECs). All programs are subject to eligibility and availability. It is important to note that many of these incentives come with deadlines, so it’s important to start scoping as soon as possible.
For a more detailed breakdown of any of the incentives below, fill out an inquiry form to be sent a PDF.
Below is a simple breakdown of the most impactful programs in New Jersey available today.
Applicable Grants & Incentives in New Jersey
NJEDA New Jersey Retrofit Program
The New Jersey Economic Development Authority’s (NJEDA) Retrofit Program is a competitive grant designed to accelerate decarbonization and clean energy retrofits for large commercial and institutional buildings and campuses. Applications are expected to open in January 2026, with grant size up to $12.5M per project. Coverage includes hard and soft costs tied to eligible electrification and energy efficiency retrofit projects, including geothermal heating and cooling and Thermal Energy Networks (TENs). Early applications are generally best positioned for competitive awards. Applications opened January 15, 2026, with grant size up to $12.5M per project.
PJM Geothermal REC Opportunity
Through Brightcore’s relationships with REC aggregators, New Jersey projects can monetize their environmental attributes in the REC market. Eligible PJM-region geothermal systems can receive an upfront, one-time REC payment valued at $700/ton of installed geothermal capacity. Brightcore helps facilitate PJM GATS system registration, manage REC generation and tracking, and upfront REC payments.
Why Start your New Jersey Geothermal Project Now?
New Jersey’s incentive environment is strong—but competitive. Many programs come with limited funding or upcoming deadlines. Early scoping allows organizations to:
- Strengthen competitiveness in ranked programs
- Maximize stackability across grants, RECs, ITCs, and utility incentives
- Reduce total project cost and improve project ROI
- Explore Your Geothermal Options
Interested in exploring what your facility qualifies for? Submit an inquiry here: https://share.hsforms.com/1WtfLkzYSSAeO9xD54nIJdgdha29