Latest Award will Provide Solar Power and Energy Savings to Low-Income Households While Advancing Environmental Justice Across the State

TRENTON – Governor Phil Murphy and New Jersey Board of Public Utilities (NJBPU) President Christine Guhl-Sadovy today announced that New Jersey has been selected to receive $156.1 million in federal funding to make affordable clean energy more accessible across the Garden State. 

Awarded by the United States Environmental Protection Agency (EPA) through its Greenhouse Gas Reduction Fund: Solar for All program, this investment will enable the NJBPU to support solar access for multifamily affordable housing; establish pathways to residential solar ownership for low-income disadvantaged community (LIDAC) households; expand community solar initiatives; and support solar workforce development and enable critical grid upgrades to support more solar generation in New Jersey.

New Jersey’s Solar for All award is anticipated to enable the State to deploy more than 175 MW of solar energy to benefit 22,000 overburdened households within the first five years of funding. Additionally, the award has the potential to result in 240,000 short tons of CO2 emission reductions, approximately $250 million in total energy bill savings over 30 years for residents in newly connected households and enable 90 MWh of associated storage through the NJBPU’s multifamily solar program.

“New Jersey is once again utilizing innovative strategies and equitable clean energy solutions to leverage the Biden Administration’s landmark investments,” said Governor Murphy. “In addition to mitigating greenhouse gas emissions and strengthening New Jersey’s grid infrastructure, the projects supported by this unprecedented funding will produce significant cost-savings for hard-working New Jersey families, including tens of thousands of overburdened households across the state. I want to thank President Biden and his administration and our congressional delegation for delivering on transformative and necessary climate funding in the Inflation Reduction Act.”

“The NJBPU is committed to ensuring that all New Jersey residents – regardless of their zip code or income – can reap the full environmental and financial benefits of our transition to a 100% clean energy economy,” said NJBPU President Guhl-Sadovy. “Thanks to the Biden Administration and its landmark Inflation Reduction Act, we will continue New Jersey’s path toward an equitable clean energy transition.”

EPA released the $7 billion Solar for All Notice of Funding Opportunity on June 28, 2023, to expand the number of low-income and disadvantaged communities primed for residential solar investment—enabling millions of low-income households to access affordable, resilient, and clean solar energy.

The NJBPU will equitably invest federal funding in alignment with current programs and statutory guidelines to enable the following initiatives:

Community solar and enabling upgrades: Anticipated to serve approximately 15,500 households

New Jersey plans to expand its community solar initiative, including by raising the cap on the total amount of allowed community solar installations through energy year 2027. This program will be structured through direct incentives to developers, provided certain conditions are met. The NJBPU will also provide additional grants to developers to incentivize community solar projects that would otherwise be infeasible due to the need for costly grid upgrades. Additionally, New Jersey’s Solar for All proposal requires a minimum of 20% savings and 80% LIDAC subscribers, compared to the State’s permanent community solar program administered by the NJBPU, which requires 15% savings and 51% LIDAC subscribers. NJBPU will launch a pilot program to allow municipalities, community-based organizations and other resident-representing non-profits to partner with developers to structure equity-based subscription models.

Multifamily solar, including associated storage: Anticipated to serve approximately 5,500 households

New Jersey will extend access to solar energy for low-income residents, particularly in affordable housing. New Jersey proposes to fund a program offering a per-kilowatt incentive, with a capped carve-out for on-site energy storage solutions.

Residential solar: Anticipated to serve approximately 1,250 households
In New Jersey, there are 30% fewer residential installations in disadvantaged communities compared to other areas. New Jersey will launch a pilot program encouraging pathways to ownership of residential solar for overburdened households.

Technical assistance & workforce development
New Jersey will invest funds to provide grants for workforce training programs and fund customer outreach or interconnection support for electric utilities. Additional funds will be leveraged to fund ongoing efforts to modernize the grid and increase efficiency of interconnection approval.

“I am thrilled that New Jersey has received $156 million to tackle the major barriers that have prevented the adoption of solar energy by low-income and disadvantaged households,” said U.S. Senator Cory Booker. “This historic investment by EPA’s $27 billion Greenhouse Gas Reduction Fund was made possible by Democrats and President Biden through the Inflation Reduction Act, which is actively lowering energy costs for families and creating a cleaner environment for all.”

“I am proud to have helped pass the Inflation Reduction Act into law to help lower everyday costs burdening New Jersey families, while also making historic strides in our fight against climate change. The Solar for All grant program turns this law’s promises into action by helping our state make clean energy and direct savings accessible to more households, especially in low-income communities that disproportionately bear the weight of climate change. I look forward to seeing this program support local families, boost statewide clean-energy projects and efficiency, and help New Jersey do its part to protect our environment for generations to come,” said Congressman Andy Kim (NJ-03).

“As a former electrician, I know how important our continued investment in solar power is to lower energy costs for working families, create jobs, and reduce our carbon footprint,” said Rep. Donald Norcross (NJ-01). “The Inflation Reduction Act continues to deliver for New Jersey, and the Solar For All program will accelerate the benefits of clean energy throughout South Jersey. From championing investments in solar power as a state senator to voting for the Inflation Reduction Act in Congress, I will continue to support clean energy and its economic opportunities.” 

“Today’s announcement is a huge step forward in the transition to a clean economy. These investments will help ensure New Jersey is ready to do our part to tackle the challenges of the climate crisis head on. As Chairman of the Energy and Commerce Committee, last Congress I fought to include significant funding for investments in renewable energy so that we can empower Americans with new, good-paying jobs and lower energy costs. The Solar for All program is a shining example of those efforts,” said Rep. Frank Pallone (NJ-06). “I’m proud that our state is leading the way forward toward a clean, low-carbon future and proving that we don’t have to choose between growing our economy and fighting climate change.”

"Today's announcement from the Biden administration underscores the transformative power of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund as we move toward a clean energy future,” said Congressman Bill Pascrell, Jr. (D-NJ-09). “My Democratic colleagues and I fought hard to pass this legislation because our children and our grandchildren deserve to inherit a clean and sustainable environment. With this announcement today, I am thrilled to see our shared vision of a clean energy future taking shape. This initiative is a critical step forward in making renewable energy accessible to all Americans, reducing greenhouse gas emissions, and fostering economic growth in our communities. I look forward to continuing this vital work alongside Governor Murphy and President Biden.”

“I was proud to help New Jersey secure this $250 million to increase the use of affordable and clean solar energy when I helped pass the Inflation Reduction Act,” said Rep. Donald M. Payne, Jr (NJ-10). “Clean energy is good for consumers and good for the economy because it saves money on energy costs and creates good-paying jobs. This funding will help increase solar energy use in low-income and disadvantaged communities and upgrade the state’s electrical grid to handle more solar energy usage. I want to congratulate New Jersey Governor Phil Murphy and his team for their work to secure this award. We must make sure all New Jersey residents can benefit from clean energy.” 

- Congressman Payne was a relentless advocate for his constituents up until his untimely passing, as evidenced by this statement, which was submitted just prior to his hospitalization.

“I fought hard to pass the Inflation Reduction Act because federal action was greatly needed to address the climate crisis and support states and residents through the transition to clean energy. With the Solar For All program, we are helping make clean energy more affordable and lowering families’ monthly utility bills. I applaud the Murphy administration for advocating on behalf of our state within this competitive grant program and I look forward to the strides New Jersey will make accelerating solar usage and lowering our carbon footprint with this funding,” said Congresswoman Mikie Sherrill (NJ-11). 

“My Democratic colleagues in Congress and I fought hard to make sure the Inflation Reduction Act would not only help businesses transition to renewable energy, but bring the future of clean energy to communities that have historically suffered from underinvestment,” said Congresswoman Bonnie Watson Coleman (NJ-12). “This $250 million investment from the federal government does just that. I was proud to vote to pass the Inflation Reduction Act, and I’m proud of the real, tangible, positive impact this money will have on New Jerseyans — saving families money and bringing us closer to our ambitious carbon emissions goals.”

“I’m proud to have helped pass the Inflation Reduction Act and claw all of its benefits back to hardworking Jersey families,” said Rep. Josh Gottheimer (NJ-05). “This legislation is injecting some of the most important climate investments in our nation’s history — in renewable energy, electric vehicles, and more. These projects, like Solar for All, are a win for our state, nation, and environment — all while making life more affordable and without raising taxes on our communities and small businesses.”

“New Jersey is at the forefront of climate action, and the Solar for All award will help the Garden State advance innovation and equitable solar programming while bringing the benefits of clean energy to tens of thousands of residents,” said Senator Bob Smith, Chair of the Senate Environment and Energy Committee.

“New Jersey’s Solar for All award is great news for all of New Jersey,” said Senator Troy Singleton, Chair of the Senate Community and Urban Affairs Committee. “I proudly supported the application because this funding will not only help New Jersey achieve our climate goals but will do so by spurring innovation, expanding access for rural and overburdened communities, and supporting union jobs up and down the state. Today’s announcement is a huge win for New Jersey residents.”

"NJ is a national leader, taking bold action to equitably address the climate crisis,” said Kelvin Boddy, director of Healthy Homes and Communities for the Housing and Community Development Network of NJ. “We look forward to seeing these efforts elevated through the Solar for All award, which we were proud to support. With our older housing and infrastructure, NJ's overburdened communities are particularly vulnerable to the effects of climate change. This critical investment will allow us to build more resilient and healthy homes and communities for all New Jerseyans. We look for forward to building a greener future for all residents of the Garden State.”

“New Jersey has a dark history of racial segregation in housing, and that legacy has deprived many people of color from safe, energy-efficient housing. The Solar for All program will help residents who live with energy insecurity see financial savings in our clean energy future,” said Ed Potosnak, Executive Director, New Jersey LCV. “Community solar has the potential to meet 30-40% of energy capacity needs in New Jersey by 2050. This clean, renewable energy doesn't only help our wallets – it doesn’t pollute the air like dirty fossil fuels and will help mitigate climate change and create healthier communities.”

“The New Jersey Sierra Club is excited to see federal funding from the EPA coming right here to New Jersey’s communities to make clean, solar energy more accessible for all regardless of income,” said Anjuli Ramos-Busot, Director of the Sierra Club New Jersey Chapter. “Access to clean energy and clear air should never be a privilege, and this investment will take us one step closer toward energy justice in New Jersey.”

"As Newark environmental justice leaders, we extend heartfelt congratulations to New Jersey on receiving this prestigious award from the U.S. Environmental Protection Agency,” said Maria Lopez-Nunez, Deputy Director, Ironbound Community Corporation. “This momentous achievement marks a significant milestone in our collective efforts to advance environmental justice, combat climate change, and ensure equitable access to clean energy for all. Overburdened communities like Newark have long served as the backbone of energy infrastructure, bearing the burden of three existing fossil fuel power plants, and facing the looming threat of a fourth, while grappling with both the current and potential health impacts. The Solar for All program is vital for communities like ours. We commend the Garden State on seizing this opportunity to empower low-income households, create resilient infrastructure, and forge a path towards a healthier, more prosperous future for generations to come."