The docket for the New Jersey Clean Energy Program Fiscal Year 2026 identifies several key areas of growth and outlines important considerations for each:
1. Electric Vehicle (EV) Adoption:
- The ChargeUp Program is recognized as critical for expanding sales of light-duty electric vehicles in New Jersey. Key considerations include:
- Ensuring the program’s continuity and sustainability to maximize EV sales.
- Structuring EV rebates effectively, including tiered incentives for low- and middle-income buyers (with a $4,000 maximum rebate and a $1,500 option for other buyers).
- Addressing the risk of "free loader" issues—i.e., ensuring rebates are not set too high (leading to unnecessary incentives) or too low (insufficient to drive adoption).
- Improving customer experience and dealer involvement to translate rebates into actual sales.
- Increasing transparency by sharing modeling data with stakeholders to inform program design and assumptions
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2. Low-Income Energy Efficiency and Housing Upgrades:
- Expansion of the Whole House Pilot Program is proposed, targeting health, safety, and efficiency improvements, especially for low-income households. Considerations include:
- Addressing structural barriers (e.g., mold, outdated wiring, roofing) that prevent access to energy efficiency services.
- Demonstrating a substantial return on investment (e.g., $283 in annual household savings, $4.59 in benefits per $1 invested).
- Leveraging alternative funding sources to meet demand (e.g., RGGI proceeds, infrastructure banks).
- Recognizing systemic benefits such as reducing overall utility assistance reliance and lowering capacity charges.
- Following successful models from other states due to significant unmet demand
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3. Comfort Partners Program for Low-Income Customers:
- The budget for this program is under scrutiny, with suggestions to increase it by up to 30% to serve more customers and align with national funding levels. Key considerations:
- Rising energy prices heighten the need for robust support.
- The program provides no-cost weatherization, HVAC, and health/safety upgrades, directly reducing energy burdens.
- Increasing participation and aligning eligibility with other assistance programs (like USF).
- Funding increases could be achieved by reallocating from other clean energy programs without raising costs for all ratepayers
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4. Distributed Energy Resources (DER) and Combined Heat & Power/Fuel Cells (CHP-FC):
- There is a debate over proposed funding reductions and program changes:
- Stakeholders argue for maintaining support for CHP-FC projects until renewable energy alternatives are viable and infrastructure is ready.
- Concerns include the risk of disrupting microgrid development, losing energy efficiency gains, and creating investment uncertainty.
- Calls for a phased transition, inflation-adjusted incentives, and maintaining technology-neutral approaches until market maturity is reached
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5. Energy Efficiency in Buildings:
- Programs incentivize measures exceeding code requirements, using streamlined modeling tools (like Sketchbox) to estimate projected site energy savings and ensure eligibility for incentives.
- Considerations involve ensuring that only qualified measures receive incentives and updating requirements as standards evolve
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In summary, areas of growth include EV adoption, low-income energy upgrades, expanded DER/CHP-FC support, and enhanced building energy efficiency. Key considerations focus on equity, program continuity, transparency, funding adequacy, market readiness, and leveraging broader benefits for New Jersey residents.