TRENTON – The New Jersey Board of Public Utilities (NJBPU) on Oct 30th, announced the approval of Triennium 2 (T2) energy efficiency programs proposed by the state’s seven electric and gas utilities. In the process of supporting building decarbonization and energy conservation, these programs will prioritize low-income customers who shoulder disproportionately high energy burdens.

“On Oct 30th’s approval of the Triennium 2 energy efficiency programs marks a major milestone in our progress toward achieving the goals set out in Governor Murphy’s Energy Master Plan, which is paving the way for a healthier, more sustainable Garden State,” said NJBPU President Christine Guhl-Sadovy. “By bolstering New Jersey’s ongoing building decarbonization efforts and the NJBPU’s robust array of energy efficiency initiatives, the T2 programs will further boost long-term cost and energy savings for New Jersey customers.”

“These ambitious programs are the largest single step by New Jersey to achieve Governor Murphy’s ambitious goal in EO 316 to electrify 400,000 residential and 20,000 commercial units by 2030,” said Eric Miller, Executive Director of the Office of Climate Action and the Green Economy. “The steps taken on Oct 30th, by the BPU will grow our clean energy workforce, lower bills for participating customers, and reduce greenhouse gas emissions.”

Triennium 2 is the second cycle of the State’s multi-year utility-run energy efficiency programs. Established by the Clean Energy Act of 2018, natural gas utilities must achieve energy savings of 0.75% and electric utilities must achieve energy savings of 2% of the average annual usage in the prior three years within five years of implementation of their energy efficiency programs.

To date, it is estimated that Triennium 1 (T1) programs have disbursed $1.25 billion in financial incentives to ratepayers statewide and reduced annual electricity usage by 3 million megawatt hours, annual natural gas usage by 8.5 million MMBtu, and reduced customers’ utility bills by $600 million. T1 resulted in 1.4 million metric tons of annual greenhouse gas emission reductions, which is equivalent to approximately 300,000 cars removed from the road per year.   

The T1 portfolio was expanded in T2 to address two important challenges for NJ: building decarbonization and demand response. The building decarbonization start-up programs incentivize adoption of key measures such as electric heat pumps and water heaters to reduce building emissions from fossil fuels. Demand response programs encourage homeowners and businesses to reduce consumption of energy at peak times through smart thermostats, controls, and price signals. Collectively, over $3.75 billion has been budgeted for the programs and will be implemented over a 30-month period from January 1, 2025 through June 30, 2027. This investment will help the State achieve Governor Murphy’s goals outlined in Executive Order 316 and are anticipated to reduce annual electricity usage by 2.3 million megawatt hours, annual natural gas usage by 8.9 million MMBtu, and annual greenhouse gas emissions by 1.5 million metric tons.

To promote energy equity, the Income-Qualified Program will have more capacity compared to T1 to provide comprehensive home energy assessments and offer health and safety, weatherization, HVAC, and other energy efficiency upgrades at no cost to eligible customers.  More broadly, programs across the utilities’ portfolios will continue to include enhanced incentives and more favorable financing terms for income-eligible customers. 

One notable addition in T2 is the standardization of the Direct Install model, including a Public Sector Direct Install program pathway, which will help support partners in labor in growing a local workforce that represents the diverse fabric of our state. Approximately 37,000 people work in the clean buildings sector, and T2 will strengthen the pathway for diverse workers and businesses to continue to build the clean energy economy.

For more information about State and utility-led efficiency programs, please visit: https://www.njcleanenergy.com/EEP

About New Jersey’s Clean Energy Program (NJCEP)
NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.

About the New Jersey Board of Public Utilities (NJBPU)
NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.