A bill sponsored by Assemblyman Raj Mukherji (D-33) to create an Economic Development Authority-run program to finance clean energy projects statewide has been signed into law to Gov. Phil Murphy (D).
“This program will be a major step forward in accomplishing important clean energy goals for our state. It’s highly likely that more property owners will be willing to make environmentally beneficial improvements to their property if they are able to access the financing to do so – which is exactly what this program offers,” Mukherji said in a statement.
“The C-PACE program makes it easier for owners to make these changes by eliminating upfront costs and providing a competitive long-term financing option. By offering this opportunity to property owners throughout the state, we can help residents take advantage of cost-saving measures that would also benefit the environment and resiliency of New Jersey. The program is a win-win for everyone involved.”
Under the law (formerly bill A-2374), the EDA will create a commercial property assessed clean energy (C-PACE) program.
The program will provide public or private financing to property owners to help them construct, install, acquire and/or modify renewable energy, water or storm resiliency projects.
Projects can be related to energy storage, water conservation, electric vehicle charging stations, and flood or hurricane-resistant construction – among other possibilities.
Eligible participants will be able to use C-PACE financing to cover project costs, including equipment, material and labor expenses.
The property owner will then repay the financing through a special assessment added on to their property tax bill that will have low interest rates and a repayment period of up to 30 years.
Joining Mukherji in sponsoring the legislation were Assemblywoman Nancy Pinkin (D-18), as well as state Senators Bob Smith (D-17) and Christopher “Kip” Bateman (D-16).