Building to the ENERGY STAR specification saves owners money from the beginning by reducing operating expenses. Through this requirement alone, this threshold in the QAP has resulted in over 100 development projects and a total of 2,314 units that will be ENERGY STAR certified. This is transforming the affordable housing market, and has helped bring the ENERGY STAR program to the attention of developers across the state. As a result of these efforts, the program was awarded the 2006 U.S. EPA ENERGY STAR award for Excellence in Affordable Housing. NJHMFA continues to support advances in the ENERGY STAR program, offering the Microload option in the QAP Green Point.
Some NJHMFA programs have an ENERGY STAR certification requirement. Not all projects are able to go through the ENERGY STAR Homes program, please review the 2010 Guide to NJHMFA ENERGY STAR Requirements for alternatives - found in the Related Documents section on the right - and which includes a Multifamily Logic Tree for quick reference. While the document mentioned above provides guidance on how to meet NJHMFA financing requirements; it specifically references the energy efficiency programs offered through the NJ Clean Energy Program. The following sections cover these offerings.
A regular home, built to code, would have a Home Energy Rating System (HERS) score of 100. ENERGY STAR Homes have a minimum HERS score of 85; that is, they are designed to be 15% more energy efficient than a home built to local code. The Clean Energy Program has hired MaGrann Associates to administer the NJ ENERGY STAR Homes program and to provide free consultation, inspection and rating services for the ENERGY STAR Multifamily High-Rise Pilot and NJ Climate Choice Homes Pilot. A home built to ENERGY STAR Homes standard (Tier 1 = HERS 85) would qualify for a per/unit/home incentive as well as a free comprehensive lighting package. A home built to be more energy efficient (Tier 2 = HERS 65) would qualify for higher incentive amount and would also be eligible for federal energy efficiency incentives. There is a new Pilot program - NJ Climate Choice Homes - which provides competitive (and much higher, Tier 3) incentives for homes that achieve a HERS score of 50 or less.
NEW! The 2010 program will maintain the new tiered structure, transition to an open market structure for the provision of home energy ratings, and prepare the market for adoption of the 2011 ENERGY STAR standards. (1) All projects with 95% complete plans and specifications that are submitted after mid-March will fall into the new program; (2) in the new program, developers will need to pay for and contract with an independent HERS rater - not MaGrann; (3) unless you are participating in the Multifamily High-Rise Pilot or NJ Climate Choice Homes - in which case MaGrann will continue to provide NJ ENERGY STAR services free of charge.
If you are just getting your feet wet, constructing 'green' homes, you can start by building a NJ ENERGY STAR Home.
For existing single-family homes and low-rise multifamily buildings, you can participate in the NJ Home Performance with ENERGY STAR Homes program. This program is available to all residents and to homes ranging from single-family (1-4 units) to low-rise garden apartments (1-3 stories, no elevator, individual meters). Home Performance with ENERGY STAR offers a whole-house energy audit and at the discounted rate of $125. If no health and safety issues are found in the home and air sealing opportunities are identified during the home audit, NJCEP will offer up to $1,000 worth of free air sealing work to be completed by a contractor selected by the owner from a pre-qualified list. If owners want to install additional air sealing measures as well as insulation, high efficiency heating and/or other eligible improvements that result in 25% energy savings, NJCEP will pay for 1/2; of the costs (up to a total $10,000/unit rebate). Lesser incentives or other financing are available to those wishing to install energy efficiency measures that do not result in 25% energy savings. For multifamily buildings, different incentive rates are in effect. The $125 audit fee may also be reimbursed if the owner chooses to carry out additional work beyond the free air sealing. This program is available to all NJ owners, regardless of income.
In 2009, the NJ Clean Energy Program launched the NJ Smart Start: Pay for Performance program. This program is geared towards existing multifamily, commercial and industrial buildings. Under this program, the owner hires a qualified Pay for Performance Partner, who would conduct a whole-building energy audit and recommend a scope of work that would achieve 25% energy savings. When the audit is complete, the scope of work finalized and financing put in plan; then the partner will submit, on behalf of the owner, for the 1st incentive (based on building sq. ft.). When work is completed; the partner will submit for the 2nd incentive (based on projected energy savings). After monitoring the building for one (1) year and making adjustments as needed to meet the goal; then the partner would submit for the 3rd incentive, which is based on actual energy savings (even if savings are more than projected). Increased incentive amounts are available for affordable multifamily buildings.
The commercial and industrial section of the Clean Energy Program is labeled 'Smart Start'. In addition to the Pay for Performance program, there are many incentives for specific lighting upgrade packages, many different types of equipment and for an energy professional's design assistance. There is flexibility in the program to address your specific energy upgrade project - please call 1-866-NJ-SMART for more information.
