Engaging Renewable Energy

Discover how utilities and other power providers are helping businesses meet clean energy goals.

New Jersey has become a leader in the forge toward clean energy, with the New Jersey Clean Energy Act of 2024 calling for 35% of the energy sold in the state to come from qualifying energy sources by 2025, and 50% by 2030. Some major utilities and solar companies in the state are trying to do their part by providing business customers with solutions to lower costs and help the environment at the same time. 

“Our energy efficiency programs are helping businesses of all sizes across various industries,” says Rachael Fredericks, director, energy services for PSE&G, New Jersey’s largest gas and electric utility. “By offering incentives, we assist companies in lowering energy consumption, reducing utility costs, and contributing to a more sustainable future. These efforts not only support businesses’ bottom lines, but also align with broader environmental goals – a win for both our customers and their communities.” 

Approximately 14,000 PSE&G business customers are participating in a suite of commercial and industrial (C&I) energy efficiency programs, including Direct Install, which can reduce energy usage and costs by up to 30% and helps businesses save approximately $12 million annually on their utility bills, the company says. For example, Carvel Ice Cream in Pennington upgraded two rooftop HVAC units through this program, resulting in $10,000 in installation savings and more than $1,600 in annual utility savings, while North Caldwell-based Jola Coffee benefitted from lighting and HVAC upgrades, with PSE&G covering 80% of their project costs and the company reducing energy consumption while boosting operational efficiency and customer comfort.

PSE&G also offers more tailored options like Custom and Prescriptive Solutions, Energy Management Solutions, and Engineered Solutions, which provide comprehensive energy upgrades for larger facilities as well as municipalities, universities, schools, and hospitals. For example, Kean University used the Engineered Solutions Program for customized upgrades to lighting and heating systems in multiple buildings. The project is forecasted to achieve approximately $400,000 in reduced annual costs, with PSE&G covering roughly 48% of the project costs, while the university will contribute approximately 52% to be repaid interest-free on its utility bill after construction is complete.

NJR Focuses on Efficiency and Renewable Sources

Another major player in New Jersey’s utility market is New Jersey Resources (NJR), whose principal subsidiary, New Jersey Natural Gas (NJNG), services 582,000 customers – about 32,000 of which are commercial and industrial businesses. While NJNG has long promoted energy efficiency, the company significantly expanded its efforts with the SAVEGREEN Project, which was launched in 2009. SAVEGREEN provides incentives  and rebates to help customers save energy and money, and NJNG invested approximately $150 million between fiscal 2021 and fiscal 2023 alone to make energy efficiency more accessible.

For example, since 2021, SAVEGREEN has helped five Hackensack Meridian Health hospitals in Monmouth and Ocean counties become more energy efficient through electrical, mechanical, lighting and HVAC upgrades – with NJNG providing $29 million in incentives and 0% financing while saving HMH about $2.2 million annually. “We’re helping the state meet its climate goals while helping customers reduce their consumption, saving them money and reducing their emissions profile,” NJNG Chief Operating Officer Patrick Migliaccio says. “In the context of an energy transition, it really is a win-win-win opportunity.”

In terms of renewable energy, NJNG is the first natural gas utility in New Jersey to blend hydrogen into its natural gas fuel stream, lowering greenhouse gas emissions. Additionally, the company is exploring potential renewable natural gas projects at landfills and wastewater treatment plants, where methane can be reclaimed and repurposed for customer use. NJNG is also the first utility in the state to operate CarbinX carbon-capture technology at its Wall headquarters. The units, which connect to the HVAC system and capture carbon emissions that otherwise would be emitted as flue exhaust, help improve overall efficiency by converting waste heat to heated water, decreasing water heater usage, emissions, and energy costs.

“As we think about this energy evolution, we’re moving forward with an eye on preserving the safety and affordability of these solutions,” Migliaccio says. “That’s the balancing act we need to achieve as we work to meet the state’s climate goals.”

SJI: A Leader in RNG Production

South Jersey Industries (SJI), which services about 50,000 business customers through South Jersey Gas and Elizabethtown Gas, has invested more than $219 million in energy efficiency programs since 2009. The utility is also moving toward cleaner energy for business customers by replacing aging transmission pipes to reduce “fugitive” emissions and upgrading leak detection technologies to make New Jersey’s infrastructure more resilient. 

SJI also continues to invest in renewable energy technologies such as fuel cells, hydrogen, and renewable natural gas (RNG), a low-carbon, low-cost transportation fuel. On the latter, SJI Renewable Energy Ventures is constructing what could be one of the nation’s largest food waste-to-renewable natural gas projects in Linden, which is intended to convert organic waste into pipeline-quality RNG that can be used for a variety of applications. 

Additionally, SJI and Opal Fuels have partnered to construct landfill gas RNG projects at the Atlantic County Utilities Authority’s solid waste landfill in Egg Harbor Township, and at Burlington County’s solid waste landfill in Florence Township. “For many businesses, their focus concerning energy is on reliability,” says Kyle Nolan, vice president and chief operating officer, SJI Renewable Energy Ventures. “They need to ensure that their businesses have the energy they need to operate. RNG is a pipeline-quality gas that is interchangeable with conventional natural gas. We anticipate that businesses and residents will welcome these fuels.”

The Solar Solution is Key

Solar power is also an important part of New Jersey’s energy equation, accounting for about 87% of the state’s renewable energy and nearly 7% of total electricity generation. “I would say solar is critically important, and an essential part of New Jersey’s energy goals. Wind power is also an important component,” says Ed Seliga, chief information officer and co-owner of Flemington-based Advanced Solar Products. “If you build enough offshore wind and put enough solar into new buildings – as well as retrofitting as many existing buildings as possible – it’s quite feasible to replace fossil fuel completely.”

Much of today’s solar business market is third-party investors paying solar companies so they can supply schools and other entities with solar power on an ongoing basis. This is cost-effective for those public institutions whose tax-exempt status means they can’t enjoy the tax benefits related to solar use. In addition, agro-demonstration sites – like the three Advanced Solar projects recently completed with Rutgers University – are allowing farmers to create a dual use arrangement on their farms to maintain agricultural production while producing clean energy and selling the power. This gives farmers an additional source of income, while helping preserve New Jersey’s farms and keep the state green.

While the Solar Act of 2021 directed the New Jersey Board of Public Utilities (NJBPU) to double the growth of the state’s solar program by 2026, challenges continue to inhibit the sector, according to Seliga. Permits for community solar projects that used to be obtained locally in about six weeks now go through the state, with delays of a year or more in connecting new solar projects to an aging power grid.

“We’ve already bumped into the capacity of the grid to connect more solar, and it’s difficult to see New Jersey achieving the ambitious goals we have until some of these significant issues are resolved,” Seliga adds. “In the next 10 years, we need to change the whole energy picture dramatically if we’re going to address climate change.” 

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