New Jersey Natural Gas Receives Approval for Its Largest Ever Energy-efficiency Program

Rhea-AI Summary

New Jersey Natural Gas (NJNG) received BPU approval for its largest energy-efficiency program, SAVEGREEN®, effective January 2025 through June 2027. The company is authorized to invest $385.6 million over 30 months, including $205 million for direct program funding and $160.5 million for 0% financing opportunities. The program aims to help customers reduce energy usage and lower bills through rebates and financing for equipment replacement and energy-efficiency measures. If fully subscribed, SAVEGREEN will save over 109.8 million therms of natural gas, preventing 580,592 metric tons of CO2 emissions. The program includes innovative technologies like hybrid heat systems and gas heat pumps for commercial customers.

Positive

• Secured approval for $385.6 million investment in energy efficiency program
• Program expected to save 109.8 million therms of natural gas if fully subscribed
• Includes $33 million allocation for low-to-moderate income customer programs
• Offers 0% financing opportunities worth $160.5 million for customers
• Previous SAVEGREEN program generated $665 million in economic activity

Negative

• None.

Insights

Energy Policy Analyst

The BPU approval of NJNG's $385.6 million SAVEGREEN program marks a significant expansion in utility-scale energy efficiency initiatives. The program's structure, with $205 million in direct funding and $160.5 million for financing, demonstrates a comprehensive approach to emissions reduction. The projected savings of 109.8 million therms and 580,592 metric tons of CO2 represent substantial environmental impact.

The inclusion of innovative technologies like hybrid heat pumps and district geothermal systems positions NJNG at the forefront of utility decarbonization efforts. The $33 million allocation for LMI customers reflects strong social responsibility while creating new market opportunities. The program's scale and 30-month timeline suggest meaningful revenue potential through rate recovery mechanisms.

Market Research Analyst

This program expansion represents a strategic growth driver for NJR, building on SAVEGREEN's track record of generating $665 million in economic activity since 2009. The program's comprehensive scope, covering both residential and commercial sectors, creates multiple revenue streams while strengthening customer relationships across NJR's 582,000-customer base.

The focus on workforce development through a new training facility indicates sustainable long-term growth potential in the energy efficiency sector. The program's alignment with state clean energy goals and inclusion of emerging technologies provides regulatory certainty and positions NJR favorably in the evolving utility landscape.

Energy-efficiency solutions include innovative technologies and enhanced opportunities for residential and commercial customers to achieve emissions reduction.

WALL, N.J.--(BUSINESS WIRE)-- New Jersey Natural Gas (NJNG), the principal subsidiary of New Jersey Resources (NYSE: NJR), today received approval from the New Jersey Board of Public Utilities (BPU) for the next generation of its SAVEGREEN® program. The expanded solutions underscore NJNG’s commitment to advancing energy-efficiency opportunities and pursuing new, cleaner energy technologies to help customers reduce their energy usage and lower their energy bills. This program cycle is scheduled to go into effect January 1, 2025, and continue through June 30, 2027, positioning NJNG to meet its annual energy-saving goals consistent with the New Jersey Clean Energy Act.

“These energy-efficiency programs are a win-win proposition, helping customers save money by using less energy and lower carbon emissions in support of New Jersey’s long-term goals,” said Steve Westhoven, president and CEO of New Jersey Natural Gas. “Today’s approval will allow NJNG to expand these commonsense solutions for our customers and pursue cutting-edge technologies including gas heat pumps for commercial customers, hybrid heating and geothermal systems. The growth of our SAVEGREEN program is an important step forward in our decarbonization journey as we empower customers with smart energy practices that help lower their energy bills. We thank the Board of Public Utilities and Rate Counsel for their continued support of energy-efficiency programs as we work toward a cleaner energy future.”

The BPU’s decision paves the way for the company’s largest energy-efficiency program to date. It continues NJNG’s residential and commercial core offerings, including rebates and 0%* financing to help make equipment replacement and whole building energy-efficiency measures easier and more affordable.

NJNG is authorized to invest $385.6 million over the 30-month period to strengthen SAVEGREEN and ensure access to energy-efficiency measures for its residential and commercial customers – including targeted efforts to serve low- to moderate-income (LMI), multifamily and small business customers. This investment comprises $205 million to directly fund SAVEGREEN programs and $160.5 million to provide 0%* financing opportunities for customers. It also includes $20.1 million to cover operation and maintenance expenses required for program delivery.

Of the direct program funding, over $33 million is allocated for programs designed to help ensure equitable access to energy affordability specifically for LMI customers. Qualified customers can receive comprehensive home energy-efficiency improvements at no cost, with opportunities to upgrade heating, cooling and water heating equipment, insulation, air sealing and more. The multifamily program will allow buildings serving LMI customers to implement energy-efficiency projects that address common areas and equipment, as well as upgrades to individual tenant units.

If fully subscribed, SAVEGREEN will enable participating customers to save more than 109.8 million therms of natural gas over the length of the program. This equates to preventing the release of 580,592 metric tons of carbon dioxide – the same as removing 138,268 cars from New Jersey roadways each year.

Building on Success
The next generation of SAVEGREEN introduces enhanced features designed to eliminate barriers to participation and make energy efficiency easier and more affordable. Modifications to rebates and incentives — including increased financing* for residential programs — address the unique budgets of customers. Incentivized measures include:

• Replacement of heating and cooling systems and water heating equipment.
• Smart thermostats and weatherization measures such as insulation and air sealing.
• A variety of commercial and Industrial energy-saving equipment, investment-grade audits and engineering services to help identify and implement comprehensive solutions.

Pursuing Decarbonization with New, Innovative Technology
The next wave of SAVEGREEN offerings provides rebates and 0%* financing for customers to pursue hybrid heat and gas heat pumps (limited to commercial customers), and for NJNG to explore the benefits of district geothermal heating. These technologies are emerging as powerful tools for meeting energy-efficiency and emission-reduction goals.

• Hybrid heat involves the installation of an electric air-source heat pump with a high-efficiency natural gas furnace, which work in tandem through integrated controls to maximize energy-efficiency while meeting the heating, cooling and comfort needs in a building.
• Gas heat pumps are appliances that provide a building’s space and water heating needs with approximately 140% efficiency as compared with high-efficiency furnaces that are currently capped at around 99% efficiency.

These innovative approaches can provide valuable insights and help support consideration for broader decarbonization and energy-efficiency solutions in the future. Moreover, approval of the new program allows NJNG to study and explore the feasibility of deploying a district geothermal system within its service territory. This approach could potentially serve residential, commercial and multifamily customers and particularly benefit low- to moderate-income customers.

Economic Development
As the demand for energy-efficiency projects continues to increase, NJNG recognizes the need to broaden technical training for both new entrants to the industry and existing skilled trade professionals. To support the development and strengthening of this workforce, the company will enhance its Workforce Development Program with the opening of the new SAVEGREEN training facility located in Monmouth County.

Since its inception in 2009, SAVEGREEN has helped thousands of participating contractors/trade allies generate nearly $665 million in economic activity. Over the lifetime of the program, more than 100,726 customers have taken advantage of rebates and incentives for energy-efficiency improvements.

*Terms and conditions apply. For detailed terms and conditions, including financing terms, eligibility requirements and qualifying equipment, visit SAVEGREEN.com.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

• New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 582,000 customers in New Jersey’s Monmouth, Ocean and parts of Morris, Middlesex, Sussex and Burlington counties.
• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 474 megawatts, providing residential and commercial customers with low-carbon solutions.
• Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
• Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River Energy Center and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.
• Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as SAVEGREEN® and The Sunlight Advantage®.

For more information about NJR:

Visit www.njresources.com.

Follow us on X (formerly Twitter) @NJNaturalGas.

“Like” us on Facebook @NewJerseyNaturalGas.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030127507/en/

Media: Michael Kinney 732-684-3234

Investor: Adam Prior 732-938-1145

Source: NEW JERSEY NATURAL GAS

FAQ

What is the total investment approved for NJNG's SAVEGREEN program in 2025-2027?

The New Jersey Board of Public Utilities approved a total investment of $385.6 million for NJNG's SAVEGREEN program from January 2025 through June 2027.

How much energy savings will NJR's new SAVEGREEN program achieve?

If fully subscribed, the program will save more than 109.8 million therms of natural gas, equivalent to preventing 580,592 metric tons of carbon dioxide emissions.

What financing options does NJNG's new SAVEGREEN program offer?

The program includes $160.5 million for 0% financing opportunities and offers rebates for equipment replacement and energy-efficiency measures for both residential and commercial customers.

When does NJNG's new SAVEGREEN program start?

The new SAVEGREEN program cycle is scheduled to begin January 1, 2025, and continue through June 30, 2027.