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Governor Murphy Announces New Incentive to Support Solar Energy Development, Information Hub to Aid Municipalities and Developers with Solar Projects

New Website Will Streamline Transformation of Unusable Land into Clean Energy Sites

Newly Enacted Legislation Will Bolster Historic Preservation in NJ & Support Redevelopment of Brownfields into Solar Facilities

Governor Phil Murphy today announced the launch of a new website that will serve as a one-stop shop to guide municipalities and solar developers as they plan, fund, and complete solar plus landfill capping projects. The Governor also signed legislation, A4619/S3479, enhancing the Historic Property Reinvestment Act and the Brownfields Redevelopment Incentive Program Act to support historic preservation and further incentivize the redevelopment of brownfields across New Jersey into new solar energy facilities.

“In New Jersey, we have set the ambitious goal of delivering a 100 percent green economy because we know how important it is to build a strong foundation for renewable energy, combating the imminent threat of climate change and propelling our state forward. My Administration has pursued innovative strategies to reduce our carbon footprint by shifting away from fossil fuels and uplifting renewable resources. These policies represent an investment into our residents and our communities by prioritizing public health, spurring economic development, and creating good-paying jobs,” said Governor Murphy. “With the launch of the Landfill to Solar website, we are putting all our resources in one place so municipalities and developers can leverage otherwise unusable land into renewable energy sites. We are also expanding tax credits under the Economic Development Authority’s Historic Property Reinvestment Act and Brownfields Redevelopment Program Act so that we can preserve New Jersey’s communities while promoting environmental cleanup and green energy production. Today’s bill signing will ensure future generations can celebrate the rich history of our state while living in a greener, healthier environment.”

The new Landfill to Solar website, created by the Governor’s Office of Climate Action and the Green Economy, brings together resources from New Jersey’s Board of Public Utilities (BPU), Economic Development Authority (EDA), and Department of Environmental Protection (DEP) to provide both municipal governments and solar developers with a step-by-step guide to initiating and completing solar projects. Advancing resources such as the landfill solar information hub is a primary component of the Murphy Administration’s whole-of-government approach to reducing emissions, developing clean energy, growing economic development, increasing affordability, and revitalizing communities.

The site highlights DEP’s Solar Siting Analysis Mapping Tool to help identify eligible landfill sites in municipalities across New Jersey and provides streamlined instructions on how to apply for incentive programs made available through the state. This includes EDA’s Brownfields Redevelopment Incentive Program Act as well as BPU’s Community Solar Energy Program (CSEP) and Competitive Solar Incentive (CSI) program. New Jersey’s solar programs provide incentives tailored to the needs of different projects, further enabling the continued growth of the solar industry at a lower cost to ratepayers. At their September 4 board meeting, BPU adopted rules for the permanent Community Solar Energy Program and proposed changes to allow for the co-location of projects on uncapped, municipally-owned landfills up to a total size of 10-megawatts.

“From our Competitive Solar Incentive program to our nation-leading Community Solar Energy Program, New Jersey’s thriving solar industry continues to serve as a national model,” said New Jersey Board of Public Utilities President Christine Guhl-Sadovy. “We look forward to continuing to provide municipalities and developers with the tools they need to bring projects to fruition while making affordable clean energy more accessible for all New Jersey residents.”

“Preserving historic sites and transforming dormant properties serves as a key component of Governor Murphy’s economic development strategy, which is helping attract investments that spur revitalization in New Jersey communities. The legislation signed into law today will allow the Historic Property Reinvestment and Brownfields Redevelopment Incentive Programs to continue supporting transformative projects that will create good-paying jobs, restore underutilized community assets, and unlock untapped economic potential across the state,” said Tim Sullivan, Chief Executive Officer of the New Jersey Economic Development Authority.

“Information is critical to our ongoing transition to a clean-energy economy,” said Environmental Protection Commissioner Shawn M. LaTourette. “The DEP’s Solar Siting Analysis 3.0 provides detailed land use information to guide solar energy developers to the most appropriate places for solar arrays, such as landfills and rooftops. This tool provides a great resource in the continued development of more renewable energy in New Jersey that will help the state meet its clean energy goals and do its part to mitigate the impacts of climate change.”

“New Jersey has long been a national leader when it comes to creating innovative programs to deploy solar and meet our climate goals, and this program is another example of our leadership,” said Eric Miller, Executive Director of the Office of Climate Action and the Green Economy. “With this new website and greater incentives, we can streamline the conversion of our landfill sites to clean solar facilities that lower the state’s greenhouse gas emissions while at the same time lowering the energy bills of the communities where they are located.”

Legislation signed by the Governor will enhance incentives available through EDA’s Brownfields Redevelopment Incentive Program Act by modifying provisions to cover remediation activities such as the work needed to cap landfill sites. Solar projects located on the site of a former landfill will be eligible to receive tax credits in the amount of 100 percent of the costs of remediating and capping the landfill, up to a maximum of $8 to $12 million depending on the location of the project.

The legislation also reforms EDA’s Historic Property Reinvestment Act by increasing the maximum size of tax credit awards available under the program and allowing for certain facade rehabilitation projects to be eligible for a tax credit award. Credits awarded for the rehabilitation of properties located in qualified incentive tracts or government-restricted municipalities are increased to 60 percent of the cost of rehabilitation, up to a maximum of $12 million. Credits awarded for the rehabilitation of other qualified properties – other than a transformative project – are increased to 50 percent of the cost of rehabilitation, up to a maximum of $8 million.

Sponsors of the bill, A4619/S3479, include Senate Majority Leader M. Teresa Ruiz, Senator Shirley Turner, Assemblywoman Eliana Pintor Marin, Assemblywoman Shanique Speight, and Assemblywoman Shavonda Sumter.

“The high cost of environmental remediation and historic preservation can greatly discourage development in underserved communities, where these investments can have the biggest impact,” said Senate Majority Leader M. Teresa Ruiz. “Increasing tax incentives and fixing administrative hurdles for builders to take on projects that require historic preservation and environmental cleanup will create jobs, stimulate local economies, and revitalize our communities while preserving the unique character of our neighborhoods.”

"By enhancing tax incentives in the Historic Property Reinvestment Act and the Brownfields Redevelopment Incentive Program Act, we will spur greater investment in historic properties and contaminated sites, especially in underserved areas," said Senator Shirley Turner. "This legislation promotes economic and ethical development that prioritizes the history of our communities and works to ensure they are healthy, safe places to live and work.”

“New Jersey’s history and environment are central to the identity of our communities,” said Assemblywoman Eliana Pintor Marin. “By modifying these provisions, we ensure that our Historic Property Reinvestment and Brownfields Redevelopment Incentive programs are more effective, equitable, and impactful. This legislation reflects our commitment to preserving our heritage while revitalizing areas that have been long neglected. It’s about building a stronger, cleaner future for everyone in our state.”

“New Jersey’s rich history is all around us, and through this program, we will be able to revitalize landmarks and redevelop brownfields, preserving our heritage,” said Assemblywoman Shanique Speight. “With these provisions, we will stimulate investments in our communities, transforming underutilized spaces into vibrant areas that better serve both residents and businesses."

"Programs like these encourage businesses and developers to revitalize our communities, ultimately enhancing the quality of life for residents," said Assemblywoman Shavonda Sumter. "By investing in historic properties and redeveloping brownfields across the state, we are breathing new life into neighborhoods and significantly improving the well-being of our communities."

Governor Murphy has set a goal of achieving 100 percent clean electricity by 2035. Redevelopment projects supporting the creation of new solar facilities directly support the Administration’s goal to accelerate the deployment of renewable energy. Under Governor Murphy’s leadership, New Jersey is on track to exceed installed solar capacity over 7,400 MW by 2026. These incentivized projects also drive job creation across the state.

According to the U.S. Department of Energy, New Jersey is a top five state for job growth in the energy efficiency sector with a growth rate of 5.3 percent. Last year, the State’s electric power generation sector employed over 20,000 workers in New Jersey, with a little over 9,000 working in the solar industry. New Jersey’s expected growth rate for all energy sector jobs for the next 12 months is between 6.8 percent to 8.5 percent.

“The New Jersey State Chamber of Commerce applauds that A-4619/S-3479 will turn underutilized and dormant sites into vibrant, productive properties that will have great economic development potential. Modifying the credits and application process of the Brownfields Redevelopment Incentive Program and the Historic Property Reinvestment Program will boost investment in these areas, enhance the local economy, provide potential tax rateables to communities and improve the environment. This legislation will also improve compliance and consistency with federal programs to encourage further investment in sites throughout the state,” said Michael Egenton, Executive Vice President, Government Relations for the New Jersey Chamber of Commerce.

"NAIOP-NJ supported the original “New Jersey Economic Recovery Act of 2020" which among other actions created the current form of EDA's Historic Property Reinvestment Program and the Brownfields Redevelopment Incentive Program. This competitive tax credit program encourages the clean-up of contaminated sites and reinvest in historic properties, completely in line with our members' (commercial developers and owners) interest in redevelopment when and where feasible. The program improvements included in A4619/S3479 make the existing program more attractive for commercial real estate developers looking to invest in areas of NJ that are ripe for redevelopment,” said Dan Kennedy, CEO of NAIOP-NJ. “We commend Governor Murphy and sponsors Senate Majority Leader Ruiz and Assemblywoman Pintor Marin for working to improve this program so projects that accelerate environmental clean-up, economic development and historic preservation can more readily proceed to construction." 

“We are grateful for the Governor's leadership in directing investment towards closing landfills and brownfields. This initiative is a historic opportunity to unlock opportunities for clean energy development on sites that were once burdens to communities,” said Eric Millard, Chief Commercial Officer, CS Energy.