New Jersey would offer nonprofits interest-free loans for energy upgrades

The Board of Public Utilities would offer interest-free loans for energy systems and energy-saving building upgrades. Private nonprofits with federal 501(c)(3) tax-exempt status could apply. Energy systems must be in New Jersey, serve on-site needs, and support state greenhouse gas reduction goals. Borrowers would cover at least 10% of project costs and repay their loans. Loans to buy and install energy systems would require projected lifetime energy cost savings covering total loan costs. Applicants with yearly budgets of $1 million or less would get priority.

The state would set aside $5 million and create a fund for the loan program. The initial money would come from the state's General Fund. Borrowers' repayments would return to the program fund for reuse. The fund could pay only for program loans and the board's costs to run the program. If enacted, the law would take effect immediately.