NJEDA Updates EV-Fleet and Building-Decarbonization Grants

State economic-development agencies increasingly use targeted grants to help businesses cut energy costs and emissions. In late August 2026, New Jersey updated two such programs — one aimed at electric-vehicle fleets, the other at decarbonizing existing buildings.

For companies operating in New Jersey — where energy and fleet costs factor into competitiveness — the changes reshape what each grant funds and what a qualifying project must include.

Recent Program Activity: What Changed

At its August 20, 2026 board meeting, the NJEDA Board approved modifications to the Take Charge Program and the NJ Cool Program; the Authority announced the changes in an August 26 release. Their stated aims were to advance new solar and energy-storage installations, reduce energy bills, and drive down greenhouse-gas emissions.

The Authority framed the updates as part of Governor Mikie Sherrill’s energy-affordability agenda — expanding power supply, easing strain on the grid, and lowering energy costs for businesses. Importantly, the two programs serve distinct purposes, and the modifications tightened the project requirements for each.

Program Overview: Two Distinct Grants

Take Charge — EV charging for commercial fleets

Take Charge is a $25 million pilot, funded by Regional Greenhouse Gas Initiative (RGGI) proceeds, that helps for-profit organizations with two or more commercial-use vehicles install electric-vehicle charging infrastructure in New Jersey, covering hardware and related installation costs. Under the modification, awards range from $100,000 to $5 million and generally cover 50% of eligible project costs, subject to applicable bonuses, program caps, and final program guidance, and each project must now include on-site renewable energy generation or energy storage.

NJ Cool — decarbonizing existing buildings

NJ Cool, first approved in 2023 and opened to applications in 2024, is a building-decarbonization grant for commercial, industrial, and institutional properties located in designated overburdened communities or adjacent areas. Under its current Phase 2, a project must include both clean heating and cooling work and on-site renewable generation or storage, with awards of up to $1 million covering up to 50% of eligible costs. The detailed program terms limit commercial and industrial applicants to less than $5 million in annual revenue and set a $100,000 minimum project cost.

Why It Matters

Energy and fleet-electrification costs are a growing factor in where and how companies operate, particularly for logistics-heavy and energy-intensive businesses. By adjusting award terms and requiring on-site renewables or storage, New Jersey is steering both grants toward projects that lower operating costs and emissions while easing demand on the grid.

For eligible businesses, the practical effect is capital for charging infrastructure or building upgrades — but with a narrower definition of what each program funds and a new expectation that projects pair the core work with on-site clean energy.

What Companies Should Do

Businesses should first match their project to the right program — EV-fleet charging under Take Charge, or building decarbonization under NJ Cool — and confirm they meet the applicant, revenue, and project-cost thresholds, including the new on-site renewable or storage requirement. Because neither modified application window was open as of late August 2026, companies should watch the live NJEDA program pages for the reopening and confirm the final terms before applying.

Companies weighing New Jersey against other states can also factor these grants into their total operating-cost analysis, since fleet and energy incentives can meaningfully affect long-run economics.

How SSG Can Help

Site Selection Group helps companies evaluate state and local incentive programs as part of location and operating-cost decisions. We track program changes as they happen, assess how evolving eligibility and funding rules apply to a specific facility, fleet, or project, and help clients time and structure their approach to capture available benefits.

If your organization operates in New Jersey or is weighing New Jersey against other states, contact SSG to evaluate how programs like Take Charge and NJ Cool fit into your broader incentive and location strategy.

Program details verified against primary sources as of August 31, 2026. Program rules, application status, and administrative guidance can change; confirm current details with the administering agency before acting. This article is provided for general information and does not constitute tax or legal advice.