Financing New Jersey’s Clean Energy Economy

New Jersey (NJ) has made significant progress to date on renewable energy and energy efficiency deployment, but current programs and funding—primarily driven by mandates and rebates—are insufficient to help the state spark large-scale deployment and achieve its goals of a clean, resilient and low-cost energy system. Based on NJ’s current energy mix, clean energy market potential, policies, and programs, this analysis finds there is a significant opportunity to increase clean energy uptake in NJ by driving much greater private investment to these projects. The state can play a catalytic role in mobilizing this investment, using public funds to finance clean energy through dedicated institutions and mechanisms that leverage private capital from a range of sources into renewable energy, energy efficiency, and clean transportation. NJ could establish this focused financing operation within a new public State Bank, by expanding the NJ Environmental Infrastructure Trust (EIT), or by creating a new stand-alone Green Bank. This paper analyzes these institutional options, as well as additional financial mechanisms that can help the state leverage private investment to achieve its clean energy goals.