Starting on January 1, 2013, New Jersey commercial and industrial (C&I) ratepayers will be eligible for a new credit against their Societal Benefits Charge (SBC) contributions. The credit was signed into law by New Jersey Governor Chris Christie on January 17, 2012. Under the provisions of the statute (N.J.S.A. 48:3-60.3), C&I ratepayers may be eligible for a credit against their SBC charge equal to one-half of the costs incurred for the purchase and installation of energy efficiency products and/or services.

The SBC is a charge imposed on New Jersey ratepayers on a per kWh basis for electricity and a per therm basis for natural gas. The charge equates to approximately 3.8 percent of a customer’s energy bill and is primarily used to fund New Jersey’s Clean Energy Program (CEP). N.J.S.A. 48:3-60.3 provides that C&I ratepayers will be eligible for credits equal to 50 percent of the costs of the energy efficiency project, and up to 100 percent of the ratepayer’s SBC obligation. However, if the credit exceeds the SBC obligation in a given year, it may be carried over for up to 10 additional years.