Clean Energy Solutions Large Scale CHP and Fuel Cells Program

Summary

NOTE: As of December 11, 2015, New Jersey's Clean Energy Program's has temporarily ceased accepting applications for the Combined Heat & Power and Fuel Cell Program (CHP/FC). The CHP/FC program has experienced a surge in applications since the start of FY16 and has a pipeline that currently exceeds the CHP/FC Board-approved program budget. Staff is currently reviewing potential funding reallocations among programs to continue the program in the near term.

Eligibility:

The New Jersey Clean Energy Program (NJCEP) offers grants for the installation of combined heat and power (CHP) or fuel cell systems to commercial, industrial, and institutional entities (including non-profits and public entities). In order to qualify for incentives, the applicant must be a contributor to the Societal Benefits Charge (SBC). Equipment must be commercially available, permanently installed, and installed on the customer side of the meter. Expansions of existing facilities may be eligible, though only the incremental expansion will be eligible for the incentive. Systems must have at least a 10-year all inclusive warranty or service contract and must be sized to meet the customer's electrical load (no more than 100% of historical annual consumption or peak demand). Third-party owned systems are eligible and must comply with the 10-year minimum warranty or service contract requirement.

Program Description:

The incentives amount depends on different size of the system. The grant amounts are as follows:

Additional incentive of $0.25/ Watt (capped at $250,000) is offered for projects participating in Pay for Performance prior to applying to CHP or Fuel cell incentive.

Incentives for CHP facilities greater than 1 MW are tiered, meaning that a 4 MW CHP system would receive $0.55/Watt for the first 3 MW and $0.35/Watt for the remaining 1 MW. Other incentives are not tiered. Grants are limited to $3,000,000 per project. CHP projects are capped at 30% of the project costs, and fuel cell projects are capped at 45% of project costs. The program incentives are paid out in three payments- 30% upon purchase of equipment, 60% upon project installation, and 10% after a year of achieving performance thresholds.

In order to qualify for funding, projects are expected to use mature or emerging technologies that maximize energy production during peak demand periods with the least impact on the environment. The program will not support soft costs such as R&D or feasibility/engineering studies; equipment purchases or other activities associated with equipment that is not commercially viable; or building construction and land purchases. Under the current solicitation grant applications are reviewed and approved on a first-come, first-served basis. Proposed projects will be evaluated for funding based on readiness to proceed and efficiency; ability to create or maintain jobs; potential to reduce greenhouse gas (GHG) emissions; and the total energy to be created or saved. Please see the program web site for additional information and program materials.