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Combined Heat and Power Partnership

Clean Energy Solutions Large Scale CHP-Fuel Cells Program

Date Last Updated7/15/2013
Incentive TypeGrant
State/FederalNJ
Incentive Administrator/Contact OfficeNew Jersey Economic Development Authority
Incentive Initiation Date4/25/2012
Incentive Size and Funding SourceThe New Jersey Economic Development Authority (EDA) provides project-based grants for the installation of CHP or fuel cell systems. The grant award will be a function of the system size and amount of electricity that the CHP or fuel cell project generates. The grant award cannot exceed $3 million per project with the maximum percent of project cost capped at 30% for CHP and 45% for fuel cells. EDA will execute disbursements for committed funds as invoices are submitted and validated by the New Jersey Board of Public Utilities (BPU). Payments will be based on meeting mutually agreed upon milestones, which may include equipment orders, equipment delivery, system installation and/or commencement of operation. There are three main disbursements, as follows:
  • At time company makes non-refundable deposit on equipment (up to 30% of amount awarded).
  • Upon equipment delivery (up to 70% of amount awarded, not to exceed 90% of total amount awarded when combined with the prior disbursement).
  • Upon system installation (award remainder).
Grant amounts are as follows:
  • CHP systems greater than 1.0 and up to 3.0 MW: $0.55 per watt.
  • CHP systems greater than 3.0 MW: $0.35 per watt.
  • Fuel cells greater than 1.0 MW with waste heat utilization: $2 per watt.
  • Fuel cells greater than 1.0 MW without waste heat utilization: $1.50 per watt.
Eligible RecipientNew Jersey-based Government (Federal, State or Local), Commercial, Institutional or Industrial entity (including 501 c (3)).
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Greater than 1.0 MW
Minimum Efficiency Required (%)CHP systems must achieve annual system efficiency of at least 65%. Fuel cells without heat recovery must achieve annual system efficiency of at least 45%.
Other Selected Eligibility CriteriaOnly stationary CHP or fuel cell equipment installed on the customer side of the meter is eligible. This is includes prepackaged generating systems. Equipment must be new, commercially available and permanently installed. CHP or fuel cell system must have an all-inclusive warranty for at least 10 years. Companies must be in compliance with all applicable laws and permits. Projects are expected to use mature or emerging technologies that maximize energy production during peak demand periods with the least impact on the environment.
Application Form(s)CHP Technical Application (PDF) 33 pp, 760K)
Other Incentive DetailsEffective July 1, 2013 the small CHP-FC program (for projects 1 MW and below and managed by TRC) and the large CHP-FC program (for large scale projects and formerly managed by EDA) will be combined into a single program, managed by TRC. Those applications for large scale CHP projects that were submitted to EDA by June 30, 2013 will be managed by EDA through completion.

For projects 1 MW and below, entities can continue to use the current application. For large scale projects, the application is currently under development and applicants should contact TRC (866-NJSMART/option 4) for more information.
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