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Combined Heat and Power Partnership

New Jersey Renewable Energy Incentive Program (REIP)

Date Last Updated12/24/2012
Incentive TypeProduction Incentive
State/FederalNJ
Incentive Administrator/Contact OfficeNew Jersey Board of Public Utilities
Incentive Initiation Date1/1/2009
Incentive Size and Funding SourceNew Jersey's 1999 electric restructuring legislation provides for investments in energy efficiency and renewable energy through a "Societal Benefits Charge" (SBC) collected from all customers of electric public utilities. In March 2001, the New Jersey Board of Public Utilities (BPU) approved funding for renewable-energy programs. Any Renewable Energy Credits (RECs) generated remain with the project owner. The program's budget is $23.1 million.

Sustainable Biomass and Fuel Cell Systems (including CHP): These systems are currently eligible for rebates under a two-tiered incentive structure. Systems that incorporate CHP are eligible for slightly higher incentives. Rebates for all systems regardless of size are limited to 30% of installed costs (maximum for incentive schedule is $1.5 million), or 40% of installed costs if the system incorporates CHP (maximum for incentive schedule is $2.5 million). The rebate schedule is as follows:
  • $2.00 per watt for the first 500 kW, $3.00 per watt with CHP.
  • $1.00 per watt for the next 500 kW, $2.00 per watt with CHP.
Wind and Biomass Feasibility Studies: Non-residential wind and biomass projects of 100 kW or larger which are sized in order to be eligible to net meter (i.e., expected energy production should not exceed 100% of historical or expected on-site consumption) are eligible for feasibility study incentives at the following levels:
  • Systems size of 100 - 500 kW: 50% of cost up to $25,000.
  • Systems size of 501 - 1,000 kW: 50% of cost up to $50,000.
Eligible RecipientAll commercial, agricultural, industrial, residential, and multi-family residential property owners are eligible. Nonprofits, schools, local government, state government, tribal government, federal government and institutions are also eligible.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)For Biomass Feasibility Studies projects must be >0.1 MW and <1.0 MW.
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaCurrently, eligible technologies include fuel cells and/or sustainable biomass-energy technologies. Systems must have at least a 5-year, all-inclusive warranty. Eligible systems should be sized to produce no more than 100% of the historical or expected (if new construction) amount of electricity consumed at a system's site. Generally, systems and components must be new, in compliance with all applicable performance and safety standards. Installation must comply with all federal, state and local codes; must meet detailed siting criteria specified in program guidelines; new construction must be located in a Smart Growth region.

In addition, all agricultural, commercial, industrial and non-profit customers must apply for and receive a Tax Clearance Certificate from the New Jersey Division of Taxation in order to be eligible for financial assistance under this program. The objective of this new requirement is to ensure that all recipients of taxpayer funded support are in full compliance with their state tax obligations. This mandate does not affect single-family residential customers.
Application Form(s)Application Documents
Other Incentive DetailsSystem capacity limits and rebate amounts (including those for system additions) are calculated on a "per site" basis. In other words, for program purposes multiple systems on the same parcel or located on adjacent or contiguous properties under common ownership are aggregated together as a single system.
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