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Combined Heat and Power Partnership

Renewable Energy Incentive Program (REIP) for Biopower

Date Last Updated11/16/2012
Incentive TypeRebate
State/FederalNJ
Incentive Administrator/Contact OfficeNew Jersey Board of Public Utilities
Incentive Initiation Date1/1/2009
Incentive Size and Funding SourceREIP offers financial and technical assistance for applicants interested in investing in biopower projects that convert acceptable biomass energy crops or waste into biogas or fuel that may be used by prime movers such as fuel cells, microturbines, spark ignition engines and combustion turbines for generating electricity. The rebate is calculated based upon the electricity generator's or prime mover's net continuous output. In order to calculate the REIP incentive, applicants are required to submit documentation to support the system rated net continuous output. Biopower incentives are paid based on the annual output of the energy generated by the facility. The REIP includes additional incentives for CHP biopower systems that recover and reuse the waste heat. For Tier I CHP systems (0 to 500,000 Watts System Rated Output) the incentive is equal to $3.00/Watt. For Tier II CHP systems (500,001 to 1,000,000 Watts System Rated Output), the incentive is equal to: [(CHP System Rated Output (Watts) - 500,000 Watts) x $2.00/Watt] + $1,500,000. The maximum incentive for CHP is $2,500,000.
Eligible RecipientMunicipalities, wastewater treatment plants and other New Jersey businesses owning systems that generate electricity with Class 1 biomass resources. These systems cannot be sized greater than the electrical consumption used in any one year.
Eligible FuelLandfill Gas; Biomass; Biogas; Other
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)60%
Other Selected Eligibility CriteriaTo qualify for a rebate, the applicant must be able to demonstrate that the acceptable biomass energy crop or waste is available on a sustainable basis and the combustion of the manufactured biogas satisfies New Jersey's regulatory emissions standards. The manufacture of the fuel can be accomplished through conversion technologies such as anaerobic digestion, gasification and pyrolysis. Examples of eligible facilities include:
  • Digestion of sewage sludge.
  • Landfill gas facilities.
  • Combustion of wood wastes to steam turbine.
  • Gasification of wood wastes to reciprocating engine.
  • Gasification or pyrolysis of biosolid wastes to generation equipment.
Application Form(s)Application Documents
Other Incentive DetailsDepending on the type of feedstock the project intends to use, a biomass sustainability determination from the New Jersey Department of Environmental Projection (NJDEP) may or may not be required.
Resource Website(s)

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