Small Scale CHP and Fuel Cell Incentive Program
| Date Last Updated | 11/16/2012 |
| Incentive Type | Grant |
| State/Federal | NJ |
| Incentive Administrator/Contact Office | New Jersey Board of Public Utilities |
| Incentive Initiation Date | 6/14/2012 |
| Incentive Size and Funding Source | The New Jersey Board of Public Utilities offers incentives for CHP and Fuel Cell systems. Incentives will be processed by the Market Manager and paid as follows: 20% of the incentive upon proof of equipment purchase; 60% upon project completion and verification of installation by Market Manager; 20% one year after project inspection and confirmation the project is achieving the proposed and/or minimum efficiency threshold. The program budget for 2012 is $20 million.
For CHP Powered by Non-Renewable Fuel Sources (including microturbines, internal combustion engines and combustion turbines): - NJCEP Incentive (up to $1 Million): 500 kW = $1.00/Watt or 501 - 1,000 kW = $0.50/Watt.
- NJCEP Pay for Performance Bonus (up to additional $250,000): $0.25/Watt.
- Utility Match (1:1) $/Watt match up to an additional $1 Million: 500 kW = $1.00/Watt or 501-1,000 kW = $0.50/Watt.
- Maximum percent of Project Cost: 30% or 40%.
For CHP Powered by Class 1 Renewable Fuel Source (includes microturbines, internal combustion engines and combustion turbines): - NJCEP Incentive (up to $1 Million): 500 kW = $3.00/Watt or 501 - 1,000 kW = $2.00/Watt.
- Maximum percent of Project Cost: 40%.
For Heat Recovery or Other Mechanical Recovery (from existing equipment using new electric generation equipment): - NJCEP Incentive (up to $1 Million): $0.50/Watt.
- NJCEP Pay for Performance Bonus (up to additional $250,000): $0.25/Watt.
- Utility Match (1:1) $/Watt match up to an additional $1 Million: $0.50/Watt.
- Maximum percent of Project Cost: 30%.
For fuel cells with waste heat utilization (not fueled by Class 1 renewable fuel): - NJCEP Incentive (up to $1 Million): $2.00/Watt.
- NJCEP Pay for Performance Bonus (up to additional $250,000): $0.25/Watt.
- Utility Match (1:1) $/Watt match up to an additional $1 Million: $2.00/Watt.
- Maximum percent of Project Cost: 60%.
For fuel cells without waste heat utilization (not fueled by Class 1 renewable fuel): - NJCEP Incentive (up to $1 Million): $1.50/Watt.
- NJCEP Pay for Performance Bonus (up to additional $250,000): $0.25/Watt.
- Utility Match (1:1) $/Watt match up to an additional $1 Million: $1.50/Watt.
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| Eligible Recipient | Owners of CHP and fuel cell systems with recovery and productive use of waste heat that are located on-site and installed in New Jersey are eligible. Applicants must be contributors to the Societal Benefits Charge fund. |
| Eligible Fuel | Does Not Specify |
| Eligible Project Size (MW) | <1.0 MW |
| Minimum Efficiency Required (%) | CHP or fuel cell systems using waste heat must achieve annual system efficiency of at least 60%; electric only generation must achieve 45% electrical efficiency. |
| Other Selected Eligibility Criteria | Additional Requirements: - CHP or Fuel Cell equipment must be stationary and installed on the customer side of the meter.
- CHP or Fuel Cell system warranty must be all-inclusive for at least 5 years, or have a 5 year service contract.
- Equipment must be sized to serve all or a portion of the electrical load at the customer site, but no more than 100% of the customers electric load.
- Expansion of an existing facility with new equipment is also eligible for incentives, however only the incremental expansion would be eligible for the incentive. The combined capacity of the proposed expansion and existing generators are held to sizing requirements listed above.
- Equipment must be new, commercially available and permanently installed.
The following are not eligible for incentives: renewable source-fueled systems (Renewable fueled projects must be submitted to the Renewable Energy Market Manager through the REIP Program under the NJCEP); portable and emergency backup power systems; used, refurbished, temporary, pilot or demonstration equipment; systems that use diesel fuel, coal or other types of oil for continuous operation. |
| Application Form(s) | Application Documents |
| Resource Website(s) |
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