Applications are open
Combined Heat and Power/Fuel Cell Program
The Combined Heat and Power/Fuel Cell incentive program offers financial incentives for the installation of Combined Heat & Power (CHP) and Fuel Cell (FC) installations.
Status
Applications are open
Schedule
Open year-round
Program Contacts
Relevant Audiences
On this page
About the Program
One of the goals of the State of New Jersey is to enhance energy efficiency through on-site power generation with recovery and productive use of waste heat, and to reduce existing and new demands on the electric power grid. The Board of Public Utilities seeks to accomplish this goal by providing financial incentives for Combined Heat & Power (CHP) and Fuel Cell (FC) installations.
Is a CHP system right for me?
A CHP Feasibility Study can evaluate if a Combined Heat and Power system is right for you. The program offers an incentive to offset 75% of the cost of the feasibility study, up to $75,000. Learn more about the program:
Incentives
The incentive table below is for Fuel Cells that demonstrate at least 60% efficiency and CHPs including:
- gas internal combustion engines
- gas combustion turbines
- microturbines
| Size (Installed Rated Capacity) | Incentive ($/Watt) | % of Total Cost Cap per Project | $ Cap per Project |
|---|---|---|---|
| ≤500 kW | $2.00 | 30-40% | $2 million |
| >500 kW – 1 MW | $1.00 | 30-40% | $2 million |
| >1 MW- 3 MW | $0.55 | 30% | $3 million |
| >3 MW | $0.35 | 30% | $3 million |
The incentive table below is for Fuel Cells demonstrating at least 40% efficiency:
| Size (Installed Rated Capacity) | Incentive ($/Watt) | % of Total Cost Cap per Project | $ Cap per Project |
|---|---|---|---|
| Same as table above | Same as table above | 30% | $1 million |
The incentive table below is for Waste Heat to Power (WHP) systems including heat recovery or other mechanical recovery from existing equipment utilizing new electric generation equipment (e.g. steam turbine):
| Size (Installed Rated Capacity) | Incentive ($/Watt) | % of Total Cost Cap per Project | $ Cap per Project |
|---|---|---|---|
| ≤1 MW | $1.00 | 30% | $2 million |
| >1 MW | $0.50 | 30% | $3 million |
Please see the Program Guide for complete incentive information.
Application Process
Please see the Program Guide for complete information.
Trade Allies
To help consumers find a contractor to assist them with their CHP or Fuel Cell project, the New Jersey Board of Public Utilities provides a list of trade allies. This database is provided as an informational source only. Access the database at the link below:
New Jersey's Clean Energy Program invites contractors to be a part of the program's trade ally database. Find more information on how to join the program below: