Clean Energy Solutions ARRA CHP Program (New Jersey)

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Last modified on February 12, 2015.

Financial Incentive Program

Place New Jersey

Name Clean Energy Solutions ARRA CHP Program
Incentive Type State Grant Program
Applicable Sector Commercial, Industrial, Institutional, Local Government, Nonprofit, Schools
Active Incentive No
Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs
Amount 450 per kW

Equipment Requirements 20 MW or less: thermal efficiency of 65% or greater

Larger than 20 MW: thermal efficiency of 70% or greater

Start Date 09/13/2010 (current solicitation)

Installation Requirements Electricity generated should be consumed on-site to the maximum extent feasible

Maximum Incentive 5 million; aggregate state and federal funding may not exceed 50% of cost

Program Administrator New Jersey Economic Development Authority

References DSIRE[1]


Note: The most recent solicitation under this program expired October 4, 2010 and the program is no longer accepting applications. Additional solicitations may be issued in the future, subject to the availability of funding.

The New Jersey Economic Development Authority (EDA) is offering grants for the installation of combined heat and power (CHP) systems to commercial, industrial, and institutional entities (including non-profits and public entities). Grants of $450 per kilowatt (kW) up to $5 million are available for CHP systems of at least 1 megawatt (MW) in size. Qualifying systems may be new or may involve upgrades to existing equipment with the grant amount calculated on the increase in system capacity. State and federal funds in aggregate may not exceed 50% of the total cost of the project (including ARRA funding).

In order to qualify for funding, projects are expected to use mature or emerging technologies that maximize energy production during peak demand periods with the least impact on the environment. The program will support the installation of CHP equipment, but will not support soft costs such as R&D or feasibility/engineering studies; equipment purchases or other activities associated with equipment that is not commercially viable; or building construction and land purchases. Grant awards are competitive and proposed projects will be evaluated for funding based on their prospects for quick completion; ability to create or maintain jobs; potential to reduce greenhouse gas (GHG) emissions; and the total energy to be created or saved. All projects must be placed in service after January 1, 2011, commence construction by September 30, 2011 and utilize project funds by April 30, 2012.

The program is funded by the American Recovery and Reinvestment Act (ARRA), thus projects must comply with associated federal aid rules (e.g., Davis-Bacon wage rates, ARRA Buy America provisions, etc.). Applications for the most recent round of funding were due October 4, 2010 although additional solicitations may be offered subject to the availability of funding. Please see the program web site for additional information and program materials.

Incentive Contact

Contact Name Program Information - Clean Energy Solutions ARRA CHP Program
Department New Jersey Economic Development Authority
Address 36 West State Street
Address 2 P.O. Box 990
Place Trenton, New Jersey
Zip/Postal Code 08625-0990


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"