Combined Heat & Power (CHP) Program (New Jersey)

From Open Energy Information


Last modified on September 25, 2013.

Financial Incentive Program

Place New Jersey

Name Combined Heat and Power (CHP) Program
Incentive Type State Rebate Program
Applicable Sector Commercial, Industrial, Agricultural, Institutional
Eligible Technologies Heat recovery, CHP/Cogeneration, Fuel Cells
Active Incentive No
Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs
Amount Varies by system type

Eligible System Size None (incentives paid up to 1 MW)

Funding Source New Jersey Societal Benefits Charge (SBC)

Maximum Incentive 4.00/watt (for funding round that expired 6/30/2006)


References DSIRE[1]


Note: Applications for the most recent round of funding from the New Jersey Combined Heat and Power Program were due June 30, 2006. The information below describes incentives available through that date. The New Jersey Clean Energy Program anticipates that more program funding will be available in the future. Check the New Jersey Clean Energy Program web site periodically for additional information.

The New Jersey Combined Heat and Power (CHP) Program provides incentives that vary based on CHP technology, type, project size and total project cost. To qualify, a facility must be located in New Jersey, and the customer must be a contributor to the Societal Benefits Charge fund. Incentives are paid out only up to one megawatt (MW) of capacity. There is no minimum project size. Any portion of a customer's load that is committed to an interruptible or peak load reduction program is not eligible for incentives. However, these customers can seek incentives for generation capacity to cover their uncommitted load.

Qualifying fuel cells not fueled by a "Class I" renewable fuel are eligible for an incentive of $4.00 per watt, not to exceed 60% of a project's cost. Qualifying microturbines, internal combustion engines and gas combustion engines are eligible for an incentive of $1.00 per watt, not to exceed 30% of a project's cost. Qualifying electric-generating systems utilizing heat recovery or other mechanical recovery are eligible for an incentive of $0.50 per watt, not to exceed 30% of a project's cost. Used, refurbished, temporary, pilot, demonstration and back-up generation do not qualify for incentives under this program. Systems or equipment that use diesel fuel, oil or coal for start-up or continuous operations also are not eligible.

CHP systems must achieve an average annual fuel efficiency of at least 60%, based on total energy input and total utilized energy output. Mechanical energy may be included in the efficiency evaluation. In addition, systems should have the ability to island (disconnect) from the utility in the event of substantial grid congestion or failure. Systems installed must be covered by a five-year warranty or a five-year service contract. See the program web site for additional details.

Contact your gas utility for more information and additional program requirements:

  • Elizabethtown Gas - (800) 221-0364
  • PSE&G - (973) 430-7886
  • NJ Natural Gas - (732) 919-8133
  • South Jersey Gas - (609) 561-9000 ext. 4271

  • 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)"