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Incentives

Incentives vary based on CHP technology, type, project size and total project cost. See Table 1 for qualifying technologies and available incentives.

TABLE 1: CHP INCENTIVE PROGRAM TECHNOLOGY AND INCENTIVE LEVELS

Eligible Technology(1)

Incentive(2)
($/Watt)
(Up to 1.0 Million)

Maximum % of
Project Cost

Minimum
System Size

Level 1

  • Fuel cells not fueled by Class I renewable fuel.

$4.00/W*

*For Fuel Cells: Incentives will not exceed $1 Million per applicant

60%

None

Level 2

  • Microturbines
  • Internal Combustion Engines
  • Gas Combustion Turbines

$1.00/W

30%(3)

None

Level 3

  • Heat Recovery or Other Mechanical Recovery Electric Generation Equipment

$0.50/W

30%

None

(1) Insert New Jersey's code requirements or any other mandates if applicable to the appropriate technology.
(2) No one particular tier will get more than 50% of the funding available, subject to review after six (6) months.
(3) The maximum % of project cost will go to 40% where a cooling application is used or included with the CHP system.

Warranty Requirements

Systems installed must be covered by a warranty of 5 years, or a 5 year service contract.