Press Release
September 13, 2010
3 minute read


ARRA-Funded Program Supports CHP Facility Installation and Upgrade Projects
Trenton, N.J. (September 13, 2010) – Financing is now available from the New Jersey Economic Development Authority (EDA) through the Clean Energy Solutions ARRA Combined Heat and Power (CHP) Program. This $18-million competitive grant program is supported by the American Recovery and Reinvestment Act of 2009 and was jointly developed by the EDA and the New Jersey Board of Public Utilities (BPU).


Launched today, the program offers competitive project-based grants to support the development, design and construction of commercial, institutional and industrial entity (including public and not-for-profit entities) CHP projects in New Jersey.  Awardees will benefit from grants equal to $450 per kW (not to exceed $5 million) of installed electric generation. Applications for the program must be submitted prior to the closing of the Solicitation on October 4, 2010 at 5:00 p.m.


“Governor Chris Christie’s energy policy emphasizes in-state production of renewable and traditional energy sources to create a stronger economy and jobs by making energy more affordable, more reliable, and more often produced by New Jersey workers,” said EDA Chief Executive Offer Caren S. Franzini. “CHP will be part of the solution and we are pleased to offer businesses and public and not-for-profit organizations an opportunity to save money and create jobs while also reducing the state’s energy demand.”  


Grants provided through the program must be used for CHP facility installation and upgrade projects in New Jersey. Funds cannot be used for program soft costs, such as research feasibility studies, architectural or engineering services; equipment purchases, research and development, or demonstration project activities for technologies that are not commercially viable; and building construction or purchases of land, buildings or any structures. Aggregate federal and state funding may not exceed 50-percent of the total project cost, and applicants must provide evidence of the source of funding to complete the project and the ability to finance through market sources, which may include taxable or tax-exempt bond financing. The EDA will execute disbursements based upon mutually agreed upon milestones which may include equipment orders, equipment delivery, system installation and/or commencement of operation.


“Through this competitive grant program, New Jersey is in a better position to advance CHP projects that will help to secure our state’s energy future, enhance our environment and create jobs,” said BPU President Lee Solomon. “CHP is an efficient, clean, and reliable approach to generating power and thermal energy and this program is another indication that New Jersey will continue to lead in the development of clean energy.” 


To be eligible for the program, projects should have the ability to create and/or retain jobs, reduce greenhouse gas emissions, increase sources of renewable energy, and/or reduce energy consumption in the State of New Jersey.  Among other requirements, projects must enter commercial operation after January 1, 2011 and demonstrate the ability to commence construction by September 30, 2011. Project funds must be utilized by April 30, 2012.  Projects involving new CHP equipment must have an electric generating capacity greater than 1 MW, and projects involving upgrades of existing CHP equipment must have a net increase in generating capacity over 1 MW greater than the original capacity. Project facilities with up to 20 MW of electric generating capacity must be designed to achieve thermal efficiency levels of at least 65-percent; those with over 20 MW must achieve levels of at least 70-percent. 


For more information about the program, including the application, Solicitation and FAQs, visit  Applications will not be accepted after the Solicitation closes on October 4, 2010 at 5:00 p.m. For information on all of EDA’s products and services, contact (866) 534-7789 or email