Press Release
April 25, 2012
3 minute read


Large Scale CHP/Fuel Cell Program Will Help Reduce Energy Costs and Consumption for Consumers, Businesses and Government

TRENTON, N.J. (April 25, 2012) – In support of the Christie Administration’s commitment to a greener and more affordable use, management and development of energy in the state, the New Jersey Economic Development Authority (EDA) and the New Jersey Board of Public Utilities (BPU) today launched the Large Scale Combined Heat and Power (CHP)/Fuel Cell Program.  This competitive grant program was created to support CHP and standalone fuel cell projects serving commercial, institutional and industrial customers in New Jersey.

“Promoting and advancing a more sustainable New Jersey is a top priority of the Christie Administration, and this new program will help to increase energy efficiency for businesses and reduce energy costs for all New Jersey consumers,” said EDA Chief Executive Officer Caren Franzini. 

The program is available to support CHP or standalone fuel cell projects with an electric generating capacity of greater than one megawatt (MW).  New Jersey-based government (federal, state or local), commercial, institutional or industrial entities advancing these projects are eligible.  Applications for the program must be submitted prior to the closing of the competitive solicitation, which runs from April 25, 2012 through June 25, 2012 at 5:00 p.m.

“The 2011 Energy Master Plan supports the expansion of Distributed Generation and Combined Heat and Power resources to commercial and industrial facilities,” said NJ Board of Public Utilities President Bob Hanna.  “Such expansion will further the objectives of the Christie Administration by driving down energy costs, which will make New Jersey businesses more competitive, and by increasing the use of cleaner fuels which will improve the environment.”

To be eligible, CHP systems greater than one MW with waste heat utilization must achieve annual system efficiency of at least 65 percent; fuel cell projects greater than one MW without heat recovery must achieve annual system efficiency of at least 45 percent.  CHP and fuel cell system warranties must be all-inclusive for at least five years.  Additionally, businesses should create or maintain jobs in New Jersey.

Grants under the program will be awarded under a tiered incentive structure based on the system size and amount of electricity that the CHP or fuel cell project generates, with a maximum award of $3 million per project.  Total state and/or federal funding cannot exceed 50 percent of the total project cost.  Funding can be used for project-specific, fixed asset purchases.  New installations are eligible, as are expansions of existing facilities with new equipment. New equipment must be commercially available and permanently installed.  Applicants must provide evidence that a source of funds is needed to complete the project. 

The tiered incentive structure is as follows:

CHP Projects

Greater than 1 MW to 3 MW – $0.55 per watt

Greater than 3 MW – $0.35 per watt

Maximum Incentive – $3 million

Maximum Percent of Project Cost – 30%

Fuel Cell Projects

Greater than 1 MW (with Waste Heat Utilization) – $2.00 per watt
Greater than 1 MW (without waste heat utilization) – $1.50 per watt
Maximum Incentive – $3 million

Maximum Percent of Project Cost – 45%

The EDA will accept program applications beginning April 25, 2012. The application deadline for the competitive solicitation is June 25, 2012 at 5:00 p.m. Applications will be subject to an initial technical screening process, and the full evaluation will include a detailed technical review by BPU and extensive business and financial due diligence undertaken by EDA.  Applicants must complete and submit EDA’s online application via

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at or call the Business Action Center at (866) 534-7789.