Press Release
August 3, 2009
3 minute read


Performance-Based Grants to Support Combined Heat and Power Projects

TRENTON, N.J. (Aug. 3, 2009)  – New Jersey has introduced the latest component of its Clean Energy Solutions product portfolio designed to support Gov. Jon S. Corzine’s commitment to promote economic development and a more secure and environmentally responsible energy future. The new Clean Energy Solutions CHP grant program is aimed at enabling the state to meet its Energy Master Plan goal of developing 1,500 megawatts of combined heat and power electric generating capacity by the year 2020.


Clean Energy Solutions is a unified effort of the New Jersey Economic Development Authority (EDA), the New Jersey Board of Public Utilities (BPU) and the New Jersey Department of Environmental Protection.

“Governor Corzine’s Energy Master Plan is one of the more aggressive blueprints of its kind anywhere in the nation to target the reduction of greenhouse gases and the creation of green-collar jobs,” said EDA Chief Executive Officer Caren S. Franzini. “CHP will be part of the solution, offering performance-based grants of $450 per kilowatt of installed electric generation capacity on a first-come, first-served basis to encourage the development of combined heat and power projects.”

The goal of the New Jersey Energy Master Plan is to reduce energy consumption by 20 percent and generate at least 30 percent of the state’s electricity from renewable sources by the year 2020, explained Franzini. A bill signed into law by Governor Corzine earlier this year appropriated at least $60 million from the Retail Margin Fund for the CHP financial incentives. Since 2003, the state has assessed a retail margin fee of one-half cent per kilowatt on commercial and industrial customers that have a peak load of greater than 750 kilowatts and that continue to buy electric supplies from their utility.

“CHP projects can save businesses money while reducing the state’s energy demand and improving air quality for all who live and work in our state,” said BPU President Jeanne M. Fox. “They help secure New Jersey’s energy future while creating jobs and enhancing our environment.”   

To qualify for a grant, CHP projects must meet all of the following criteria:

  • Serve a commercial, institutional or industrial electricity customer in New Jersey eligible to pay the retail margin.

  • Provide electricity to the facility located at the project site, although surplus power may be sold to the interstate power grid.

  • Have an electric generating capacity of more than one megawatt.

  • Be designed to achieve thermal efficiency levels of at least 65 percent, or at least 70 percent for facilities with electric generating capacity of greater than 20 megawatts.

Applications for this round of funding must be submitted by Sept. 14, 2009.

CHP is the second Clean Energy Solutions program to be introduced in the last month. In July, the Clean Energy Solutions Capital Investment (CESCI) Loan/Grant was announced to support commercial, institutional or industrial entities advancing energy-efficient end-use projects, CHP production facilities, or construction of state-of-the-art, efficient electric generation facilities, including Class I and Class II renewable energy. CESCI provides zero-interest loans and grants up to $5 million with up to a 10-year loan term to fund the purchase of fixed assets, including real estate and equipment.

CESCI loans and grants are capitalized through the Regional Greenhouse Gas Initiative’s Global Warming Solutions Fund. Other Clean Energy Solutions resources will be introduced over the next several months.

CHP also complements other existing state clean energy programs to promote economic development, including the Clean Energy Manufacturing Fund (CEMF). Grants and loans totaling up to $3.3 million per company per project are available through this fund, which has been designed to encourage manufacturers of renewable energy and energy-efficiency products and services to locate and grow in New Jersey and specifically supports companies looking to site or materially expand a Class I renewable energy or energy efficiency product manufacturing facility in the state.

Businesses interested in learning more about all Clean Energy Solutions opportunities should visit for additional information and application forms.