Clean Energy Solutions ARRA CHP Program

October 04, 2011


Note: The most recent solicitation under this program expired October 4, 2010 and the program is no longer accepting applications. Additional solicitations may be issued in the future, subject to the availability of funding.

The New Jersey Economic Development Authority (EDA) is offering grants for the installation of combined heat and power (CHP) systems to commercial, industrial, and institutional entities (including non-profits and public entities). Grants of $450 per kilowatt (kW) up to $5 million are available for CHP systems of at least 1 megawatt (MW) in size. Qualifying systems may be new or may involve upgrades to existing equipment with the grant amount calculated on the increase in system capacity. State and federal funds in aggregate may not exceed 50% of the total cost of the project (including ARRA funding).

In order to qualify for funding, projects are expected to use mature or emerging technologies that maximize energy production during peak demand periods with the least impact on the environment. The program will support the installation of CHP equipment, but will not support soft costs such as R&D or feasibility/engineering studies; equipment purchases or other activities associated with equipment that is not commercially viable; or building construction and land purchases. Grant awards are competitive and proposed projects will be evaluated for funding based on their prospects for quick completion; ability to create or maintain jobs; potential to reduce greenhouse gas (GHG) emissions; and the total energy to be created or saved. All projects must be placed in service after January 1, 2011, commence construction by September 30, 2011 and utilize project funds by April 30, 2012.

The program is funded by the American Recovery and Reinvestment Act (ARRA), thus projects must comply with associated federal aid rules (e.g., Davis-Bacon wage rates, ARRA Buy America provisions, etc.). Applications for the most recent round of funding were due October 4, 2010 although additional solicitations may be offered subject to the availability of funding. Please see the program web site for additional information and program materials.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New Jersey
Incentive Type: Grant Program
Web Site:
Administrator: New Jersey Economic Development Authority
Start Date: 09/13/2010 (current solicitation)
Eligible Renewable/Other Technologies:
  • Combined Heat & Power
Incentive Amount: $450 per kW
Maximum Incentive: $5 million; aggregate state and federal funding may not exceed 50% of cost
Equipment Requirements: 20 MW or less: thermal efficiency of 65% or greater
Larger than 20 MW: thermal efficiency of 70% or greater
Installation Requirements: Electricity generated should be consumed on-site to the maximum extent feasible

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.