Clean Energy Solutions Capital Investment Loan/Grant Program

Summary

Note: This program closed to new applications in October 2009. It is not known if and when a new application cycle will be opened. The New Jersey Clean Energy Solutions Capital Investment program is intended to provide grants and loans for end-use energy efficiency, combined heat and power (CHP), and state-of-the-art electricity production projects, including renewable energy projects that use Class I and Class II resources as defined under the state renewable portfolio standard (RPS). In order to qualify for assistance, applicants must be New Jersey-based commercial, industrial, or institutional entities. Eligible projects must have minimum capital equipment costs of at least $1 million, should create or maintain jobs in New Jersey, and meet N.J.A.C. 7:27D-2.2 regulatory requirements relating to project award criteria. Funding for the program comes from the New Jersey Global Warming Solutions Fund which receives revenue from the sale of greenhouse gas emission allowances under the Northeast Regional Greenhouse Gas Initiative (RGGI). Proceeds may be used for the purchase of fixed assets and real estate. Projects that meet the above qualifying criteria are eligible for zero-interest loans with terms of up to 10 years. Loans are limited to 50% of project costs up to a maximum of $5 million. A portion of the loan may be issued as a grant, with the grant/loan split based on project's environmental and economic development impact. Grants are limited $2.5 million and may not exceed 80% of the amount requested. Grants for energy efficiency projects in commercial buildings are limited to 20% of the amount requested. It is important to note that grants are only issued in connection with loan applications. Applicants are not permitted to apply solely for a grant. Projects that generate solar renewable energy certificates (SRECs) are eligible only for loans (i.e., they are ineligible to receive a portion of the funds requested as a grant). Loans may be amortized up to 20 years based on the depreciable life of the asset. All project applicants must apply for and receive a Tax Clearance Certificate from the New Jersey Division of Taxation. The program website contains additional program requirements, details, and FAQs. Interested parties may consult the program website or use the contact information below to obtain further information about the program.