New Jersey Renewable Energy Incentive Program (Sustainable Biopower)

Summary

NOTE: The program is currently open for second round of solicitations for program year 2015. Proposals are due by April 18, 2015. The program manual can be accessed here. 

New Jersey's 1999 electric restructuring legislation provides for investments in energy efficiency and renewable energy through a "Societal Benefits Charge" (SBC) collected from all customers of electric public utilities. In March 2001, the New Jersey Board of Public Utilities (BPU) approved funding for renewable-energy programs, including a customer-sited renewables rebate program for homes, businesses, institutions and non-profits. The program is currently managed by Honeywell under supervision of NJ BPU.

Currently, NJ Renewable Energy Incentive Program (REIP) offers incentives for Sustainable Biomass and Renewable Energy Storage. 

The wind energy portion of the program has been on hold and is not accepting any new applications. The rebates for the photovoltaic (PV) installations are no longer offered through this program. PV systems remain eligible to generate Solar Renewable Energy Certificates (SRECs) and may be eligible for specialized programs based in the SREC market. 

Program Description

Sustainable biomass projects are categorized in New Jersey as Class I renewable energy resource under its Renewable Portfolio Standard (RPS). Incentives for biomass projects are available under Biopower program offered as part of Renewable Energy Incentive Program (REIP). Financial incentives for the program are offered through competitive solicitations. 

There is no limit to the system size of the project, however maximum incentive per project is capped at $900,000 or 30% of the project costs, whichever is less. Maximum incentive per entity is capped at $1,375,000- this does not apply to project developers. Any new equipment purchased for enhancing the performance of an existing biomass plant also qualify for incentive equivalent to 30% of the incremental cost of the equipment.

To encourage rapid completion of projects, additional bonus incentive of 10% is provided to projects that are completed within 12 month after the approval date. Projects that take 12-18 months are eligible for 100% of the incentive. Any projects that require extension beyond the 18 month period only obtain 90% of the total approved incentive.

Eligibility

Any sustainable biopower projects that convert biomass into energy that can fuel either fuel cells, micro-turbines, spark ignition engines, and combustion turbines for generating electricity are eligible for the program. Any technology such as anaerobic digestion, gasification, combustion and pyrolysis can be used to convert biomass into energy. Facilities other than landfill gas, biomass powered fuel cell, anaerobic digesters must obtain biomass sustainability determination from the New Jersery Deparment of Environmental Protection (NJDEP). Examples of eligible facilities include

• Digestion of Sewage Sludge

• Landfill Gas Facilities

• Combustion of wood wastes to steam turbine

• Gasification of wood wastes to reciprocating engine

• Gasification or pyrolysis of biosolid wastes to generation equipment

Municipal solid waste incinerators, mass incinerators, sludge incinerators and combustion of adulterated wood are not eligible for the program.

The applicants must demonstrate that energy crop or waste is available on a sustainable basis and the combustion of biomass must pass NJ’s regulatory emission standard.

The New Jersey Clean Energy Program web site provides all application materials, complete funding schedules and information about current incentive levels.