Small Scale CHP and Fuel Cell Incentive Program

November 18, 2022


 Combined Heat & Power

One of the goals of the State of New Jersey is to enhance energy efficiency through on-site power generation with recovery and productive use of waste heat, and to reduce existing and new demands to the electric power grid. The Board of Public Utilities seeks to accomplish this goal by providing generous financial incentives for Combined Heat & Power (CHP) and Fuel Cell (FC) installations.


Eligible CHP or Waste Heat to Power (WHP) projects must achieve an annual system efficiency of at least 60% (Higher Heating Value - HHV), based on total energy input and total utilized energy output. Mechanical energy may be included in the efficiency evaluation.

Eligible Fuel Cell (FC) systems must achieve an annual electric system efficiency of at least 40% (HHV) based on Net Useful Electric Power plus Net Useful Thermal Production (if any) divided by the Total Fuel Input at HHV.

Please see the Application Form or Program Guide for full list of eligibility requirements.

Application Process

New application submissions must be emailed to Hard copy submissions will not be accepted. A copy of the Application can be downloaded from the link below and includes comprehensive information on project eligibility, submittal instructions, and program terms and conditions.

Any questions may be emailed to Note: If you have submitted a question or application to this email address and have not received a response within five business days, please contact our office at 732-855-0033.

Applications will be reviewed for completeness for all program requirements and incomplete applications will be removed from the application queue. Applicants with incomplete applications will be notified of the deficiencies and given the opportunity to remedy the deficiencies and submit a revised application. Revised applications will be inserted at the end of the application queue. 

The NJBPU requires that customer-generators have interconnection agreements in place with their EDCs. These agreements govern connection to the electric grid and specify the terms and conditions, technical requirements, and safety and testing requirements needed. Utility contact information and utility specific website pages with forms are available for each of the NJ BPU regulated electric utilities.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New Jersey
Incentive Type: Grant Program
Web Site:
Administrator: TRC Solutions
Start Date:
Eligible Renewable/Other Technologies:
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Microturbines
Incentive Amount: Varies by system type and size. Incentive design includes:
Capacity based per KW incentive
Maximum Incentive: Varies by system type,
Incentive limited to 40% of the total project cost
Installation Requirements: Must be stationary.
Must be installed on the customer side of the meter.
Must bedesigned to serve no more than 100% of on-site electric load


This program has 1 incentives
Technologies: Combined Heat & Power, Fuel Cells using Non-Renewable Fuels
Sectors: Commercial, Industrial
Parameters: The incentive has a minimum of 40.00 % of cost


Name: Combined Heat & Power Program
Phone: (732) 855-0033

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.