New Jersey: New Jersey Renewable Energy Incentive Program

Note: The New Jersey Clean Energy Program has issued a notice stating that the wind energy portion of this program is temporarily on hold and new applications are not being accepted at this time. The description of the program refers to program terms as they stood in early 2011 prior to the suspension.

Please also note that rebates for photovoltaic (PV) installations are no longer offered under 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. Click here for further details on the individual utility programs.

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.

Currently, eligible technologies include fuel cells, small wind-energy systems and/or sustainable biomass-energy technologies. Systems must have at least a five-year, all-inclusive warranty. Eligible systems should be sized to produce no more than 100% of the historical or expected (if new construction) amount of electricity consumed at a system's site. It is important to note that system capacity limits and rebate amounts (including those for system additions) are calculated on a "per site" basis. In other words, for program purposes multiple systems on the same parcel or located on adjacent or contiguous properties under common ownership are aggregated together as a single system.

In addition, all agricultural, commercial, industrial, and non-profit customers must apply for a receive a Tax Clearance Certificate from the New Jersey Division of Taxation in order to be eligible for financial assistance under this program. The objective of this new requirement is to ensure that all recipients of taxpayer funded support are in full compliance with their state tax obligations. This mandate does not affect single-family residential customers.

Sustainable Biomass and Fuel Cell Systems (including CHP)

These systems are currently eligible for rebates under a two-tiered incentive structure. Systems that incorporate combined heat and power (CHP) are eligible for slightly higher incentives. Rebates for all systems regardless of size are limited to 30% of installed costs, or 40% of installed costs if the system incorporates CHP. The rebate schedule is as follows:

• $2.00 per watt for the first 500 kW, $3.00 per watt with CHP
• $1.00 per watt for the next 500 kW, $2.00 per watt with CHP

Wind Energy Systems (currently suspended)

Wind energy systems receive rebates based on expected performance rather than nameplate capacity. The Expected Performance Based Buydown (EPBB) rebate will be calculated according to the estimated first-year annual energy output, which itself is based on the estimated 50 meter wind speed at the site, the proposed tower height, and the performance curve of the proposed turbine. The per kilowatt-hour ($ per kWh) value of the rebate is determined by the estimated output as follows:

• $3.20 per annual kWh for the first 16,000 kWh of estimated energy production.
• $0.50 per annual kWh for estimated energy production between 16,000 kWh and 1,000,000 kWh.

Wind rebates for residential systems are capped at $51,200 (the upper limit of the first tier of the incentive schedule). The overall cap determined by second tier of the incentive schedule is $543,000 but the incentive is also capped at 120% of the of the estimated system specific performance at a reference speed of 11.4 mph (average annual wind speed of 13.7 mph). A performance calculator tool and a list of eligible wind energy systems are available on the program website.

Wind and Biomass Feasibility Studies

Non-residential wind and biomass projects of 100 kW or larger which are sized in order to be eligible to net meter (i.e., expected energy production should not exceed 100% of historical or expected on-site consumption) are eligible for feasibility study incentives at the following levels:

• Systems size of 100 - 500 kW: 50% of cost up to $25,000
• Systems size of 501 - 1,000 kW: 50% of cost up to $50,000

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