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 installations. Incentives are available through three paths:

• Commercial & Industrial CHP and Fuel Cells system with installed capacity less than or equal to 1 MW.
• Large scale CHP & Fuel Cell systems with installed capacity greater than 1 MW
• Renewable Energy Biopower systems for technologies that produce electricity using a renewable supply of organic material (biomass)

Link: Board Order - Standby Charges for Distributed Generation Customers