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 by providing financial incentives for Combined Heat & Power (CHP) installations.

To qualify for a CHP incentive, the customer's facility must be located in New Jersey, and the customer must purchase electricity from the utility grid.

• Participate in the Pay for Performance Existing Buildings Program, following all stated requirements, including the 15% minimum source energy savings threshold through the installation of energy efficiency measures (reductions in kWh and therms associated with the CHP unit cannot contribute to meeting the 15% minimum) or;

• Show proof that the project facility is an ENERGY STAR Building or is eligible for ENERGY STAR certification through Portfolio Manager benchmarking. ENERGY STAR certification is only available for the following types of buildings:

• Bank/Financial Institution
• Courthouse
• Hospital (acute care and children’s)
• Hotel
• House of Worship
• K–12 School
• Medical Office
• Municipal Wastewater Treatment Plant
• Office
• Residence Hall/Dormitory
• Retail Store
• Supermarket
• Warehouse (refrigerated and non-refrigerated)

In cases where the project facility does not fall into one of the above categories, the LEED EB approach will be used to determine eligibility.

Contact Commercial & Industrial program representatives for more information.

To be eligible for CHP incentives, projects must follow one of the paths described below:

• Participate in the Pay for Performance New Construction Program, following all stated requirements, including the 15% minimum performance requirement through the installation of energy efficiency measures (reductions in energy costs associated with the CHP unit cannot contribute to meeting the 15% minimum) or;

• Show proof that the project facility is actively pursuing LEED 2009 certification with a minimum of three points under EA Credit 1: Optimize Energy Performance or;
• Show proof that the project will earn the “Designed to earn the ENERGY STAR” rating through EPA Target Finder. Ratings are only available for certain building types. Please visit the ENERGY STAR website for more information.

The Pay for Performance Applications and Forms pages (Existing Buildings and New Construction) contain all of the materials needed to participate, including the CHP Application Package with instructions and technical worksheets.

Detailed Pay for Performance and CHP Incentive Structure documents are also available for viewing (Existing Buildings and New Construction).