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Large Energy Users

The Large Energy Users Program is designed to promote self-investment in energy efficiency and combined heat and power/fuel cell projects with incentives up to $4 million for eligible projects in the states' largest commercial and industrial facilities.

Eligibility and Pre-Qualification 

  • To qualify, eligible entities must have incurred at least $5,000,000 in total annual energy costs (on a pre-sales tax basis, aggregate of all buildings/sites) between July 1, 2019 and June 30, 2020 as billed by NJ Utilities and any applicable third-party suppliers associated with those accounts.
    • NJ Utilities refer to the regulated electric and/or gas utilities in the State of New Jersey. They are: Atlantic City Electric, Jersey Central Power &Light, Rockland Electric Company, New Jersey Natural Gas, Elizabethtown Gas, PSE&G, and South Jersey Gas.
    • Applicant’s accounts must be commercially-billed and pay the Societal Benefits Charge (SBC).
    • Eligible annual costs include standard costs associated with electric and/or gas delivery and supply (e.g., generation, transmission, distribution, Societal Benefit Charges, etc.) and not those that are unique to the customer (e.g., energy management charges).
  • Entities will be able submit enrollment qualifications for participation on a first-come, first-served basis. Entity shall be defined as (1) Public: having distinct and separate budgetary authority; (2) Public Schools: having distinct and separate budgetary authority; (3) Private: Non-residential companies including all related subsidiaries and affiliates regardless of separate EIN numbers or locations within New Jersey. Consistent with DOCKET NO. EOO7030203.
  • The total FY21 NJCEP contribution is calculated as 3% of total energy costs [i.e. NJCEP Contribution FY20 = Total Annual Energy Costs * 0.03.
  • In order to be considered for incentives, the average billed peak demand of all facilities submitted in the Draft Energy Efficiency Plan (DEEP) or Final Energy Efficiency Plan (FEEP) must meet or exceed 400 kW and/or 4,000 DTh.
    • Example:  Entity submits DEEP/FEEP for two buildings. Building one has an annual billed peak demand of 200 kW, building two has an annual billed peak demand of 600kW. Per the above guideline, both buildings would be considered for incentives as the average of the two is equal to 400kW.
    • For campus facilities, the 400 kW or 4000 DTh threshold shall be met on a campus-wide level (i.e. total demand of campus). Any number of buildings may be included in the Energy Efficiency Plan.
  • Once qualified, entities will be approved to submit their Draft Energy Efficiency Plan (DEEP) for fund reservation or the Final Energy Efficiency Plan (FEEP) for incentive commitment.

Optional: Contribution Banking Capability

Entities have the option of applying to bank two consecutive years of their total fiscal year NJCEP contributions in order to increase one of the ways their maximum incentive per entity is calculated, i.e., the on calculated as 90% of NJCEP fund contributions. In order to apply to exercise that option, entities
       (i) cannot have been awarded their maximum incentive commitment in the fiscal year 2019 LEU program and
       (ii) must submit fiscal year 2019 monthly utility summaries (July 1, 2018 through June 30, 2019) in addition to the fiscal year 2020 summaries. If these conditions are met, the maximum incentive can be calculated by combining the fiscal year 2020 maximum with the un-awarded portion of the fiscal year 2019 maximum. For the avoidance of doubt, banking of contributions to meet the minimum total annual energy cost of $5,000,000 is not permitted.

Incentive Specifications

Incentives for the FY21 program to be distributed based on the specifications below. The maximum incentive per entity is the lesser of:

  • $4 million
  • 75% of total project(s) cost
  • 90% of total NJCEP fund contribution in previous year
  • $0.33 per projected kWh saved; $3.75 per projected Therm saved annually

Application Forms and Other Information

Questions may be submitted to LEUP@NJCleanEnergy.com


Program Literature

Applications and Brochures - Download Program Materials

Find a Trade Ally

Find a Trade Ally

Success Stories


Clean Energy Learning Center


Local Govt and Schools

Local Government and Schools

Subscribe to eNewsletter

Newsletter

Follow Us: Become a Facebook Fan!Follow us on Twitter!


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