Like many other states in the country, New Jersey is charging forward with renewable energy initiatives, offering lucrative benefits for those wishing to adopt alternative energy sources to offset their business’s electricity consumption. In New Jersey, solar, landfill gas, biomass CHP/cogeneration, anaerobic digestion and renewable fuel cells are all eligible for state incentive programs.
Solar Energy
When most people think of renewable energy incentives, they think of solar electric systems — also known as photovoltaics or PV. However, unlike Florida, photovoltaic (PV) installations in NJ are not eligible for state incentives like credits or rebates. However, they are eligible for solar renewable energy certificates (SRECs) which pay a market price-driven dividend from the utility while the system is in operation. Recently awarded Governor Christie’s signature, the state legislature has passed a measure that would reenergize the state’s solar industry and potentially increase the value of solar credits, now lingering in the low $100’s. If you’re interested in solar thermal or solar electric for your business, stay tuned! And, keep in mind that, according to the Database of State Incentives for Renewables & Efficiency (DSIRE), all system sizes installed in NJ are eligible, but they must be grid-connected to the distribution system.
While the most popular program is solar, there are plenty of other state incentives for you to consider! There are a few requirements, rules and regulations that renewable energy users must abide by to qualify for the programs. “Generally, systems and components must be new, in compliance with all applicable performance and safety standards, and must carry a minimum five year all inclusive warranty,” says the DSIRE New Jersey page.
Biomass, Fuel Cell and CHP Systems
Biomass and fuel cell systems are eligible for rebates, but if the system that you are planning to install combines both heat and power (CHP), you can get even more money back.
- A biomass or fuel cell system can earn back $2.00 per watt for the first 500 kW. For the next 500kW, users receive $1.00 back per watt. This can total up to quite a bit of rebate money back to the user but rebates are currently capped at 30 percent of the installation costs.
- Biomass and fuel cell systems that include CHP can earn users back $3.00 per watt for the first 500kW and $2.00 per watt for the next 500 kW. For Combined Heat and Power systems, the state incentive increases to cap at 40 percent of installed costs.
Wind Energy Systems
New Jersey has quite a few wind turbines located throughout the state, especially along the coastline. Utility-scale offshore wind projects are in the pipeline but have a long development time. Unfortunately for business owners that would like to add turbines to the roof or property in New Jersey, wind incentives have disappeared. Under previous legislation, owners of wind energy systems received
- rebates based on expected energy output based on factors including turbine size and the average wind speed of a turbine’s location.
- $3.20 per kWh for the first 16,000 kWh and $0.50 from 16,000 kWh until 1,000,000 kWh. Once again, this is based on projected output.
While New Jersey wind incentives are currently suspended, the old numbers are still important as state officials are currently reworking and evaluating the efficacy of prior wind programs to determine if a similar program is advantageous to the state. Bottom line, check out the DSIRE site regularly to see if there are any updates.
Renewable Energy Incentives Leadership
For years, New Jersey has led the East Coast in renewable energy development for both residential and commercial markets. Government officials want to boost the jobs and economy, protect the Garden State’s environment, and they want its residents to enjoy the benefits of renewable energy while saving money in the process. The best way to bridge the gap between the adoption of new, leading edge technology and the price tag, is to offer a continuous and financially-sound mechanism for purchase, installation and maintenance.
If you’re a New Jersey business owner or facility manager, did you install a PV system before the state SREC market became saturated and crashed? Have you considered other renewable energy technologies that are incentivized by the state?
