New Jersey Renewable Energy Incentive Program (Sustainable Biopower) (New Jersey)

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Last modified on January 5, 2015.

Financial Incentive Program

Place New Jersey

Name New Jersey Renewable Energy Incentive Program (Sustainable Biopower)
Incentive Type State Rebate Program
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Multi-Family Residential, Institutional
Eligible Technologies Landfill Gas, Biomass, CHP/Cogeneration, Anaerobic Digestion, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 750,000 or 30% of the cost per project, which ever is less

Eligible System Size No maximum, but incentives are limited

Equipment Requirements Biomass source should be sustainable and combustion must pass NJ emission standard
Start Date March 2001 (for rebate program)

Funding Source New Jersey Societal Benefits Charge (Public Benefits Fund)

Installation Requirements Installation must comply with all federal, state and local codes; must meet detailed siting criteria specified in program guidelines; new construction must be located in a Smart Growth region.

Maximum Incentive 750,000 or 30% of the cost per project; 1,125,000 per entity; Projects completed within 12 months get additional 10% bonus incentive

Ownership of Renewable Energy Credits Not specified

Program Budget $17.7 million (FY2015)

Program Administrator New Jersey Board of Public Utilities, Office of Clean Energy
Date added to DSIRE 2001-06-12
Last DSIRE Review 2014-10-03

References DSIRE[1]


NOTE: The Biopower program is no longer accepting new applications for FY2014; next round of solicitations will be available on FY2015. The Energy storage program is also under development, and will be available in FY2015.

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. The program is currently managed by Honeywell under supervision of NJ BPU.

Currently, incentives are only available for sustainable biomass energy technologies. Energy Storage portion of the program is currently under development, and will be open for solicitations on FY2015.

The wind energy portion of the program has been on hold and is not accepting any new applications. The rebates for the photovoltaic (PV) installations are no longer offered through 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.

Program Description

Sustainable biomass projects are categorized in New Jersey as Class I renewable energy resource under its Renewable Portfolio Standard (RPS). Incentives for biomass projects are available under Biopower program offered as part of Renewable Energy Incentive Program (REIP). Financial incentives for the program are offered through competitive solicitations.

There is no limit to the system size of the project, however maximum incentive per project is capped at $750,000 or 30% of the project costs, whichever is less. Maximum incentive per entity is capped at $1,125,000- this does not apply to project developers. Any new equipment purchased for enhancing the performance of an existing biomass plant also qualify for the incentive.

To encourage rapid completion of projects, additional bonus incentive of 10% is provided to projects that are completed within 12 month after the approval date. Projects that take 12-18 months are eligible for 100% of the incentive. Any projects that require extension beyond the 18 month period only obtain 90% of the total approved incentive.


Any sustainable biopower projects that convert biomass into energy that can fuel either fuel cells, micro-turbines, spark ignition engines, and combustion turbines for generating electricity are eligible for the program. Any technology such as anaerobic digestion, gasification, combustion and pyrolysis can be used to convert biomass into energy. Examples of eligible facilities include

  • Digestion of Sewage Sludge
  • Landfill Gas Facilities
  • Combustion of wood wastes to steam turbine
  • Gasification of wood wastes to reciprocating engine
  • Gasification or pyrolysis of biosolid wastes to generation equipment

Municipal solid waste incinerators, mass incinerators, sludge incinerators and combustion of adulterated wood are not eligible for the program.

The applicants must demonstrate that energy crop or waste is available on a sustainable basis and the combustion of biomass must pass NJ’s regulatory emission standard.

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

Incentive Contact

Contact Name Public Information - Renewable Energy Program
Department New Jersey Board of Public Utilities
Division Office of Clean Energy
Address c/o Conservation Services Group
Address 2 75 Lincoln Highway
Place Iselin, New Jersey
Zip/Postal Code 08830
Phone (866) 657-6278


Authorities (Please contact the if there are any file problems.)

Authority 1: N.J. Stat. § 48:3-60

Date Enacted 1999

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"