Grants and Low Interest Loans Available for Energy Efficiency Projects for Large Energy Users
February 21, 2012
The New Jersey Board of Public Utilities recently announced its Large Energy Users Pilot program, which is designed to promote self investment in energy efficiency projects with low interest loans and grants of up to $1,000,000 for eligible projects in the state’s largest commercial and industrial facilities.
Eligible entities must have paid a minimum of $300,000 into the New Jersey Clean Energy Program (“NJCEP”) in calendar year 2011 ($0.0169 per Therm + $0.002346 per kWh). The NJCEP contribution shall be an aggregate of all utility accounts held by the applicant and qualifying entities will be ranked by the amount of contribution to the NJCEP in 2011. Initial qualifiers will be invited to submit a draft energy efficiency plan. Multiple facilities owned by the same entity may be included in the draft energy efficiency plan; however, all buildings in plan must have an average billed peak demand of at least 400 kWh and/or 4,000 DTh.
What Incentives Are Available?
A total of $28,000,000 has been reserved for this program. The maximum incentive will be the lesser of (i) $1,000,000, (ii) 75% of total project costs, (iii) 90% of total NJCEP fund contribution in the previous year, or (iv) $0.33 per projected kWh saved plus $3.75 per projected Therm saved annually.
In addition, program participants will be eligible to receive a loan from the New Jersey Economic Development Authority’s Energy Efficiency Revolving Loan Fund. Loans will be in amounts between $250,000 and $2,500,000 and will have an interest rate between 2% and 4%, based on the term of the loan.
What Projects Are Eligible?
Most energy efficiency projects that have not yet commenced are eligible for incentives. Incentives shall only be used for implementation of energy conservation measures approved by the NJCEP. Projects installed or currently under construction will not qualify. New construction, major rehabilitation and renewable energy projects, as well as maintenance energy savings plans, are not eligible for incentives.
How Do I Begin?
The first step to qualification is the submission of a preliminary application, which will be used to qualify and rank each applicant. The preliminary application must be filed with the NJCEP by 5pm Eastern time on March 28, 2012.
If you are a large energy user and are planning or considering an energy efficiency project, significant incentives may be available to you through the 2012 Large Energy Users Pilot Program. An energy efficiency plan is not necessary to file the initial application, but you must act quickly to be eligible.
¦ ¦ ¦
For more information, please contact: