New Jersey Clean Energy Program (NJCEP) Solar Rebates for Residential Projects

Incentive Type: State Rebate Program

Eligible Technologies: Photovoltaics, Wind, Biomass, Fuel Cells

Applicable Sectors: Residential

Rebate: $5.50/watt

Max. Limit: 30% - 70% of system costs

Date Enacted: 1999

Effective Date: 2001

Expiration Date: 2008

New Jersey’s 1999 electricity restructuring legislation provides for investments in energy efficiency and renewable energy through the "Societal Benefits Charge" collected from all electric public utility customers. In March 2001, the NJ Board of Public Utilities approved funding for renewable energy programs, including a customer-sited renewables rebate program administered by the state's utilities.

Eligible technologies include fuel cells, photovoltaic, small wind, or sustainable biomass technologies. There no maximum installation size. However, if the installation size exceeds an applicant's needs, the applicant is not eligible for incentives under this program but can compete for financial incentives through the grid-supply or market development programs. In addition, systems must include at least a 5-year all-inclusive warranty.

Solar electric systems are eligible for incentives which are paid incrementally based on the size of the system installed:

$5.50 per Watt for the first 10 kW of system size

Systems up to 10kW are eligible to receive up to 70% of installed cost. Note that this is an increase from the $5/W rebate with a 60% maximum in effect through 2002.

Wind and sustainable biomass systems are currently eligible for lower incentive levels beginning at $5/W (60% maximum) for systems up to 10 kW. Incentive amounts will decrease over time as the total number of installed systems increases.

See the New Jersey Clean Energy Program Web site for all application materials, complete funding schedule, and current incentive levels.

Through January 31, 2003, projects supported (or incentives reserved) by the NJ Clean Energy Program were as follows:

PV (<10 kW): 71 projects (309 kW total)
PV (>10 kW) 20 projects (3,033 kW total)
Wind (<10 kW): 3 projects (20 kW total)
Wind (>10 kW): 2 project (2,875 kW)
Natural Gas Fuel Cell: 12 projects (2,850 kW total)
Sustainable Biomass: 7 projects (5,164 kW total)

New Jersey Clean Energy Program Pre-Installation Application Form