Solar & Battery Regulation & Incentive Programs

Pay for Performance Program

Program Overview


Category:
Financial Incentive
Program Type:
Rebate Program
Implementing Sector:
State
State:
New Jersey
Eligible Storage Technologies:
Lighting, Chillers, Furnaces, Boilers, Air conditioners, Energy Mgmt. Systems/Building Controls, Motors, Comprehensive Measures/Whole Building
Website:
http://www.njcleanenergy.com/commercial-industrial/programs/pay-performance
Incentive Amount:
Awarded based on completion of three program milestones
Existing Buildings
Incentive 1: $5000-$50,000, based on $0.10 per sq ft, not to exceed 50% of facilities annual energy expenditure; provided after submittal of energy reduction plan
Incentive 2: 25% of the total project cost; after installation of recommended measures
  Base incentive based on 15% savings: $0.09 per kWh saved, $0.90 per Therm saved
  For each % over 15% add: $0.005 per KWh saved, $0.05 per Therm saved
  Maximum Incentive: $0.11 per kWh saved, $1.25 per Therm saved
Incentive 3: Remaining of the performance based incentive amount after completion of Energy Benchmark report.
Incentive cap is 25% of total project cost

New Construction
Minimum Cost Reduction over ASHRAE 90.1-2013
15% - Multifamily
5% - All Other
Incentive by Building Type in relation to ASHRAE 90.1-2013 per Square Foot :
Industrial/High Energy Use Intensity

Incentive 1: Proposed Energy Reduction Plan
  $0.10 for ERP +0 -1.9% above
  $0.12 for ERP +2 – 4.9% above
  $0.14 for ERP +5% or greater
Maximum 1st Incentive $50,000.00
  Pre-Design Bonus: $0.02 per square foot
Maximum Bonus : $10,000.00

Incentive 2: Installation and Commissioning of Measures
  +0 – 1.9%: $1.00
  +2 – 4.9% : $1.20
  +5% or greater : $1.40
Maximum 2nd incentive 75% Measure Incremental Cost

Incentive 3 : Building Performance
  Flat: $.40
Maximum 3rd Incentive 25% Measure Incremental Cost

Commercial and Multifamily
Incentive 1: Proposed Energy Reduction Plan
 $0.08 for ERP +0 -1.9% above
  $0.10 for ERP +2 – 4.9% above
  $0.12 for ERP +5% or greater
Maximum 1st Incentive $50,000
  Pre-Design Bonus: $0.02 per square foot
Maximum Bonus $10,000

Incentive 2: Installation and Commissioning of Measures
  +0 – 1.9%: $0.80
  +2 – 4.9%: $1.00
  +5% or greater: $1.20
Maximum 2nd incentive 75% Measure Incremental Cost

Incentive 3 : Building Performance
Flat: $.35
Maximum 3rd Incentive 25% Measure Incremental Coast
Maximum Incentive:
The incentives are capped at lesser of $1 million per gas and electric account, or 50% of the total project cost.
Eligible System Size:
Existing Buildings: Peak demand greater than 200 kW in any last 12 months for commercial and industrial facilities, and 100 kW for multifamily facilities
New Construction: Greater than 50,000 sq feet
(see below for exemptions)
Installation Requirements:
Must be installed by approved Program Partner
Existing building: Must achieve a minimum 15% source energy reduction target
New construction: Must have an energy cost reduction of 15% from ASHRAE 90.1-2013.
Administrator:
New Jersey Board of Public Utilities, Office of Clean Energy
Applicable Sectors:
Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Institutional
Utility:
Atlantic City Electric Co, Jersey Central Power & Lt Co, Public Service Elec & Gas Co, Rockland Electric Co
Last Updated:
12/02/2016
Funding Source
New Jersey Societal Benefits Charge (public benefits fund)

Eligibility Criteria

EligibilitySectorsTechnologies
$/square foot0.1000
Commercial
Industrial
Local Government
Nonprofit
Schools
State Government
Federal Government
Institutional
Comprehensive Measures/Whole Building
max % of cost50.0000
Commercial
Industrial
Local Government
Nonprofit
Schools
State Government
Federal Government
Institutional
Comprehensive Measures/Whole Building

Summary

NOTE: Applications for the programs must be submitted before June 30, 2017 in order to be eligible for FY 2017 incentives. 

The New Jersey Clean Energy Program (NJCEP) offers the Pay for Performance incentive program for comprehensive energy efficiency for whole-building improvements. The incentives are categorized into Existing Buildings and New construction. The program is available to all commercial and industrial buildings. The program is administered by the NJ Board of Public Utilities.

Eligibility

The program is funded by the State Societal Benefits Charge (SBC), hence it is only available to non-residential retail electric and/or gas service customers of the following New Jersey utilities that collect the SBC: Atlantic City Electric, Jersey Central Power & Light, Rockland Electric Company, New Jersey Natural Gas, Elizabethtown Gas, PSE&G, and South Jersey Gas.  Customers that purchase only natural gas from a participating utility are only eligible to receive incentives for natural gas measures.

In order to qualify for the Existing Buildings program, commercial and industrial buildings must have a peak demand of kilowatt (kW) of at least 200 kW  in any of the most recent last months, multifamily buildings can have a peak demand of 100 kW. 

New commercial, industrial and multifamily buildings must have 50,000 sq ft or more of gross heated/conditioned space and must have targeted 15% energy reduction in order to qualify for the New Commercial Buildings program. Market Manger has the discretion of approving the projects that are less than 10% below the requirement.

Hospitals, public college and universities, non-profits, affordable multifamily housing, and local governmental entities are exempt the 100 kW and 50,000 sq ft requirement.

Program Description

The program requires participants to use an approved Program Partner (see website for a list of approved partners) in order to receive incentives. The Program Partners are qualified energy efficiency technicians who work directly with the program participant to recommend and install energy efficient measures in the buildings.  

Rather than offering specific rebate levels for specific equipment types, the Pay for Performance program calculates the performance incentive (Payments II and III below) as a variable $/kWh, $/therm, or $/sq. ft. incentive based on projected energy savings. Three separate payments exist based on the achievement of program milestones (described below). Incentive amounts are arrived at differently for existing buildings and new construction projects


For Existing Buildings

The incentives are offed in three phases upon completion of each of the program milestones, i) approval of an Energy Reduction Plan, ii) installation of all recommended measures per plan, and iii) completion of post-construction benchmarking report as provided below. 

• Incentive #1 - Submittal of complete energy reduction plan prepared by an approved program partner - Contingent on moving forward, incentives will be between $5,000 and $50,000 based on approximately $.10 per square foot, not to exceed 50% of the facility's annual energy expense.

• Incentive #2 - Installation of recommended measures- Incentives are based on the projected level of electricity and natural gas savings resulting from the installation of comprehensive energy-efficiency measures.

• Incentive #3 - Completion of Post-Construction Benchmarking Report - A completed report verifying energy reductions based on one year of post-implementation results. Incentives for electricity and natural gas savings will be paid based on actual savings, provided that the minimum performance threshold of 15% savings has been achieved.

Maximum incentives are capped at 50% of lesser of the total estimated or actual project costs and up to $1 million per gas and electric account (limited to $2 million per project). There is an also an annual cap of $4 million per entity.

For New Construction or Substantial Renovations

Similar to Existing Buildings program, New Construction program also includes incentives based project milestones.  


Incentive #1 - Submittal and approval of the proposed energy reduction plan prepared by an approved program partner, detailing the proposed building design and its energy cost savings compared to code compliant baseline. Incentives range from $0.08-$0.16 per square foot up to $60,000 and are contingent on moving forward with construction.

• Incentive #2 - Submittal and approval of a as-built energy reduction plan and commissioning report confirming energy efficiency are installed and performing as expected. Incentives range from $0.80-$1.40 per square foot up to 75% of the projects incremental cost.

• Incentive #3 - Submittal of building performance report demonstrating building has achieved ENERGY STAR Certification. Incentives range from $0.35-$0.40 per square foot up to 25% of project's incremental costs

Program participants may not receive incentives for improvements made prior to their enrollment in the program. Incentives are capped at $1 million per electric and gas account per year and $4 million per entity per year. Please see the program website or contact the program administrator for additional information on how this program works.