Expanded financial support for energy efficient projects

by: Jason Springer

Mon Jun 29, 2009 at 03:15:00 PM EDT

This looks like a forward thinking program:

Businesses that invest in energy-efficient projects; combined heat and power, or cogeneration, production facilities; select renewable energy sources; or efficient electric-generation facilities will now have access to interest-free loans and grants of up to $5 million, according to a new program the state's Economic Development Authority launched today.
Commercial, industrial and institutional customers would get 10-year loan terms under the Clean Energy Solutions Capital Investment Loan/Grant program to fund the purchase of fixed assets, including real estate or equipment, according to EDA.
Caren S. Franzini, EDA chief executive, said "More new resources will be unveiled over the next several months as part of the state's clean energy solutions portfolio," in partnership with the state's Board of Public Utilities and the Department of Environmental Protection.
The loans and grants offered through new program are capitalized through the Regional Greenhouse Gas Initiative's Global Warming Solutions Fund, in partnership with Department of Environmental Protection, according to EDA.

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Jason Springer :: Expanded financial support for energy efficient projects

Here is some reaction and an example of how it would work from a supplier's perspective, who clearly has a dog in the fight, but provides some good information:

"This is fabulous; this will stimulate the construction of new CHP projects in New Jersey," said Scott Yappen, business development manager at Foley Power Systems, in Piscataway, a dealer of the Caterpillar brand of electric power generation equipment.
Yappen said the new program specifies that CHP, or combined heat and power projects, are eligible for a maximum of 50 percent funding from the state, and used an illustration to explain how it will work:
A typical CHP project of 4,000 kilowatts could cost $8 million, or $2,000 per kilowatt hour, Yappen said. That project is already eligible for a grant of $450 a kilowatt hour, or $1.8 million, under a so-called "Retail Margin Fund" program that BPU and Gov. Jon S. Corzine announced in March, he added. That leaves room for another $2.2 million in state funding, which could be accessed through interest-free loans from the new program announced today, he said.

It's good to see the state moving forward on their plan and providing incentives for businesses to help manage some of the costs associated with the transition. The article also provided a teaser of more to come saying that businesses interested in clean-energy solutions opportunities can visit EDA's Web site in the coming weeks for more information on upcoming products.