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New Jersey

New Jersey

Incentives/Policies for Renewables & Efficiency

Printable Version
Clean Energy Solutions Energy Efficiency Revolving Loan Fund   

Last DSIRE Review: 07/24/2012
Program Overview:
State: New Jersey
Incentive Type: State Loan Program
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building, Custom/Others pending approval
Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Fed. Government, Institutional
Amount:Varies by project (minimum loan of $250,000)
Maximum Incentive:Maximum Loan: $2.5 million or 80% project costs (total state funding may not exceed 100% of project costs)
Terms:Interest rate varies by amortization period with terms of 3 years (2%), 5 years (3%), and 7 years (4%) available; loans structured as interest only for up to 12 months based on cash flow of the project.
Funding Source:New Jersey Societal Benefits Charge (public benefits fund)
Program Budget:$17.6 million (total 2012 funding)
Start Date:07/18/2011
Web Site: http://www.njeda.com/web/Aspx_pg/Templates/Npic_Text.aspx?Doc_Id=...
Summary:

Under the Clean Energy Solutions Energy Efficiency Revolving Loan Fund (EERLF), the New Jersey Economic Development Authority (EDA) offers loans to commercial, institutional, and industrial entities to finance improvements that receive support under the New Jersey Office of Clean Energy (OCE) Pay for Performance energy efficiency incentive program, the Large Energy Users Pilot Program, and Small CHP and Fuel Cells Incentive Program. These programs collectively offer a wide variety of incentives for energy efficiency and CHP in commercial, industrial and institutional buildings. Projects should create or maintain jobs in New Jersey. Loan amounts range from $250,000 to $2.5 million, limited to 80% of the cost of the project. The collective incentives received by a participant, which includes incentives through other programs, may not exceed 100% of the cost of the project. Interest rates under the program vary from 2% - 4% according to the amortization period of the loan (3, 5, or, 7 years).

In order to qualify for a loan under this program, applicants must first be accepted into the respective incentive program. For instance, Pay for Performance participants must receive an approved Energy Reduction Plan prior to submitting a loan application. It is important to note that while multi-family housing projects are eligible for incentives under the Pay for Performance program, they are not eligible for loans from the EERLF. Both new construction and existing buildings are eligible for loans from the EERLF. Eligibility is likewise limited to customers that pay the Societal Benefits Charge (SBC), which funds the incentive programs and the EERLF. The loan program itself also has additional requirements, such as a minimum (1.1:1) debt service coverage ratio and personal guarantees from entities with more than 10% ownership in a project.

For further information on the eligibility requirements for the linked incentive programs and the EERLF, please see the EDA loan program web site listed above.


 
Contact:
  Program Information - Clean Energy Solutions Energy Efficiency Revolving Loan Fund
New Jersey Economic Development Authority
36 West State Street
P.O. Box 990
Trenton, NJ 08625
Phone: (866) 534-7789
E-Mail: EERLF@njeda.com
Web Site: http://www.njeda.com/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.