Pay for Performance Incentive

If you have inefficient lighting, HVAC, or other operational equipment, you may be eligible to receive surprisingly large incentives to upgrade to high efficiency equipment through New Jersey’s Clean Energy Program. Pay for Performance is an incentive offered by the State of New Jersey’s Clean Energy Program to relatively large commercial and industrial facilities. A qualifying facility must have peak demand above 100kW over the preceding 12 months, or operate a boiler than has an input of more than 500,000 BTU. Exceptions are granted to hospitals, public colleges and universities, 501(c)(3) non-profits, affordable multifamily housing, and local governmental entities. If you do not fall into one of the preceding 5 groups, and you have boilers below 500,000 BTU, there’s a different incentive program for you named Direct Install

The Pay for Performance incentive program takes a comprehensive, whole-building approach to saving energy and provides the facility owner with incentives that are directly linked to the savings achieved through energy efficiency measures. The program relies on a network on program partners who contract directly with the facility owner to provide technical services. The program partner develops an energy reduction plan and works with other contracted parties as needed to implement the project.

The energy reduction plan must define a comprehensive package of measures capable of reducing the existing energy consumption of your building by 15% or more. Exceptions to the 15% threshold requirement may be made for certain industrial, manufacturing, water treatment and datacenter building types whose annual energy consumption is heavily weighted on process loads.

Pay for Performance incentives are awarded upon the satisfactory completion of three program milestones:

  • 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.

American Boiler Company has worked with an approved program partner to complete the requirements of the Pay for Performance incentive program. In fact, a recently completed projected will receive over $500,000 in incentives to offset the cost of a new boiler plant. See the Pavilion Apartments case study for more information, or give us a call at (973) 923-1999 to learn more about the Pay for Performance Program.