Updated August 6, 2026
The New Jersey Board of Public Utilities reversed course on plans to cut funding for combined heat and power fuel cell programs.
In June, the NE Chapter submitted comments (read original post below) to the BPU after staff recommended reducing the CHP-Fuel Cell program budget.
The Chapter is thrilled that the BPU’s final order for the fiscal year 2027 clean energy program includes $22.732 million for the CHP-FC program, which includes $13.767 million in committed funds carried over from FY26 and $8.965 million in additional FY27 funding.
The FY27 program will support commercial and industrial utility customers across New Jersey with various incentives for new CHP and fuel cell installations, including bonus incentives for renewable fuels and systems with islanding capabilities that enhance grid resilience. The Northeast Chapter appreciates the BPU’s continued commitment to advancing CHP and fuel cell technologies and looks forward to supporting projects that strengthen reliability, resilience, and energy efficiency throughout the state.
Learn more about the final order here.
Original post continues below.
On June 8, 2026, the Northeast Chapter of the CHP Alliance submitted comments to the New Jersey Board of Public Utilities (BPU) regarding staff’s recommendation to reduce funding for the Combined Heat and Power–Fuel Cell (CHP-FC) Program from $19.3 million in FY26 to approximately $9 million in FY27. In our comments, we urged the BPU to restore funding to FY26 levels, emphasizing that the proposed reduction fails to recognize the significant benefits CHP provides to New Jersey ratepayers.
CHP helps to reduce energy costs, alleviate constraints on the increasingly strained PJM electric grid, lower CO₂ emissions, improve energy efficiency, enhance resiliency for critical infrastructure, and support economic development across the state.
We also noted that the BPU has previously acknowledged the value of CHP-FC projects, including their ability to deliver substantial customer savings, reliability benefits, and emissions reductions. At a time when affordability, decarbonization, and access to reliable power are top priorities for New Jersey customers, distributed generation resources such as CHP should receive increased support, not funding cuts.
Read our full comments here