Good news for industrial compressed air users in New Jersey! Jersey Central Power & Light (JCP&L) has energy incentives available to offset costs for energy-saving improvements to your compressed air system. For 2025, JCP&L has set the value of Custom Incentives at $0.30 per kWh saved! Even better? JCP&L’s Energy Efficiency Programs also provide access to low- or no-cost financing options through the National Energy Incentive Fund, with 0% commercial financing available for qualified JCP&L customers.
The Energy Solutions for Business Program is available to commercial, industrial, institutional, nonprofit and public sector facilities that receive electric service from JCP&L. In many cases, program rebates and financing can cover 100% of project costs for qualifying energy improvements. Read on for all the details.
About JCP&L Energy Solutions for Business
Jersey Central Power & Light, a subsidiary of FirstEnergy Corp., provides electric service to more than one million business and residential customers in central and northern New Jersey, with a service area encompassing 13 counties. They offer a variety of energy efficiency incentive programs tailored to business and industrial customers to help them reduce energy consumption, lower operating costs and improve overall energy efficiency. Compressed air projects fall under JCP&L’s custom energy incentives program.
Why does your energy company want you to use less energy?
Energy companies offer rebates and incentives for energy-saving improvements as part of a comprehensive strategy to manage energy demand, comply with regulatory requirements, promote environmental sustainability, enhance grid reliability, and support economic development. These programs also help lower operational costs, reduce greenhouse gas emissions, and enhance customer satisfaction by making energy-efficient technologies more accessible and affordable. Manufacturers and other large energy users provide the greatest opportunity for energy companies to reduce the overall load on the power grid and avoid big swings in energy demand.
Because compressed air is often one of the biggest single energy-using applications for manufacturers, it represents a significant opportunity for energy savings. Inefficiencies in compressed air systems can add thousands of dollars to the average manufacturer’s energy bill and add to the strain on the power grid.
Who is eligible for energy incentives through the JCP&L Energy Solutions for Business Program?
The JCP&L Energy Solutions for Business Program is open to commercial, industrial, institutional and government customers. This includes businesses of all sizes, nonprofit organizations and public sector facilities like schools and municipal buildings.
To qualify, you must:
- Be a current JCP&L electric service customer
- Complete eligible energy upgrades at a facility powered by JCP&L
Program requirements and eligibility details may vary. For the most up-to-date information, check with JCP&L directly or visit their website. Not sure where to start? Fluid-Aire Dynamics is a Program Ally and can help you navigate the process from start to finish.
About JCP&L Custom Incentives
Custom incentives from JCP&L can be applied to projects not covered under their prescriptive incentive programs. All compressed air projects fall under the JCP&L Custom Incentives program. Unlike prescriptive incentives, which provide set rebates for projects such as lighting and HVAC upgrades, custom incentives are calculated based on the kilowatt hours (kWh) saved by the project.
For 2025, JCP&L has set the Custom Incentive rebate value at $0.30 per kWh saved, an 87% increase from 2023 levels. That makes the program especially attractive for industrial and commercial customers. For example, if a company replaced a fixed-speed air compressor with a variable-speed drive (VSD) compressor that saves 30,000 kilowatt hours of electricity annually, they could qualify for rebates of up to $9,000 toward the cost of their project.
Custom incentives can cover up to 75% of the total project costs or $0.30 per kWh saved, whichever is less. Financing may be available for remaining project costs. Projects must be completed by a qualified JCP&L Program Ally such as Fluid-Aire Dynamics. Custom projects must be pre-approved by JCP&L prior to equipment being purchased, ordered or installed.
See the JCP&L Commercial and Industrial Incentive Guide for complete program rules.
How it Works
The JCP&L Custom Incentive Program provides a great deal of flexibility for companies, enabling them to earn performance-based incentives by optimizing plant performance or installing energy-saving equipment upgrades. Here’s how it works.
- Applicants must receive pre-approval from JCP&L before starting the project. Applications are submitted online through the JCP&L Application Portal.
- Energy modeling must be completed as part of the application with an estimate of the kWh savings the project will produce. For compressed air projects, this usually requires collection of baseline data (for example, completing a 1–2 week data logging study). Then, potential energy savings must be calculated. Fluid-Aire Dynamics can help with this step.
- Applications are reviewed on a first-come, first-serve basis. Some projects may require pre-inspection by JCP&L prior to approval.
- When the project is approved, JCP&L will send an Incentive Offer detailing the total dollar amount of the incentive. The Incentive Offer must be signed and returned within 30 days. Once the Incentive Offer is signed, project work may begin.
- Projects must be installed and operational within 90 days of the Incentive Offer. (Extensions may be available in some cases.)
- When the project is complete, project completion paperwork must be submitted. Some projects may require post-inspection by JCP&L.
- JCP&L completes the final review of the completed project. Incentives may be subject to change based on the final scope of work. Additional data logging is not required.
- Incentive checks are typically issued within two weeks of project completion. The check may be sent to the client company or directly to the Program Ally completing the work to offset project costs.
Eligible Compressed Air Projects
The JCP&L Custom Incentive program covers a wide range of compressed air projects and upgrades. It excludes maintenance and repair projects, including leak repair.
Potential compressed air projects may include:
- Upgrading from a fixed-speed air compressor to a VSD air compressor
- Upgrading to a high-efficiency or VSD dryer
- Installing zero-loss condensate drains, high-efficiency air nozzles, or other energy-saving improvements
- Adding compressed air storage
0% Financing from JCP&L and NEIF
In addition to rebates, JCP&L customers may qualify for 0% financing for energy efficiency projects through the National Energy Improvement Fund (NEIF). Projects must be completed by a NEIF-approved contractor like Fluid-Aire Dynamics. Financing is available in three- or five-year terms for eligible projects ranging from $2,500 to $250,000. Payments are made directly through your JCP&L electric bill using on-bill repayment, so there’s no separate loan to manage.
Getting Started with Energy Incentives for Compressed Air Systems
Fluid-Aire Dynamics is a JCP&L Program Ally! We make it easy to qualify for compressed air energy incentives through JCP&L. We can even fill out the paperwork for you and provide all the required documentation to make participation as easy as possible.
We can:
- Conduct compressed air energy audits and data logging studies
- Identify your greatest opportunities for energy savings and incentives
- Install qualifying equipment and upgrades
Contact us to learn how we can help you improve the energy efficiency of your compressed air system. The sooner you get started, the sooner you can start saving money on your energy bill!
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