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New Jersey Waste Oil Incentive

New Jersey’s Energy Incentives That May Help You Fund a Waste Oil Heating Solution

Get to Know New Jersey’s Waste Oil Related Incentives


The garden state takes used oil management seriously. Individuals and businesses operating in the state must adhere to federal and state regulations to avoid steep fines and other consequences. In addition to recycling, however, the state allows alternative methods of disposal, including used oil burners for energy recovery. Some energy incentives may even offset the costs of investing in a waste oil burning system.


Get to Know New Jersey’s Used Oil Regulations


Under state laws, all waste oil generators should take steps to avoid mixing used oil with any other substances. Recycling facilities and alternative disposal methods only work with unadulterated used oil. Generators cannot reuse or recycle used oil with water, other chemicals such as antifreeze, or more than 1,000 ppm halogens in the oil. This type of oil is considered hazardous waste and should always go to a facility capable of proper disposal.

Generators should never burn oil in unapproved boilers and heaters, use oil to remedy dust problems, or for any other environmental application. Commercial businesses and individuals should either send used oil to a recycling facility or use an appropriate burning system. Some burners require a special permit to own and operate, while others only require registration.

To store waste oil, generators should use rust-free, non-leaking, watertight containers labeled as “used oil.” The state reserves the right to fine those who fail to label containers or who label containers as “hazardous waste” or “waste oil” inappropriately. If oil does spill from the container, every resident in the state bears an obligation to properly address the situation.

All retail service stations and inspection locations must accept DIYer’s used oil under state law. They can charge a fee, set a two-gallon limit, and refuse to take tainted oil, but they must post a sign indicating the service.


New Jersey’s Clean Energy Program


Used oil management can get confusing quickly. Many small missteps can result in major fines. For businesses interested in cutting down on the number of steps involved in used oil management and in conserving costs, investing in a high-efficiency used oil burning system may make sense. New systems comply with all federal and most state used oil regulations, and they offer automotive centers and other businesses a way to recover energy for free.

To offset the cost of investing in a waste oil burner, many businesses look to the state for support. In New Jersey, the Clean Energy Program may provide incentives for custom energy-efficient projects, such as installing a used oil burning system. To find out if your environmentally-friendly used oil heating system might qualify for the incentive program, consider reaching out to a program representative directly.

Under the terms of the program, eligible projects include planned and unplanned equipment replacements, renovations, and remodeling. Those interested in applying can fill out the forms online. Only current New Jersey Utilities electric and/or gas customers can participate in the program.

A waste oil burning system can keep containers of used oil from sitting around and improve the energy efficiency of a facility. If recycling does not make sense and investing in a better heating and cooling system does, look into a used oil burning system that will keep service areas cool in the summer and warm in the winter.






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