Announcing the FY19 Combined Heat & Power Grant

By Rory Spangler, Energy Program Manger

The Maryland Energy Administration (MEA) is pleased to announce the launch of the Fiscal Year 2019 (FY19) Combined Heat and Power Grant Program. The program is designed to further encourage Combined Heat and Power (CHP) growth throughout the State. This $4 Million first come, first served program will target eligible commercial, industrial, institutional, and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government facilities).  

These funds are allocated to three Areas of Interest (AOI) in the following manner:

• AOI 1 – Up to $2.5M initially reserved for cost effective CHP energy efficiency projects in commercial, industrial, and institutional facilities;
• AOI 2– Up to $1.5M initially reserved for energy efficient CHP projects that also increase resiliency in critical infrastructure facilities; and,
• AOI 3– Up to $500,000 initially reserved for projects that leverage biomass or biogas resources as a fuel source.

Funding for this fiscal year’s CHP program includes $3.5 million from the customer investment fund established from the 2016 PHI Holdings and Exelon Corporation merger. As part of the PHI/Exelon Merger, $3.5 Million of the $4 Million program budget is reserved for projects being implemented in PEPCO and Delmarva Power Territories. The remaining $500,000 is reserved for projects that fall outside the PEPCO and Delmarva Power Territories.

NEW THIS YEAR: Funding for Fuel cell technology and non-combustion CHP will be limited to $1,000,000 of the total program budget across all areas of interest.

Individual grants range in size from up to $425/kW to up to $575/kW, based on the size of the CHP system, with a maximum per project cap of $500,000, subject to funding availability.

CHP systems generate electricity and useful thermal energy in a single, integrated system. CHP options combine technologies to maximize energy efficiency and reduce waste. In traditional fossil fuel power plants, two-thirds of the energy used to generate electricity is wasted in the form of heat discharged to the atmosphere as well as through electricity transmission, achieving a combined efficiency of only 33 percent. By combining electricity generation and waste heat capture, CHP systems can operate at levels as high as 80 percent efficiency.

For more on the application materials, minimum requirements and eligibility requirements, please carefully review the Notice of Availability, Frequently Asked Questions, and the MEA CHP FY19 Grant Program application listed on the MEA CHP website. Additional questions can be directed to the Program Manager, Rory Spangler, at Rory.Spangler@Maryland.gov or 443-694-8007.