Combined Heat and Power (CHP) Grant Program

The Maryland Energy Administration (MEA) FY22 Combined Heat and Power (CHP) Grant Program provides grants for the installation of qualifying CHP systems at Maryland facilities. Entities in the commercial, industrial, critical infrastructure, institutional and educational, agriculture, hospitality, and local and State government sectors are eligible to apply to this program (see the program Funding Opportunity Announcement (FOA) on the program webpage for more information on eligible entities).Total funding for Fiscal Year 2022 is $3.6 million, with some restrictions based upon utility service territories of the CHP host facilities. Grants are provided under two (2) Areas of Interest (AOIs) as described below.Area of Interest 1: Resilient and Sustainable CHP SystemsCHP systems that are capable of operating during an electric utility grid outage (those with black start and islanding capabilities), as well as CHP systems fueled by renewable sources such as renewable natural gas (RNG) or biomass are eligible to apply under this AOI. Grants are sized based on nameplate generation capacity in the table below. Net Total Project Cost is defined as the total out-of-pocket cost that remains after all other incentives and leveraged funding sources have been deducted from the initial total. CHP System Nameplate Capacity Award Amount Micro-CHP (< 60 kW) 50% of Net Total Project Cost OR $100,000; whichever is lower 61 kW - 500 kW $600 per kW 501 kW - 1,000 kW $550 per kW > 1,000 kW $500 per kW, not to exceed $650,000 total Area of Interest 2: Efficient CHP SystemsCHP systems that are installed primarily to enhance the efficiency of the host facility’s operations and reduce energy expenses are eligible to apply under this AOI. These systems are not required to operate during an electric utility grid outage. Grants are sized based on nameplate generation capacity in the table below. Net Total Project Cost is defined as the total out-of-pocket cost that remains after all other incentives and leveraged funding sources have been deducted from the initial total. CHP System Nameplate Capacity Award Amount Micro-CHP (< 60 kW) 40% of Net Total Project Cost OR $100,000; whichever is lower 61 kW - 500 kW $500 per kW 501 kW - 1,000 kW $450 per kW > 1,000 kW $400 per kW, not to exceed $400,000 total Program RestrictionsMultiple CHP systems installed as part of the same project will be considered one aggregate system under the CHP Grant Program. For example, three (3) 500 kW CHP systems installed a a host facility cannot receive three (3) separate MEA CHP Grants. They would be aggregated as a 1,500 kW system and awarded based on that total capacity.CHP systems that are fueled by coal, fuel oil, or diesel fuel are not eligible for grants under this program. Additionally, systems that do not achieve minimum operating efficiency as specified by the program FOA (available on the program webpage) are not eligible for grants under this program.Please review the program FOA on the MEA CHP webpage for a full list of program rules, requirements, and restrictions, available at https://energy.maryland.gov/business/Pages/MEACHP.aspx.