Combined Heat and Power (CHP) Grant Program

Maryland CHP grant program provides grants for construction of new Combined Heat and Power (CHP) systems in industrial and critical infrastructure facilities in Maryland. Applications for the funding are due by February 15, 2018. Total funding of $5.5 million is available for the 2017 program year.

Eligibility

To be eligible the project must be located in Maryland, must meet system efficiency of at least 60%, and must meet all regulatory and environmental requirements. CHP projects for the industries must be focused on energy efficiency. CHP facilities for critical infrastructures should be designed to increase energy resiliency of facilities. Such critical infrastructures include healthcare, wastewater treatment facilities, and essential state and local government facilities. 

Various CHP technologies, including reciprocating engines, turbines, microturbines, fuel cells, and back-pressure steam turbines are eligible provided that the waste heat is being captured for on-site use. Systems can be fueled through natural gas, biomass, biogas, and other fossil fuels that meet state and federal regulations. 

Program Description

The incentives range from $425/kW to $575/kW per project, based on the size of the system and funding availability. There is no limit on the maximum size of the system, but the maximum grant available per project is capped at $500,000. The capacity incentives are given in the table below: