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Combined Heat and Power (CHP) Grant Program

Grants to Maryland Commercial and Industrial Facilities
to Implement Combined Heat and Power Systems

Agency Type:


Funding Source:

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Maryland Energy Administration (MEA)

Conf. Date:


Deadline Date:

03/01/20 11:59 PM EST


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Grants to Maryland commercial, industrial, and institutional facilities, as well as infrastructure facilities, to assist in the implementation of combined heat and power technologies. Funding is intended to encourage facilities to switch to more cost-effective, energy-efficient biofuel options, such as natural gas, biomass, biogas, and other fossil fuels.

The FY20 MEA CHP grant program will provide grants to encourage the implementation of CHP technologies in eligible commercial, industrial, institutional, agricultural, educational, and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government facilities), and to encourage the implementation of CHP technologies that leverage biogas/biomass as a fuel source in commercial, industrial, institutional, and critical infrastructure facilities. 

Reciprocating engines, turbines, micro turbines, natural gas chillers, fuel cells, and back-pressure steam turbines are eligible CHP technologies, as long as the waste heat is being captured for on-site use. Fuel sources can include natural gas, biomass, biogas, and other fossil fuels that meet State and Federal regulations. 

The following types of new CHP projects are eligible:

  • Energy efficiency-focused CHP projects in commercial, industrial, and institutional facilities;
  • CHP projects in critical infrastructure facilities, as defined by The United States Department of Homeland Security, that increase resiliency;
  • CHP projects in commercial, industrial, institutional and critical infrastructure facilities that leverage biomass or biogas as a fuel source.
  • MICRO-CHP Projects, meaning projects which are 60 KW or less, are eligible for up to 50% of the total project cost, after all other incentives and rebates are applied, with a maximum of $75,000. Micro-CHP Projects must be cost-effective to be eligible for the up to 50% incentive, otherwise, projects will be eligible for incentives at $575 per kw. Projects must be based in Delmarva or Pepco Power Service territories to be eligible and must participate in the utility incentive program.

To ensure geographic diversity, MEA will initially reserve funding for at least one project in each AOI within the rural areas of Maryland. If no eligible CHP applications are submitted from the rural areas of the State within an AOI, MEA will then fund the next eligible project(s) within that AOI.

GrantWatch ID#:

GrantWatch ID#: 182476

Estimated Total Program Funding:


Estimated Size of Grant:

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.

Term of Contract:

Upon execution of grant award through June 2022.

Additional Eligibility Criteria:

Eligible Market Industries:
- Commercial, industrial, institutional, agricultural, and educational facilities (eligible for AOI 1 and AOI 3);
- Critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government facilities) (eligible for AOI 2 and AOI 3).

For the purpose of this program a commercial facility is any non-manufacturing business establishment, including hotels, shopping malls, commercial office buildings, data centers, museums, recreational, or convention centers. An industrial facility is a manufacturing facility that takes raw material and processes it into a finished product. An institutional facility is a private or public college, university, or trade school

For the purpose of this program, MEA will define critical infrastructure facilities as those facilities “so vital to the United States that their incapacitation or destruction would have a debilitating effect on security, national economic security, national public health or safety, or any combination thereof,” based on a definition used by the U.S Department of Homeland Security (DHS)1. A list of the 16 critical infrastructure sectors can be found at

At a minimum CHP projects must:
- ​Be located in Maryland at an eligible facility
- Projects must have materials onsite and official groundbreaking must occur by July 1, 2021.
- Projects must be installed and fully commissioned by July 1, 2022.
- Have an anticipated annual CHP system efficiency of at least 60%, on a Higher Heating Value (HHV) based on the higher heating value - of the fuel, or an eligible non-combustion fuel cell system must meet a minimum system efficiency of 50% based on a higher heating value- of the fuel
- Satisfactorily demonstrate the ability to meet the goals of the CHP Program Area of Interest (“AOI”) for which it is being applied
- For Area of Interest (“AOI” 1: Provide net energy benefits that are at minimum equal to the total cost of the project without incentives
- Satisfy all applicable regulatory and environmental requirements

In addition, the Applicant must be in good standing in the State of Maryland.

A project that only replaces an existing CHP system with a system of the same size is not eligible.

Pre-proposal Conference:

MEA will host two (2) informational webinars on how to complete a successful application package for the CHP Program. The dates and times for these webinars are as follows:

Tuesday, September 17, 2019, 10:00 AM - 11:30 AM
​Thursday, October 3, 2019, 1:30 PM - 3:00 PM​
Both webinars will cover the same information, so participants do not need to attend both (although may do so, if preferred).

To register:

Pre-Application Information:

The application deadline is 11:59 PM EST, Sunday, March 1, 2020.

- August 7, 2019: The program is open for applications
- February 12, 2020: Deadline for applications to be submitted. Awards will be made on a first-come, first-served basis after technical, financial, and feasibility evaluation.
- April 30, 2020: Deadline for all awarded Grants to be executed between Grantee and MEA
- Upon execution of grant award through June 2022: Implementation of CHP System
- July 1, 2021: Groundbreaking/Materials on-site Deadline
- July 1, 2022: Commissioning Deadline
- August 1, 2022: Final invoices are due to MEA

Applications will be reviewed on a first come, first served basis.

To be considered for grant award, an application must be complete, accurate, and signed by the business owner or authorized representative of the business owner. Applications which are submitted incomplete or without required documentation will be given 30 calendar days to provide the missing information in order to retain their place in the queue. Failure to submit missing information within this timeframe will result in rejection from consideration. Applications rejected for this reason are welcome to reapply before the application deadline but will be treated as new.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply online:

For questions, contact:
Brandon Bowser, CHP Program Manager
(443) 306-0304

Maryland Energy Administration
1800 Washington Blvd., Suite 755
Baltimore, MD 21230

URL for Full Text (RFP):

Geographic Focus:

USA: Maryland

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