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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)

Deadline Date:

02/15/18 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 FY18 MEA CHP grant program will provide grants to encourage the implementation of CHP technologies in eligible commercial, industrial, institutional, 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.

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:

- Successful applicants must be able to enter into a Grant Agreement with MEA by no later than May 10, 2018.
- Each CHP project selected must have material onsite and an official groundbreaking ceremony by July 1, 2019.
- Each CHP project selected must be fully commissioned by July 1, 2020.

Additional Eligibility Criteria:

Commercial, industrial, institutional, and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government facilities are eligible to apply.

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, each proposed project must:
- Be located in Maryland;
- Meet all program requirements;
- Have an anticipated annual CHP system efficiency of at least 60%, on a Higher Heating Value (HHV) basis;
- For AOI 1, be shown in the feasibility study to be cost effective which means that the project’s lifetime net energy benefits are at least equal to the cost of the project; and
- Satisfy all applicable regulatory and environmental requirements.

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

Projects submitted under AOI II must be able to document to MEA that the facility where the CHP system is going to be installed meets the definition of critical infrastructure being used for this Program.

Multiple CHP systems installed within the same facility, as well as campuses consisting of multiple affiliated buildings in one geographical location, will be considered one project for consideration of eligibility under this Program.

- A project is not eligible if an agreement has been signed to order materials or to begin construction of the respective CHP system prior to the execution of a Grant Agreement under the MEA CHP program.
- MEA will not disburse grant funds to a project that starts construction prior to the effective date of the applicant’s Grant agreement with MEA.

Pre-Application Information:

Applications will be accepted on a first come/first served basis through February 15, 2018, or until funding has been expended. However, 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.

MEA will make the grant funds available to the facility owner (or owner's representative) in two installments: Up to 30% as a ground breaking incentive after MEA staff has verified that the official ground breaking has commenced and materials are onsite. MEA will disburse the remaining grant award after verification of final system commissioning.

- August 18, 2017: The program is open for applications
- February 15, 2018: Deadline for applications to be submitted
- March 2018: Award notification announcements are expected
- April 2018: Target timing for Grant Agreements to be executed (Grantees may only commence work after a Grant Agreement has been fully executed with MEA)
- Upon execution of grant award through December 2019: Implementation of CHP System
- July 1, 2019: Groundbreaking/Materials on site Deadline
- July 1, 2020: Commissioning Deadline
- August 1, 2020: Final invoices are due to MEA​​

Contact Information:

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

Apply online:

Rory Spangler, CHP Program Manager

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

URL for Full Text (RFP):

Geographic Focus:

USA: Maryland