Combined Heat and Power Grant Program

MEA CHP FY20 Grant Program​

CHP Header 
The Maryland Energy Administration (MEA) is pleased to announce the launch of the Fiscal Year 2020 (“FY20”) Combined Heat and Power Grant Program. The program is designed to further encourage Combined Heat and Power (CHP) growth in the State. This $4.1 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).  Note: As part of the PHI/Exelon Merger, up to $3.5 Million of the $4.1 Million program budget is reserved for projects being implemented in PEPCO and Delmarva Power Territories.


Applications will be reviewed on a first come, first served basis. Please review the Notice of Grant Availability in the How to Apply section below for more details on review and eligibility requirements.


Application Deadline:  

11:59 PM EST,

Wednesday, February 12, 2020


***Informational Webinar***

MEA will host two (2) informational webinars which will cover how to submit a successful application with all required information and documents on September 17 and October 3, 2019. Please see the "Informational Webinar" section below for further details and a link to register.

Program Description


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. 

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 eCatalog: Applicants are strongly encouraged to utilize the U.S. Department of Energy’s (“DOE”) CHP eCatalog when considering CHP systems for their facilities. This comprehensive catalog of packaged CHP systems allows for searching and filtering of technically vetted systems based upon the facility’s energy needs and site characteristics. To access the CHP eCatalog, visit the U.S. DOE’s website at https://chp.ecatalog.lbl.gov/.

Note on MICRO-CHP: 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 their utility incentive programs.


For more information, read our Notice of Availbility FY20.pdfNotice of Availability

Project Requirements

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; and
  • Satisfy all applicable regulatory and environmental requirements.

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.


In addition, the Applicant must be in good standing in the State of Maryland. For Certificate of Status information please see the Maryland State Department of Assessments and Taxation webpage. 

Note on showcasing: The Maryland Energy Administration showcases selected projects to demonstrate how MEA energy programs are benefiting Maryland residents and businesses.  If selected for award, please note that the MEA grant agreement will contain participation requirements for project showcasing


For more information, read our FY20 Frequently Asked Questions.pdfFrequently Asked Questions.


Program Timeline


  • 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

How to Apply

Applications are due by 11:59 PM EST, February 15, 2019
Applications should be submitted electronically. Because the grant selection will be determined primarily on a first-come first-served basis, applicants are encou​raged to submit a complete application as soon as possible. 

Step 1: Download and complete the application and supplemental workbook, found below
Step 2: Verify all documentation and attachments are ready for submission
Step 3: Submit the completed application, supplemental workbook, and all supplemental documentation at the link below.

If you encounter issues with the electronic applications, please contact BrandonW.Bowser@Maryland.gov or (443) 306-0304.


Program Information Documents

Informational Webinar


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). Please use the link below to register:




Related Programs


​Applicants looking for additional sources of funding for CHP systems may be eligible for low-interest financing (up to 2.0% APR) through MEA's energy efficiency loan program:

Jane E. Lawton Conservation Loan Program

Applicants may also be interested in the following commercial energy programs for other measures at their facilties:

Commercial, Industrial & Agricultural Grant Program

Data Center Energy Efficiency Program

Commercial Clean Energy Rebate Program 

Clean Energy Communities Low-to-Moderate Income Grant Program




Reporting Resources for Existing Grantees



For more information or assistance, please contact CHP Program Manager, Brandon Bowser, at (443) 306-0304 or BrandonW.Bowser@maryland.gov.

Grants issued by the State of Maryland may be taxable. As the Maryland Energy Administration is unable to give tax advice, any tax-related questions should be directed toward a qualified tax professional.​