Combined Heat and Power Grant Program

MEA CHP FY19 Grant Program​

CHP Header ​ 
The Maryland Energy Administration (MEA) is pleased to announce the launch of the FY 19 Combined Heat and Power Grant Program. The program is designed to further encourage Combined Heat and Power (CHP) growth in the State. This $4 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, $3.5 Million of the $4 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. 

Application Deadline: 11:59 PM EST, February 15, 2019​

Program Description

The FY19 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.  

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.

New: 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​.

For more information, read ourNotice of Availability​ ​.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, 2020.
  • Projects must be installed and fully commissioned by July 1, 2021.
  • 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; 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.  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​​

Additionally, the Maryland Energy Administration showcases selected projects to demonstrate how MEA energy programs are benefitting 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 ourFrequently Asked Questions​​.pdfFrequently Asked Questions.


Program Timeline

  • ​​July 1, 2018: The program is open for applications
  • February 15, 2019: Deadline for applications to be submitted
  • March 30, 2019: Award notification announcements are expected
  • April 2019: 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 2020: Implementation of CHP System
  • July 1, 2020: Groundbreaking/Materials on site Deadline
  • July 1, 2021: Commissioning Deadline
  • August 1, 2021: 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 2: Verify all supplemental documentation is ready for submission
Step 3: Submit the completed application and all supplemental documentation at the link below.

If you encounter issues with the electronic applications, please contact Rory.Spangler@Maryland.gov​ or 443-694-8007.
 Program Information Documents

Reporting Resources for Existing Grantees


For more information or assistance, please contact CHP Program Manager Garry Aime at 443-694-4097 or garry.aime@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.​