The Combined Heat and Power Incentives Program is offered to Maryland commercial, industrial, governmental and institutional customers of Potomac Edison for the design, installation and production of qualified Combined Heat and Power (CHP) projects.
Eligible CHP projects must meet the following requirements:
- Generators will be driven by turbines or internal combustion engines coupled to the generator where waste heat is used to support the customer’s process.
- The thermal output must be used within the customer’s process and/or building systems. The design of the system shall take into consideration the application of a technology (For example, absorption chillers) that will use the thermal output to further reduce the customer’s electric load.
- The CHP system must have a designed operating efficiency of at least 65 percent (relationship of useful electric and thermal output versus the fuel input). The customer must install the required metering to support the measurement and verification process for the project (for example, to assess electric energy output and annual performance).
- Generators will be fueled by natural gas or biogas.
- The full CHP electric energy generated is intended solely for on-site use by the customer and shall not exceed the customer’s on-site average electric energy needs.
- Unless otherwise permitted under Potomac Edison’s tariff, the design of the system shall be such that the generation equipment is controlled to meet the on-site energy requirements, thus providing no hourly energy export under normal operating conditions.
- All installations must be determined to be cost-effective using EmPOWER guidelines. Contact a program representative for assistance.
- All installations must meet all appropriate environmental regulations, and the owner must attest that the facility is in compliance with all local, state and federal regulations.
All Combined Heat and Power Incentives Program applications received by the Program Administrator require pre-approval before the purchase and installation of equipment.
To qualify for incentives through the Combined Heat and Power Incentives Program, equipment must have been purchased after January 1, 2015, and after receipt of a formal pre-approval letter from the Program Administrator. All installations must be installed and operational by December 31, 2017.
- Design incentive: $75 per kW
- Installation incentive: $275 per kW for projects under 250 kW and $175 per kW for projects 250 kW and over.
- Production incentive: 7¢ per kWh for 18 months; three payments following the review of metering data at the end of the sixth, 12th and 18th months following installation.
Design and installation incentives are capped at $1.25 million. Production incentives are capped at $1.25 million.
How Do I Apply For Incentives?
Step 1 – The participant should complete and submit a Combined Heat and Power Incentive application online and upload required documents through the application portal. The following documents are required for a pre-approval:
- W-9 tax form for the incentive payee
- Combined Heat and Power feasibility study that includes:
- Project overview outlining the facility’s existing annual electrical and gas usage (please include site details such as the primary function of the facility, hours of operation, etc.)
- System summary for the proposed system that details the CHP technology type (e.g., turbine, engine, etc.), generation capacity, operating schedule, make and model, and waste heat end use.
- Completed Total Resource Cost Test (TRC) calculator
- Manufacturers’ specification (cut) sheets for the proposed CHP equipment.
- Copy of utility bill to conﬁrm account number and service address. If desired, the participant may obscure all cost and rate related information.
Step 2 – The Program administrator will notify the applicant via email when the review is complete and funds have been reserved.
Step 3 – The applicant will then be required to provide a letter of intent to move forward with the approved project. Upon receipt of the signed letter, the design incentive will be disbursed to the customer.
Step 4 – The customer will be required to submit monthly progress reports detailing key project activities and milestones up until the final inspection of the project by the Program Administrator. Monthly progress reports are due on the 10th day of the month and must cover the entire previous month.
Step 5 – Upon design, construction and commissioning of the CHP project, a pre-inspection will be conducted. Participants should review their pre-approved project for any changes and submit the following documents to the Program Administrator for review:
- Revised energy savings analysis/calculations (if changes were made during construction)
- Detailed, itemized invoices or proofs of purchase for the equipment installed
- Completed letter of attestation
Supporting technical documentation will be reviewed by Program staff, and an onsite inspection to verify the installation may be conducted. Upon receipt and verification of all required documentation, the incentive check will be processed and mailed to the applicant or to an authorized representative, if requested on the application.
Step 6 – The performance period lasts a total of 18 months, from the date of final system inspection by the Program Administrator. Unless there are significant issues, the Program Administrator will disburse the production incentive based on six-month reviews with a maximum of three Production Incentive payments within 6 to 8 weeks of the end of a given six-month period.
Apply online or contact us at 855-827-2222 to request a printable version.