Combined Heat & Power Pilot Program

Boost Efficiency, Reduce Energy Costs

Does your commercial, industrial or institutional facility have large heat and power load demands? If so, it’s worth exploring Combined Heat & Power technologies. You could be eligible for a grant, loan or power purchase incentive to offset the cost of investing in equipment to tap into this energy-efficient and renewable energy technology.

Increase operational efficiency and decrease energy costs

Combined Heat and Power (CHP) – also known as cogeneration – is an efficient, clean and reliable way to generate electricity and heat from a single fuel source. Gas turbines, microturbines, reciprocating engines, steam turbines and fuel cells are examples of commercially available combined heat and power technologies. Installing a combined heat and power system to meet your facility’s thermal and electrical base load needs can significantly increase operational efficiency while lowering energy costs and reducing emmisions.

The Clean Energy Finance and Investment Authority (CEFIA) seeks proposals for grants, loans, loan enhancements or power purchase incentives to help finance the cost of combined heat and power equipment for energy-generating projects. Projects must be in the development phase and cannot already be under construction. CEFIA places a strong emphasis on evaluating the financial feasibility of each proposed installation, as well as the applicant’s ability to complete construction in a timely manner.

Individual awards are not a fixed amount based on size or cost and will vary based on the specific technology, efficiency and economics of the installation. However, funding will not exceed the equivalent of $450 per kilowatt of nameplate rated capacity. Financial support is intended to help you achieve a fair and reasonable payback and return on investment during the life of the project compared to purchasing the equivalent amount of power, fule oil and/or gas from your utility.


Steps to Smart Energy Action

This program is ideal for various types of facilities that have both large electric and thermal load demands such as: municipal wastewater treatment plants, hospitals, colleges/universities/schools, grocery stores, manufacturing facilities, hotels, nursing/health care facilities as well as many others.

CEFIA accepts applications only for projects in the development phase. Projects that have begun construction prior to executing a Financial Assistance Agreement (FAA) with CEFIA will not be eligible for financial support under this program. Customer sites that have already received a grant from CEFIA under past solicitations for Combined Heat and Power Projects are also not eligible under this program. Furthermore, projects that have received or will receive an incentive from CEFIA under this solicitation are not eligible to participate in any future Zero Emission Renewable Energy Credit (ZREC) or Low-Emission Renewable Energy Credit (LREC) programs.

To be eligible for this program, projects must also meet the following criteria:

  • System must have a capacity rating of 5 MW or less
  • Generate power from a commercially available combined heat and power system
  • Be located in either CL&P or UI service territory
  • Generate electricity for on-site use, with the ability to sell excess electricity to the wholesale marketplace
  • Applicant must agree to accept the standard Financial Assistance Agreement “as is” except for technical revisions or project-specific revisions required due to special features of a particular project

Applications that do not meet all criteria will not be evaluated further for this program.

Application Deadline:

The application deadline under this Request for Proposals (RFP) is February 27, 2015 at 5 p.m. EST.  For more information about this program, contact CEFIA at info@ctcleanenergy.com or call 860-563-0015.

Important Links:


Who is Eligible?

Commercial, industrial and institutional customers in CL&P or UI service territories are eligible to participate in this program. 

The program is ideal for a wide range of commercial customers looking to reduce their facilities energy cost, improve power reliability, and become more sustainable while reducing their environmental impact. Eligible applicants include:

  • For-profit companies
  • Not-for-profit entities
  • Municipalities
  • State and federal agencies
  • Colleges and Universities
  • School districts
  • Not-for-profit and for-profit affordable housing companies
  • Public housing agencies
For more information contact CEFIA at info@ctcleanenergy.com or call 860-563-0015.