FirstEnergy (Potomac Edison) - Combined Heat and Power Program

March 02, 2015


FirstEnergy offers incentives for Combined Heat and Power (CHP) systems for commercial, industrial, governmental, and institutional customers in its service territory in Maryland. The program supports the Maryland EmPower Efficiency Act's  goal of 15% reduction in per-capita energy consumption by 2015. 


The CHP system should be sized solely for on-site energy use by the customer and should not be exporting energy under its normal operational conditions. CHP systems can be fueled by either biogas or natural gas. The system must have designed efficiency of at least 65%. 


The program offers three levels of incentives. 

  1. Design Incentives: $75 per KW
  2.  Installation Incentive: $275 per kW for projects under 250 kW and $175 per kW for projects 250 kW and over
  3.  Production Incentive: 7 c/kWh for first 18 months

Total incentives are capped at $1.25 million per project. To qualify for the incentive, the project must be operational by December 31, 2017. 

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Maryland
Incentive Type: Performance-Based Incentive
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Biomass
  • Combined Heat & Power
Incentive Amount: Design incentive: $75 per kW
Installation incentive: $275 per kW (for project under 250 kW), and $175 per kW (for projects greater than 250 kW)
Production incentive: 7c/kWh (for 18 months)
Maximum Incentive: Incentives capped at $1.25 million per project
Eligible System Size: Must be designed per customers on-site average energy needs
Equipment Requirements: Must be fueled by biogas or natural gas
Must have operational efficiency of at least 65%
Installation Requirements: All applications must be pre-approved
Must be operational by December 31, 2017
Ownership of Renewable Energy Credits: Not specified


This program has 1 incentives
Technologies: Biomass, Combined Heat & Power
Sectors: Commercial, Industrial, Local Government, State Government, Agricultural, Integrators
Parameters: The incentive is 75.00 $/kW, The incentive is 275.00 $/kW, The incentive is 0.07 $/kWh (1 year), The incentive has a minimum of $1.00

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.