Distributed Generation as Combined Heat and Power (DG-CHP)

September 27, 2012


Note: The most recent solicitation under this program expired October 4, 2011. This summary describes the program as it existed under the recently expired solicitation. It will be revised if and when a new solicitation is issued.

The NYSERDA DG-CHP program is an initiative designed to support the advancement of DG-CHP technology within the state through a competitive grant process for new demonstration projects. In general, projects are eligible for grants up to the lesser of 30% of project costs or $1 million. However, an additional cost share of up to 20% (for a total of 50%) may be provided under certain circumstances. Each of the characteristics listed below may increase maximum award by 10%.

  • The project is located in ConEd service territory;
  • The project is connected to a "spot network" (as opposed to a radial grid) outside of ConEd service territory;
  • The project is powered by a renewable fuel or waste heat, but not eligible for incentives under the Customer-Sited Tier (CST) of the state renewable portfolio standard (RPS) program; or
  • The project is designed to provide seamless flicker-free between normal and back-up power when serving priority loads during periods of grid-outage;
  • The system will be an integral part of a "facility of refuge", available during disaster or emergency;
  • The project utilizes a pre-engineered, pre-packaged, factory tested DG-CHP system that integrates electric generation and thermal systems.

As with other programs funded out by the New York System Benefits Charge (SBC), projects must be located in New York within the service territories of one of New York's investor owned utilities (i.e., those that levy the SBC charge on customer bills). Project size is limited to 2 MW of electric nameplate capacity behind a single electric meter. In addition, systems must be designed to have a projected thermal efficiency of 60%, have air emissions of less than 1.6 lbs of NOx/MWh of electricity produced, and be capable of grid independent operation to supply priority loads during periods of grid outage. Projects awarded funding under some prior NYSERDA DG programs are not eligible, nor are systems using commercially available fuel cells and DG systems fueled by anaerobic digester gas that are eligible to participate in the New York Renewable Portfolio Standard (RPS) program. However, proposals seeking to augment existing equipment to meet program eligibility requirements are eligible. Please consult program documents for information on additional restrictions and exceptions to some of these rules. All systems must be commissioned within one year of the NYSERDA award notification.

A total of $5.5 million was available under the most recent solicitation with an application deadline of October 4, 2011. Click here for information on DG-CHP projects previously funded by NYSERDA.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New York
Incentive Type: Grant Program
Web Site: http://nyserda.ny.gov/Funding-Opportunities/Closed-Funding-Opportunities/PON-2373-Distributed-Generation-as-Combined-Heat-and-Power-DG-CHP.aspx?sc_database=web
Administrator: New York State Energy Research and Development Authority
Start Date: 08/25/2011 (most recent solicitation)
Eligible Renewable/Other Technologies:
  • Combined Heat & Power
Incentive Amount: Varies, 30-50% of project costs
Maximum Incentive: $1 million per project
Equipment Requirements: Maximum system size of 2 MW behind any single electric meter;
The DG-CHP system must be designed and installed for grid independent operation and be able to supply priority loads during a grid outage;
Must have a projected overall thermal efficiency of 60% or more; and
Meet an air emission limit of no more than 1.6 lb NOx/MWh


Name: Edward Kear
Organization: New York State Energy Research and Developmen
Address: 17 Columbia Circle
Albany NY 12203-6399
Phone: (518) 862-1090
Email: ebk@nyserda.ny.gov

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.