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State-Level Customer Engagement Network

Maryland Energy Administration
Customer Engagement Network Maryland Energy Administration
Contact Mr. Brandon Bowser
Address 1800 Washington Blvd
Baltimore, MD 21230
Phone +14433060304
Program Description
The Maryland Energy Administration (MEA) is pleased to offer its FY22 Combined Heat and Power (CHP) Grant Program. This incentive program provides grants on a first-come, first-served basis to help fund eligible CHP systems for Maryland businesses, nonprofits, industrial organizations, manufacturers, critical infrastructure, multifamily housing, agricultural operations, and other commercial-scale organizations and infrastructure seeking reliable, affordable, sustainable, and efficient energy to meet annual electricity and heat demands.

Grants are offered under two (2) Areas of Interest (AOIs): (1) Resilient and Sustainable CHP Systems and (2) Efficient CHP Systems. AOI 1 provides funds for CHP systems that can operate independent of the electricity grid in the event of an outage to power essential loads. It also provides funds for systems that utilize sustainable fuel sources like renewable natural gas (RNG), landfill gas, and biomass. AOI 2 provides incentives for CHP systems that connect in parallel with the utility grid but do not have the capability to operate when the grid loses power. These systems are primarily installed for operational efficiency and cost management purposes where the value of continuous power availability is not paramount.

Awards are calculated based on nameplate electrical capacity at prescribed amounts per kilowatt (kW), except for micro-CHP systems which are considered by MEA to be rated at 60 kW or less. Their calculation is discussed at the end of this paragraph. All CHP systems rated higher than 60 kW receive awards ranging from $500 - $600 per kW (AOI 1 systems) or $400 - $500 per kW (AOI 2 systems). The maximum total AOI 1 award is $650,000 and the maximum total AOI 2 award is $400,000. AOI 1 micro-CHP systems are awarded 50% of their Net Total Project Costs (up to $100,000 total) and AOI 2 micro-CHP systems are awarded 40% of their Net Total Project Costs (up to $80,000).

For more information, visit MEA's CHP Grant Program webpage at Submit questions about the program via email to or call Program Manager Brandon Bowser at (443) 306-0304.