The New York State Energy Research and Development Authority (NYSERDA) offers incentives up to $1.5 million for installation of qualified Combined Heat and Power (CHP) systems. Incentives awarded vary site-to-site depending on system design, system size and location. Total of $20 million is available for the program and is awarded on a first-come, first-serve basis. Applications are due by 5pm on December 30, 2016 or until all the funds are committed.  Please see the Program Opportunity Notice 2568 (PON 2568), listed as the program web site for this page for detailed information about the program.

Eligibility

CHP systems must be pre-qualified or conditionally qualified, and must come from approved CHP system vendors. The system must be sized between 50kW – 1.3 MW. All the incentives will be paid to approved CHP system vendors. List of qualified system vendors is available at the program website.

The program is open to customers of investor owned utilities that pay the Systems Benefit Charge (SBC) on their electric bill, or located within New York City or Westchester County and the CHP systems will be using natural gas subject to SBC surcharge on their gas bill. The list of utilities include Central Hudson, Con Edison, PSEG-Long Island, National Grid, New York State Electric and Gas, Orange and Rockland, or Rochester Gas and Electric. 

Program Description

Interested applicants who have determined that CHP is appropriate for your site can get a free preliminary (Level 1) feasibility analysis through Department of Energy’s Northeast CHP Technical Assistance Partnership program. For systems that do not fit within NYSERDA’s system sizing guidelines must get a more comprehensive level 2 analysis. The NYSERDA approved system vendor can be selected through a procurement process to install and maintain the system. CHP system may include more than one prime mover/generator units, and also include an absorption chiller.

NYSERDA will evaluate the application and provide incentive based on the size of the CHP and site location. Incentives are awarded directed to the vendor.

The program includes Critical Infrastructure 10% incentive bonus for systems that support critical infrastructure which include hospitals, public safety buildings, communication facilities, utilities, or other facilities determined by the local emergency management office. Additional, Targeted Zone 10% bonus is available for systems located within Consolidated Edison established CHP Targeted zone, provided that the system is fully operational prior to May of the target year.