Energy Efficiency Investment Fund (EIFF) - Combined Heat and Power (CHP) Grant Pathway

Energy Efficiency Investment Fund (EIFF) - Combined Heat and Power (CHP) Grant Pathway

Status: ACTIVE
Funder: Delaware Department of Natural Resources and Environmental Control (DNREC)
Amount: Up to US $250,000
Last Updated: September 26, 2025

Summary

The Energy Efficiency Investment Fund (EIFF) offers grants for Combined Heat and Power (CHP) projects in Delaware, supporting non-residential facilities in enhancing energy efficiency. Grant funding can cover up to 60% of project costs, with a maximum award of $250,000 per address annually. Eligible projects must demonstrate energy savings and sustainability, with a focus on supporting minority, women, and veteran-owned businesses, small businesses, and non-profits. Pre-approval is encouraged to secure funding.

Overview

Note: Pre-approval is highly encouraged for all projects to ensure an applicant’s proposed project is eligible for grant funds and to reserve eligible funds. Applicants not gaining EEIF pre-approval before materials are ordered, installed, or services performed assume full risk of project ineligibility and/or exhausted funds. Energy Efficiency Investment Fund (EIFF) The Department of Natural Resources and Environmental Control (DNREC) administers Energy Efficiency Investment Fund (EEIF) rebates to support non-residential facilities in replacing aging and inefficient equipment and systems with energy efficient alternatives. Improving the energy efficiency of a business helps to decrease operating costs, reduce energy consumption, and improve environmental performance. Energy Efficiency Investment Fund rebates are available to perform energy assessments, to make general energy improvements, and to implement custom, site-specific improvements for either new or existing buildings. Combined Heat and Power (CHP) Grant Pathway The combined heat and power (CHP) pathway is designed to encourage the development of CHP in Delaware. Unlike traditional systems that produce electricity and heat separately, CHP, or cogeneration, is the concurrent production of electricity and useful thermal energy from a single source of energy. CHP systems are ideal for businesses with high annual hours of operation and a high thermal load. CHP systems yield increased energy efficiency, reduction in energy operating costs, and improvements in energy resiliency. CHP Grant Limits The Fund will not pay more than 60% of the energy efficiency-related project cost for any proposed project as detailed on itemized invoices (see exception for Energy Assessment Pathway in section 5.3). Program funds are limited. Grant awards will not exceed $250,000 per individual address per calendar year. DNREC reserves sole discretion to adjust the program grant caps. Particular consideration will be placed on organizations that support DNREC’s commitment to helping vital, yet vulnerable sectors of the community, including: minority, women, and veteran-owned businesses; small businesses (defined by the Delaware Dept. of Small Business as 100 employees or less); nonprofit organizations; educational institutions; state agencies; and local governments. To ensure availability, funding must be reserved prior to purchasing any equipment or beginning an audit or energy study. Grants for CHP projects will be paid at a rate of $500/kW of the installed system, up to 60% of the energy efficiency-related costs, whichever is less. Accepted CHP Products and Equipment The following CHP system designs are eligible for review. Professional Engineer (P.E.) signatures are required for the design portion of the project: Reciprocating Engine Microturbine Steam Turbine Gas Turbine Fuel Cells Equipment must be new and permanently installed, and meet the minimum 60% annual efficiency requirement. A decommissioning plan must be provided outlining the proper disposal and recycling details of any pre-existing equipment that will be removed. Expansion of an Existing System The incremental expansion of an existing CHP system is eligible. Grants will be calculated based on the incremental expansion of the system, not total system size. Equipment must be new and permanently installed. Power Purchase Agreements Third-party vendors and power purchase agreements (PPA) are eligible. The full power purchase agreement with final signatures must be provided prior to receiving grant payment. Existing and Future Flood Risk Mitigation Installations must be designed to avoid impacts from flooding, including future sea-level rise. Applicants are encouraged to utilize the Flood Risk Adaptation Map (FRAM) to determine whether the proposed site is within the 100-year, one-meter, sea-level rise floodplain. See site: http://www.firstmap.delaware.gov/FRAM. A flood risk mitigation plan must be submitted with the application as part of the proposed system design plan if the proposed project location is within the floodplain. CHP Funds Reservations Funds will be reserved for 18 months on a first-come, first-served basis. Final itemized invoices and supporting documents shall be submitted within 18 months of the reservation date or funds will be forfeited. If the project cannot be completed within the 18-month period of reservation and the applicant wishes for an extension, a milestone accomplishments report and form letter should be submitted to DNREC two months ahead of the reservation expiration date. DNREC reserves the right to either approve or deny any extension request based on currently available grant funds and/or milestone progress achievement.

Eligibility

You can learn more about this opportunity by visiting the funder's website. Eligible Projects Program participants must be non-residential facilities located in the State of Delaware. Projects that merely bring a building up to minimum energy code requirements will not be accepted.EligibilityThe EEIF Program is available to all non-residential, commercial, industrial, local government, governmental, and non-profit entities in the State of Delaware that pay the PUT.PUT payment will be verified by DNREC via customer utility bill(s) provided during application. Both retrofit and new construction projects are eligible for EEIF grants through all pathways.CHP Grant Eligibility:Eligible measures for installed costs are limited to Genset equipment, associated equipment (e.g. heat recovery jacket, switchgear, absorption chillers), installation costs, engineering and project management costs, and decommissioning costs of pre-existing equipment.