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Incentives/Policies for Renewables & Efficiency

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Combined Heat and Power Grant Program   

Last DSIRE Review: 03/05/2013
Program Overview:
State: Connecticut
Incentive Type: State Grant Program
Eligible Renewable/Other Technologies: CHP/Cogeneration
Applicable Sectors: Commercial, Industrial, Institutional, Hospitals, Municipal Wastewater treatment plants, Universities, Grocery stores
Amount:Varies based on the specific technology, efficiency, and economics of the installation
Maximum Incentive:$450 per kilowatt
Equipment Requirements:5 megawatts or less
Installation Requirements:Projects must be in development phase
Must be in CL&P or UI service territory
Funding Source:Clean Energy Fund
Program Budget:$6 million
Start Date:07/08/2013 (Second Solicitation)
Expiration Date:02/27/2015
Web Site:

The Connecticut Green Bank previously known as the Clean Energy Finance and Investment Authority (CEFIA) is administering a three year Combined Heat and Power (CHP) Pilot Program. The program offers grants, loans, and PPA options as incentives for development of CHP facilities in the State. The first solicitation of Request for Proposals (RFP) period expired on September 28, 2012.  The second solicitation opened on July 8, 2013 and will close on February 27, 2015. The program is committed in supporting CHP projects that support the State's micro grid initiative, which include CHP facilities for micro-grids that are installed at critical facilities*.

CHP technologies are eligible for either a grant, loan or power purchase incentive under the initial round of solicitations for new renewable energy generating equipment  up to five megawatts at commercial, industrial and institutional facilities. Financial support is intended to help finance the cost of CHP equipment for energy generating projects in the development phase that have not yet commenced the construction phase.

1.     Loan Option: Applicants can apply for a loan terms under CEFIA's contract term of 15-years. Loans shall be arranged with one of business financing partners. The value of loan enhancements is capped at present value of $450/kW of the project.

2.     Grant Option: Grants are awarded up to $450/kW per project

3.     Power Purchase Agreement (PPA) option: CEFIA will pay the project fixed price per kWh for power sold to retail customers for a period of 6 years. Total value of the PPA will be capped at a value of $450/kW for the project.

The level of financing are not based on size or cost, but vary based on the specific technology, efficiency and economics of the installation and will not exceed $450 per kilowatt. The intent of the financial support is to enable CHP project owners to achieve a reasonable “payback” during the life of the project, with a fair and reasonable return on investment, compared with purchasing the equivalent amount of power from the utility.

Please see Program Guideline handbook for more information about the incentive.

Critical Facilities are defined as a hospital, police station, fire station, water treatment plant, sewage treatment plant, public shelter, correctional facility, production and transmission facilities of a television or radio station, commercial area of a municipality, municipal center, supermarket, or any other area identified by the Department of Energy and Environmental Protection as critical.



  Information - CEFIA
Clean Energy Finance and Investment Authority
865 Brook Street
Rocky Hill, CT 06067
Phone: (860) 563-0015
Fax: (860) 563-4877
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.