NYSERDA to Provide Funds for CHP Acceleration

May 5, 2014
NYSERDA will provide financial incentives for the installation of pre-qualified, pre-engineered CHP systems by approved CHP system vendors at customer sites

CHP Acceleration, a program of the New York State Energy & Research Development Authority, is offering incentives for the installation of pre-qualified, pre-engineered combined heat and power systems.

The CHP systems must meet several standards. For example, the technology must come from approved CHP system vendors, and must be for customers that pay the system benefit charge (SBC) on their electric bill or are located within New York City or Westchester County.

NYSERDA will allocate funds on a site-by-site, first-come-first-served basis until December 30, 2016 or until all funds are committed, whichever comes first.  The maximum CHP system size is 1.3 MW. The maximum incentive per project, including bonuses, is $1.5 million.

The approved vendors are required to take full, single point-of-contact responsibility for proper installation and performance. They must provide a warranty/service agreement for a minimum of five years for the pre-qualified and conditionally qualified CHP systems that they offer.

The qualified CHP systems are capable of grid-independent operation during grid outages, and must be installed to provide priority power (as determined by the customer) during grid emergencies. NYSERDA will provide 10 percent bonus  for systems that support critical infrastructure (those systems and assets essential to the functioning of society and the economy). This includes  sites that are an official facility of refuge as recognized by the American Red Cross or the local Office of Emergency Management, and the electric and thermal output of the CHP system benefits the portion of the building designated as such.

NYSERDA will also provide a 10 percent bonus for sites within a Consolidated Edison established CHP Targeted Zone, provided the CHP system is fully operational prior to May of the target year.

NYSERDA has developed a set of conservative CHP system sizing guidelines for common building types based on combinations of site characteristics and CHP system sizes that have been shown to perform well.  Applications that fall within the sizing guidelines require significantly less engineering analysis and will receive a streamlined review by NYSERDA. The CHP system sizing guidelines can be found in NYSERDA’s CHP Acceleration Program CHP System Catalog. The sizing guidelines may be updated frequently.

A CHP system may consist of more than one prime mover/generator units, and may also include an absorption chiller. In general, only one CHP system can be installed per site.

Proposals are accepted through December 30, 2016.

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Reid Smith

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