State and Local Policy Database

Deployment Incentives

State financial incentives are an important instrument for increasing the use of technologies that provide benefits to both residents and the state overall. Rebates, grants, tax credits, and deductions are all ways in which deployment of new CHP can be incentivized at the state level. The leading states have mixtures of multiple types of incentives. Among the strategies that some states choose are net metering regulations that can encourage CHP deployment by facilitating owners of systems to get credit for excess electricity they produce.

Incentives, grants, or financing: CHP systems may have access to loans through the Alabama SAVES Revolving Loan Program. Administered by the Alabama Department of Economic and Community Affairs, this revolving loan program is designed to specifically address industrial energy use. CHP is an eligible technology and loans range from $50,000 to $4 million and offer a 1% interest rate.

Last Updated: July 2017

Incentives, grants, or financing: There are currently no state policies that provide incentives for natural gas-fueled CHP, but biomass systems are eligible for assistance through the Alaska Energy Authority.

Net metering: Although there are net metering regulations in the state, CHP is not an eligible technology

Last Updated: August 2017

Incentives, grants, or financing: CHP facilities are eligible for the Energy Equipment Property Tax Exemption, which provides a property tax exemption to owners of CHP systems. Commercial and industrial customer of Southwest Gas Corporation may also be eligible for rebates of $400/kW to $500/kW for CHP installations that are at least 60% efficient.

Net metering:  The Arizona Corporation Commission (ACC) adopted net metering rules in October 2008 that took effect in May 2009.  These rules allow net excess generation credited to the customer's bill at the retail rate through a kWh credit.

Last Updated: August 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: July 2017

Incentives, grants, or financing: CHP systems may have access to grants and loans through the Self-Generation Incentive Program (SGIP), which provides incentives to customers who produce electricity from a variety of sources. Beginning in 2017, all gas generation projects within the SGIP program must blend a minimum of renewable fuel with the gas fueling the SGIP project. In 2017 that amount must be at least 10% of the total fuel input, rising each year to 100% in 2020. This program is thus much less supportive of traditional natural gas-fueled CHP than previously, and will impact a smaller portion of the CHP market, namely, those potential projects that are located near an affordable source of high quality biogas, since pipeline-grade renewable biogas is currently more expensive than regular natural gas.

 

Net metering: Under the current net energy metering (NEM) tariff, participating customers receive a bill credit for excess generation that is exported to the electric grid. On a month-to-month basis, bill credits for excess generation are applied to a customer's bill at the retail rate. At the end of a customer's 12-month billing period, any balance of surplus electricity is trued-up at a separate fair market value, known as net surplus compensation (NSC), which is based on a 12-month rolling average of the market for energy.

In January 2016, the California Public Utilities Commission (CPUC) adopted a NEM successor tarriff (AB 327, 2013), which continues the existing NEM structure while making adjustments to align the costs of NEM successor customers more closely with those of non-NEM customers. Among the new elements to NEM mad by the decision is a requirement that NEM successor customers must pay non-bypassable charges on each kilowatt-hour (kWh) of electricity they consume from the grid. Each investor owned utility (IOU) must offer the current net metering tariff until it reaches its net metering program limit or by July 1, 2017, whichever comes first, after which the NEM successor tariff will be available to new customers. Customer-sited CHP facilities are eligible for both NEM tariffs if they are fueled by eligible renewable fuels.

Last Updated: August 2017

Incentives, grants, or financing:  CHP may be eligible for loans or other assistance from the Colorado Energy Office. Xcel Energy offers incentives of approximately $11.91/MWh for the first ten years of production.

Net metering: Net metering rules apply to CHP in Colorado. Customer-generators are eligible for net metering in Colorado for retail renewable distributed generation, but different rules apply to investor-owned utilities (IOUs), municipal utilities, and electric cooperatives. All utilities are subject to the rules (except small municipal utilities) and credit net excess generation on the customer's next bill at the retail rate.

Last Updated: August 2017

Incentives, grants, or financing:  A state loan program provides long-term financing options for the installation of customer-side distributed resources, including CHP systems larger than 50 kW.

Net metering: Connecticut’s net metering regulation is only applicable to renewable-powered systems up to 2MW in size.

Last Updated: August 2017

Incentives, grants, or financing: CHP systems may be eligible for an incentive through Delaware’s Energy Efficiency Investment Fund (EEIF), which helps commercial and industrial customers with the cost of energy efficiency equipment.

Last Updated: August 2017

Incentives, grants, or financing: Cogeneration Personal Property Tax Credit helps provide a 100% personal property tax exemption for cogeneration facilities within the District. Owners of cogeneration equipment used for developments of more than one million square feet are eligible if the fuel used to generate power was previously subject to a D.C. tax.

Net metering: District of Columbia Net Metering provides compensation for customers' monthly net excess generation (NEG) depending on the size of the generator. For smaller systems of100 kW or less, NEG is credited to the customer's next bill at the full retail rate, and for systems over 100 kW up to 1 MW, NEG is credited to the customer's bill at the generation rate.

Last Updated: August 2017

Incentives, grants, or financing: CHP systems are eligible for the state’s Solar and CHP Sales Tax Incentive (Fla. Stat. § 212.08). CHP systems that are sold and used in Florida in facilities that primarily manufacture, process, compound or produce “for sale items of tangible personal property” are exempt from Florida’s Sales and Use Tax.

Net metering: Florida’s Public Service Commission (PSC) adopted rules for net-metering for renewable-energy systems up to 2 MW in capacity in March 2008. CHP is eligible to net meter, as it meets the Florida statutory (Section 377.803) definition of "renewable energy."

Last Updated: July 2017

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: July 2017

Incentives, grants, or financing: In July 2013, Hawaii enacted legislation allowing the Department of Business, Economic Development, and Tourism to issue Green Infrastructure Bonds for clean energy installations, including CHP.

Net metering: Small biomass energy systems are eligible for net metering in Hawaii, with a size limit of 100kW for customers of most utilities. CHP is not explicitly listed as an eligible technology.

Last Updated: August 2017

Incentives, grants, or financing: Retrofit projects that incorporate CHP may be eligible for Idaho’s Low-Interest Energy Loan Programs.

Last Updated: July 2017

Incentives, grants, or financing: Launched in 2014, Illinois’ Public Sector CHP Pilot Program will provide cash incentives for CHP projects that increase energy efficiency of local governments, municipal corporations, public school districts, community college districts, public universities, and state/federal facilities. The program is structured to provide performance based incentives during various stages of public sector projects, including after the design phase ($75/kW), commissioning ($175/kW), and after 12 months of measured operational performance ($0.08/kWh or $0.06/kWh depending on system efficiency).

Net metering: Net metering rules do not apply to CHP and are only applicable to renewable-powered systems. Systems smaller than 2 MW may net meter, but those over 40kW are required to provide required metering equipment.

Last Updated: July 2017

Net Metering: Applicable to systems up to 1MW, Indiana’s net metering standard requires that all investor-owned utilities offer net metering to electric customers, but CHP is not an eligible technology.

Last Updated: August 2017

No state financial assistance or incentive programs are available for CHP. Some customers in MidAmerican Energy or Alliant Energy service territory may be eligible for rebates, but utility incentives are limited to bottoming cycle waste heat to power (WHP) systems.

Last Updated: August 2017

Net Metering: Kansas allows net metering of systems up to 200kW, provided they are powered by renewable resources such as wind, solar, and biomass.

Last Updated: August 2017

Net Metering: Kentucky offers net metering to the same types of systems as it does interconnection. CHP systems would have to be powered by biomass or biogas, and must be no larger than 30kW.

Last Updated: August 2017

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: August 2017

Incentives, grants, or financing: CHP is eligible for incentives through Efficiency Maine Trust’s Large Electrical Efficiency Program, an incentive program for large electrical efficiency and distributed generation projects. This competitive program solicits proposals for projects that reduce grid supplied kilowatt hour (kWh) consumption from Maine businesses, institutions, and governments. Incentive awards range from $100,000 and $1,000,000 per project, or up to 50% of total project costs.

Net Metering: All of Maine's electric utilities -- investor-owned utilities (IOUs), consumer-owned utilities (COUs, which include municipal utilities and electric cooperatives) -- must offer net energy billing (net metering) for individual customers. IOUs are required to offer net metering to eligible facilities with capacity limits up to 660 kilowatts (kW). COUs are required to offer net metering to customer-generators up to 100 kW, but, they are authorized to offer net metering to eligible facilities with capacity limits up to 660 kW at their discretion.

Net metering is available to owners of eligible, qualified facilities, including facilities generating electricity using eligible CHP systems. CHP systems must meet efficiency requirements in order to qualify for net metering: micro-CHP 30 kW and below must achieve combined electrical and thermal efficiency of 80% or greater, and micro-CHP 31 kW to 660 kW must achieve combined efficiency of 65% or greater.

Last Updated: August 2017

Incentives, grants, or financing: The Maryland Energy Administration announced a CHP Grant Program in fiscal year 2017 to encourage CHP at industrial facilities and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government buildings). The goal of the program is to increase the energy resiliency of these facilities while also contributing to the state's energy savings targets. Incentives range from $425/kW to $575/kW per project, based on the size of the system and funding availability. Up to $4.025 million is available for this program in 2017. CHP projects may also be eligible for other assistance through Maryland Energy Administration’s Lawton Loan Program or Maryland’s Clean Energy Capital program.

Net metering: Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities -- investor-owned utilities (IOUs), electric cooperatives and municipal utilities. Residents, businesses, schools or government entities with systems that generate electricity using micro-CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for micro-CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 and took effect July 1, 2009. CHP systems exceeding 30 kW in capacity are not eligible. In 2011 the law was expanded to require utilities to develop a standard tariff for net metering (S.B. 380).

Last Updated: August 2017

Incentives, grants, or financing: Through the Mass Save CHP Program, CHP system owners have access to three tiers of incentives – basic, moderate, and advanced – and each tier provides a greater reward to systems that are sized and designed to achieve ideal performance and cost-effectiveness. Incentives range from $750/kW to $1,200/kW and cannot exceed 50% of total project costs.

Net metering: In Massachusetts net metering was originally authorized for renewable-energy systems and combined-heat-and-power (CHP) facilities with a generating capacity up to 30 kilowatts (kW) by the Massachusetts Department of Public Utilities (DPU) in 1982. In 1997, the maximum individual system capacity was raised to 60 kW and customers were permitted to carry any net excess generation to the next bill. In July 2008, net metering was significantly expanded by S.B. 2768 and the DPU adopted rules implementing the law in June 2009.

The DPU adopted amended net-metering rules in July 2009. In August 2009, the DPU issued its model net metering tariff so that customers in Massachusetts are subject to the same net metering tariffs regardless of utility. The state's investor-owned utilities must offer net metering. Municipal utilities are not obligated to offer net metering, but they may do so voluntarily. The aggregate capacity of net metering is limited to 1% of each utility’s peak load.

CHP systems under 60 kW are eligible as "Class I" systems for net metering in Massachusetts.

Last Updated: August 2017

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: August 2017

Net metering:  Minnesota's net-metering law, enacted in 1983, applies to all investor-owned utilities, municipal utilities and electric cooperatives. All "qualifying facilities" less than 40 kilowatts (kW) in capacity under the federal Public Utility Regulatory Policy Act of 1978 (PURPA) are eligible. There is no limit on statewide capacity. Each utility must compensate customers for customer net excess generation (NEG) at the "average retail utility energy rate," defined as "the total annual class revenue from sales of electricity minus the annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales." This rate is basically the same as a utility's retail rate.

Last Updated: August 2017

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: August 2017

Incentives, grants, or financing: CHP is eligible for low-interest loans through the Division of Energy’s Energy Loan Program, which offers financing to hospitals, cities (including city-owned water and wastewater treatment plants), counties, schools and universities for energy efficiency projects. CHP is also eligible for low-interest loans under Missouri's Linked Deposit Program administered by the State Treasurer's Office. Loan proceeds may be used for energy efficiency measures through building renovations, repairs and maintenance or purchase of equipment and facilities for businesses, farming operations and multifamily housing. In addition, CHP may be eligible for utility incentives through business custom programs administered by Kansas City Power & Light or Ameren Missouri.

Last Updated: August 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: July 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: August 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: July 2017

Incentives, grants, or financing: Commercial CHP projects may be eligible for financing assistance through New Hampshire’s Clean Energy Fund, which is a $6 million revolving loan program administered by the Community Development Finance Authority (CDFA).

Net metering: As a result of 2011 legislation (H.B. 381), small CHP systems between 1kW and 30kW may net meter their electricity, provided they have system fuel efficiencies of 80% or greater. Systems between 30kW and 1MW may net meter, provided they meet a fuel system efficiency level of 65%. All told, CHP may only account for up to 2MW of all net metered electricity in the state, which is capped at a 50MW capacity limit. Any customer net excess generation (NEG) during a billing cycle is credited to the customer's next bill and carried forward indefinitely. At the end of a 12-month period, customers may choose to receive payment for any NEG at the utility's avoided-cost rate.

Last Updated: June 2016

Incentives, grants, or financing: New Jersey provides incentives for CHP deployment through several programs.

The state established its Energy Resilience Bank in 2014 to provide $200 million in grants and loans to critical facilities for installing CHP and other distributed energy resources. The program supports projects that are designed to provide energy to all designated critical loads during a seven-day grid outage without a delivery of fuel to emergency generators. Grants are calculated on a project-by-project basis but will not be less than 40% of the eligible costs including new CHP equipment, switchgear, engineering and installation. In 2015, the Energy Resilience Bank officially updated its program to include hospital resilience projects.

New Jersey’s Clean Energy Program (NJCEP) offers financial incentives for several types of CHP facilities. The CHP and Fuel Cell Incentive Program provides an incentive ($/W) depending on system size for projects that meet a 65% LHV CHP efficiency standard. The program was amended July 1, 2015 to increase the amount of grant aid for CHP projects over 500 kW and the new incentive structure provides a significant increase in incentives for projects over 1 MW in size. The program was further amended in July 1, 2016 to suspend fuel cells without heat recovery from participation in the program. Incentives are higher for CHP projects that utilize renewable fuels. 

The state’s Cogeneration Tax Exemption provides a sales and use tax exemption on natural gas purchases for customers using gas to fuel on-site energy generation. Additionally, the Act amended the definition of “contiguous property” to include those buildings attached to or served by a district thermal energy system. This definition allows electricity generated by the system to be delivered to other facilities served by the same thermal district energy system, using existing infrastructure and at prevailing wheeling tariffs.

Last Updated: August 2017

Incentives, grants, or financing: New Mexico's Energy Efficiency and Renewable Energy Bonding Act authorizes bonds, to be issued to finance energy efficiency and renewable energy improvements in state government and school buildings. CHP systems are eligible for funding.

Net metering:  In January 2007, the New Mexico Public Regulation Commission (PRC) extended the availability of net metering to systems up to 80 megawatts (MW) in capacity. Net metering is available to all "qualifying facilities" (QFs), as defined by the federal Public Utility Regulatory Policies Act of 1978 (PURPA), which generally include CHP systems. Previously, net metering in New Mexico was limited to systems up to 10 kilowatts (kW) in capacity.

Net-metered customers are credited or paid for any monthly net excess generation (NEG) at the utility's avoided-cost rate. All utilities subject to PRC jurisdiction must offer net metering (municipal utilities, which are not regulated by the commission, are exempt). Customers on a time-of-use tariff are permitted to net meter. There is no statewide cap on the aggregate capacity of net-metered systems.

Last Updated: August 2017

Incentives, grants, and financing: NYSERDA's Program Opportunity Notice 2568 makes up to $21 million available for CHP installations through 2018. Specifically, NYSERDA will provide financial incentives for the installation of grid-connected CHP systems at customer sites that pay the Systems Benefit Charge (SBC) on their electric bill, or if new construction, will pay the SBC surcharge on the electric bill once interconnected.

The CHP Program is available to systems of any size and, in addition to incentives, it provides consumer protection regarding quality of equipment, and consumer protection regarding project right-sizing. Quality of equipment is addressed through a streamlined approach based on a NYSERDA-developed list of pre-approved standardized packaged CHP modules in sizes 3 MW and smaller, or a case-by-case rigorous review of custom-engineered CHP systems size 1 MW and greater (in the 1 MW to 3 MW overlap range, applicants can opt for either a pre-engineered approach or a custom-engineered approach and will receive the identical incentive either way). Assurances of right-sizing of projects can proceed through a streamlined approach based on a NYSERDA-developed set of "rules of thumb" sizing guidelines, or a case-by-case rigorous review of custom-sized project designs.

In 2016, Con Edison leveraged the NYSERDA-run program and offered an added incentive to projects that apply to NYSERDA for CHP funding until May 31, 2016 and filed a Notice of Intent to participate in the Brooklyn Queens Demand Management Program by May 31, 2016. The purpose of the partnered program is to minimize the burden of participation in two programs and maximize the incentive for CHP to fast-track deployment of CHP resources in a transmission-constrained, high-demand load pocket of New York state. Con Edison will match NYSERDA's base incentive up to $1,800/kW (or 100% of the project cost, whichever is less).

Net metering: Net-metering is available on a first-come, first-serve basis to customers of investor-owned utilities. Non-residential fuel cells up to 1.5 MW and residential micro-CHP up to 10 kW are eligible.

Last Updated: August 2017

Incentives, grants, or financing:  In previous years, a Renewable Energy Tax Credit program offered a credit equal to 35% of the cost of eligible CHP systems and other renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. This tax credit expired at the end of 2015.

Last Updated: August 2017

Incentives, grants, or financing: CHP systems maybe be eligible for assistance through the state’s Sales and Use Tax Exemption for Electrical Generating Facilities program, according to which all electrical generating facilities are 100% exempt from sales and use taxes in North Dakota.

Net metering: North Dakota’s net metering rule applies to systems 100 kW or smaller that operate in the service areas of investor-owned utilities. If a customer has net excess generation (NEG) at the end of a monthly billing period, the utility must purchase the NEG at the utility's avoided-cost rate. There is no statewide limit on aggregate net-metered capacity. These rules apply to CHP systems.

Last Updated: July 2017

Incentives, grants, or financing: Ohio offers a 100% Energy Conversion and Thermal Efficiency Sales Tax Exemption to industrial and commercial property owners with energy conversion, solid waste energy conversion or thermal efficiency improvement facilities designed, constructed or installed after December 31, 1974.

Net metering: Applicable only to renewable-powered systems and microturbines, Ohio’s net metering rules have been updated several times since being enacted in 1999.

Last Updated: August 2017

Net Metering: Oklahoma has been offering net metering to CHP systems since 1988 under OCC Order 326195. Utilities are not required to purchase net excess generation (NEG) from customers, but customers may request the utility to purchase their NEG. If the utility agrees, the NEG will be purchased at the utility's avoided-cost rate.

Last Updated: August 2017

Incentives, grants, or financing: Oregon’s Department of Energy offers both grants and tax incentives for CHP through its Energy Incentives Program. Energy Trust of Oregon can also provide incentives for fossil fuel CHP generation that increases total system efficiency, is more cost-effective than the alternative resource, and would be used on-site.

Last Updated: August 2017

Incentives, grants, or financing: CHP systems may have access to state grants and loans through the Pennsylvania Energy Development Authority (PEDA) and Commonwealth Financing Authority’s Alternative Clean Energy (ACE) Program.

Net metering:   Net metering rules apply to CHP in Pennsylvania. The PUC adopted net-metering rules and interconnection standards for net-metered systems and other forms of DG in 2006, pursuant to the Alternative Energy Portfolio Standards (AEPS) Act of 2004. In 2007, H.B. 1203 amended the Pennsylvania AEPS and also expanded net metering. Revised rules consistent with these amendments were adopted by the Pennsylvania Public Utilities Commission (PUC), effective November 29, 2008 (PUC Omitted Rulemaking Order, Docket L-00050174).

In Pennsylvania, investor-owned utilities must offer net metering to residential customers that generate electricity with systems up to 50 kilowatts (kW) in capacity; nonresidential customers with systems up to three megawatts (MW) in capacity; and customers with systems greater than 3 MW but no more than 5 MW who make their systems available to the grid during emergencies. Net metering is available when any portion of the electricity generated is used to offset on-site consumption (i.e., system size is not limited by the customer's on-site load). Systems eligible for net metering include those that generate electricity using combined heat and power (CHP) technologies.

Last Updated: August 2017

Incentives, grants, or financing:  Incentives, grants, or financing:  National Grid’s CHP Program provides capacity incentives ranging from $900/kW to $1250/kW, depending on two factors: (1) the efficiency of the CHP system design, and (2) the host customer’s commitment to implement other energy efficiency measures that reduce onsite energy consumption. The combined incentives awarded to a single project cannot exceed 70% of the project costs. For more information, see National Grid’s Guide to Submitting CHP Applications for Incentives in Rhode Island (Version May 2016).

Net metering: Applicable only to renewable energy systems, Rhode Island’s net metering rules are capped at fairly small system capacity limits.

Last Updated: August 2017

Some CHP projects may be eligible for loans from the Conserfund Loan and South Carolina SAVES programs. Conserfund is a revolving loan program offering for projects at public or non-profit facilities. The South Carolina SAVES program provides low-interest loans through Qualified Energy Conservation Bonds (QECB) allocated by the State Energy Office. However, neither program has made an award for a CHP project.

Last Updated: August 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: August 2017

There are currently no statewide policies that provide additional incentives for CHP deployment. In 2015, the Tennessee Valley Authority (TVA) issued a request for proposals to industrial customers in the TVA-service area to provide technical guidance and financial assistance towards the capital costs of waste heat recovery and/or CHP projects. The objective is to provide up to $7 Million to establish at least 5 MW of customer-owned generation from waste heat recovery and CHP.

Last Updated: August 2017

There are currently no statewide policies that provide incentives for CHP deployment. CHP system owners may benefit from financing opportunities in some localities. The Property Assessed Clean Energy (PACE) statute, Chapter 399 of the Texas Local Government Code, authorizes municipalities and counties in Texas to work with private sector lenders and property owners to finance qualified improvements using contractual assessments voluntarily imposed on the property by the owner. City of Houston, City of Dallas, Travis County, Williams County, Willacy County have all created districts. CHP is eligible and being promoted for PACE financing in these areas.

Last Updated: August 2017

Incentives, grants, or financing: Some CHP systems may be eligible for incentives through the state's Alternative Energy Development Incentive (AEDI). This incentive program uses a wide definition of "alternative" energy, including biomass, petroleum coke and shale oil. The incentive is only available to those projects located in a designated or registered Alternative Energy Development Zone. The incentive itself can be up to a 100% credit of new state taxes over the life of the project.

Net Metering: Utah law requires their only investor-owned utility, Rocky Mountain Power (RMP), and most electric cooperatives to offer net metering to customers who generate electricity using renewables. Systems that use waste gas and waste heat capture or recovery are eligible. Net metering is available for residential systems up to 25 kilowatts (kW) in capacity and non-residential systems up to two megawatts (MW) in capacity. HB 145 of 2010 broadened the definition of a customer generation system to remove a requirement that the system be owned or leased by the utility customer.

Last Updated: August 2017

Incentives, grants, or financing: Efficiency Vermont provides some financial support for CHP projects in the state, as enabled by the 2016 Order of Appointment for VEIC.

The state of Vermont offers an Investment Tax Credit for eligible CHP systems and other renewable energy equipment on business properties. The incentive for CHP is 2.4% with a maximum system size of 50 MW.

Net metering:  Vermont's original net-metering legislation was enacted in 1998, and the law has been expanded several times subsequently. Any electric customer in Vermont may net meter after obtaining a Certificate of Public Good from the Vermont Public Service Board (PSB). An application for a Certificate of Public Good for Interconnected Net Metered Power Systems is available on the program web site listed above. Net metering is generally available to systems up to 250 kilowatts (kW) in capacity that generate electricity using micro-combined heat and power (CHP) systems up to 20 kW. CHP systems greater than 20 kW in capacity are not eligible for net metering.

Last Updated: July 2017

There are currently no state policies that provide additional incentives for CHP deployment.

Last Updated: July 2017

Net metering: Washington's net-metering law, originally enacted in 1998, applies to systems up to 100 kilowatts (kW) in capacity that generate electricity combined heat and power technologies, including fuel cells. All customer classes are eligible, and all utilities—including municipal utilities and electric cooperatives—must offer net metering. Net metering is available on a first-come, first-served basis until the cumulative generating capacity of net-metered systems equals 0.25% of a utility’s peak demand during 1996. This limit increased to 0.5% on January 1, 2014.

Last Updated: August 2017

Net metering:  West Virginia’s net metering rules were expanded and improved in 2010. Today there is a system cap of 2MW, and systems over 500kW must carry at least $1,000,000 in liability insurance.  Systems that generate electricity using "alternative" or "renewable energy" resources are eligible for net metering, including combined heat and power (technically called "recycled energy" in the rules).

Last Updated: July 2017

Net metering: The Public Service Commission of Wisconsin (PSC) issued an order on January 26, 1982, requiring all regulated utilities to file tariffs allowing net metering to customers that generate electricity with systems up to 20 kilowatts (kW) in capacity. The order applies to investor-owned utilities and municipal utilities, but not to electric cooperatives. All distributed-generation (DG) systems, including combined heat and power (CHP), are eligible. There is no limit on total enrollment. The PSC has not adopted administrative rules for net metering. Utilities' net-metering tariffs contain some variations. Customer net excess generation (NEG) is generally credited at the utility's retail rate for renewables, and at the utility's avoided-cost rate for non-renewables.

Last Updated: August 2017

There are currently no state policies that provide incentives for CHP deployment.

Last Updated: August 2017