Energy Efficiency Investment Fund

Summary

The Energy Efficiency Investment Fund (EEIF) program promotes the use of energy efficient technologies by Delaware non-residential (commercial and industrial) customers that are users of gas or electricity whose purchase of those commodities from a distributor is subject to the public utility tax on gas or electricity. For more information on who pays the public utility tax, please see the Public Utilities chapter of the Delaware State Code (30 Del.C. Ch. 55). According to 29 Del.C. §8030, DNREC shall give preference to those applications proposing projects that are anticipated to produce the greatest reduction in energy consumption per Fund dollar invested, improve environmental performance, spur capital construction and facility modernization, encourage job retention and creation, and are likely to be substantially complete no later than one year following the issuance of financing from the Fund.

General Provisions

All grants are on a first-come first-served basis. With the exception of energy assessments, in no event shall the Fund provide grant funding for more than 60% of the energy efficiency related costs of any proposed project nor support projects already receiving support from the Green Energy Fund under this chapter or the Strategic Fund under subchapter I-B of Chapter 50, Title 29 of the Delaware Code. DNREC reserves the right to suspend, terminate, or modify the Fund at any time. DNREC may change program requirements, eligible measures, or grant amounts at any time. DNREC is not obligated to approve any submitted application that may result in exceeding the program budget. In the event of a program change, submitted applications will be processed according to program terms at the time of application pre-approval. Applicant (building owner) or contractor on behalf of applicant is fully responsible for providing a complete application and supporting documentation. Incomplete or missing information will delay and/or cancel processing of application.

All equipment must be new, purchased and installed before the grant payment can be issued. DNREC does not endorse any particular contractor, manufacturer, product, or system in promoting this program.

The applicant agrees to allow DNREC or its program evaluator to have access to the awarded facility’s energy use data for a period of at least two years following installation of the incentivized measures. Additionally, applicant agrees to DNREC publicly publishing awardee details such as but not limited to: total grant award amount, facility address, total project cost, fuel type, energy provider, fund appropriation, date completed, project type, dollar savings per year, and applicant approved facility photographs.

Pathways

There are four grant pathways available to Delaware non-residential entities with existing or new buildings tailored to differing needs and resources. All four pathways can be paired with the DNREC State Energy Program Revolving Loan Fund (SEPRLF) detailed in Section 4.1.5. Loan approval will not compromise an applicant’s EEIF grant amount, meaning that loans can be used in combination with a grant to help pay the balance of the project cost. Applications for SEPRLF are available on the EEIF website (https://de.gov/eeif).

Prescriptive Pathway Grants

Prescribed measures contain technologies where energy savings can be predicted with reasonable accuracy across all applications. The technologies currently eligible for the program include lighting, HVAC & water heating, and appliances & food services equipment. The program may modify or expand the list of eligible measures under the prescriptive grant pathway at any time. DNREC will notify applicants of any changes on the website and update any published materials. 

Custom Pathway Grants

The custom pathway grant option is designed to encourage non-standard energy efficiency measures, including measures not listed in the prescriptive pathway above and prescribed measures bundled into a comprehensive full facility upgrade that maximizes energy savings and cost-effectiveness. Projects qualifying under the custom pathway are generally more complex incorporating aggressive measures that permanently raise the efficiency levels beyond that of standard equipment. New construction project’s energy savings will be determined as the difference between the proposed/installed ECM/system and the current locally adopted energy code baseline parameters.

Retro-commissioning (RCx) measures may be eligible for the custom pathway with restrictions as discussed in additional detail below. RCx measures include the optimization and fine-tuning of existing buildings and systems in order to make them operate optimally and more efficiently, typically through scheduling, sequencing, set point optimization, and controls programming strategies, focusing on the systems in place instead of replacing the existing systems through a retrofit.

“AC Tune-Up” measures (e.g. refrigerant charge adjustment, coil cleaning, airflow adjustment, etc.) for residential style AC units exceeding 65 kBTUh capacity per unit may be eligible for the custom pathway. These measures must be split into their respective activities performed and not bundled together – e.g. specific calculations for a refrigerant charge adjustment, calculations for an economizer repair, etc.

As of July 2024; to help growers maximize savings and boost productivity, the EEIF program will support horticultural lighting projects for commercial indoor agriculture operators. 

The grant for a custom application will be paid at the following rates for each tier, up to 60% of energy efficiency related costs, whichever is less. Multi-tier and Comprehensive tier ECM’s must all be complete and final approved to be paid at the tier level rate. 

Electric Incentive - Single Tier: $0.20 / kWh, Multi-Tier: $0.25 / kWh, Comprehensive: $0.30 / kWh

Gas Incentive* - Single Tier: $10 / MMBTU, Multi-Tier: $20 / MMBTU, Comprehensive: $27 / MMBTU

*Fuel Switch Bonus: If measure is replacing a fossil fuel fired appliance with an electric alternative, add value to gas incentive rate if applicable. Single Tier: $2 / MMBTU, Multi-Tier: $5 / MMBTU, Comprehensive Tier: $8 / MMBTU

Energy Assessment Pathway Grants

For businesses in need of technical assistance to evaluate their facility for cost effective energy efficient upgrades, grants are available to help with the cost of the audit, feasibility study, and project design. Energy assessment grant payment is structured to encourage identification and installation of identified ECM’s.

An applicant’s contractor may perform a targeted or comprehensive energy assessment (audit), create a facility’s energy assessment report, and submit an Energy Assessment application with all required documentation and supporting calculations discussed on the application within 30 days of audit completion. DNREC will review and coordinate with the applicant on any additional information needed to evaluate the application for approval. If the application is approved, EEIF may award the customer up to the lesser of (1) 50% of the cost of their energy audit or (2) the audit caps of $5,000 for a targeted energy audit or $10,000 for a comprehensive energy audit (see 5.3.2 below for definitions of each audit type). An additional amount, up to $5,000 for targeted audits and up to $10,000 for comprehensive audits, may be available for applicants who implement measures identified through their assessment AND complete a Prescriptive, Custom or CHP EEIF project. To qualify for the additional audit fund reimbursement, the implemented ECM grant award must exceed that of the total energy assessment grant. 

Combined Heat and Power (CHP) Pathway Grants

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.

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.

General Limitations

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.

See Fund Guidelines for the most up-to-date information.