Distributed Generation Grant Program (DGGP)

March 21, 2005

Summary

The Distributed Generation Grant Program (DGGP) offers awards of up to $30,000 to enable businesses and institutions to install and study alternatives to central generation. Eligible technologies include fuel cells, microturbines, cogeneration, photovoltaics (PV), wind, biomass and landfill gas. Projects should be technically feasible for full-scale operation. Commercially proven projects are preferred. Eligible projects are those that demonstrate measurable energy savings in kWh, Btu or other units of measurement. Projects must be installed in Indiana and should comply with all applicable environmental, safety and legal regulations. In addition, projects must provide baseload power of at least 20 kW for the facility at which they are located, and should have a thermal efficiency of 50% or greater. Cogeneration projects are strongly encouraged. Grant amounts range from $5,000 to $30,000 and are determined according to the following formulas:

• If the average thermal efficiency of the distributed generation facility is greater than 50%, the eligible amount is equal to 20% of the equipment cost or $30,000, whichever is less.
• If the average thermal efficiency of the distributed generation facility is greater than 70%, the eligible amount is equal to 30% of the equipment cost or $30,000, whichever is less.
• If the distributed generation facility uses renewable energy, and/or low or zero-emissions technology fuel cells, the eligible amount is equal to 30% of the equipment cost or $30,000, whichever is less.

The DGGP is administered by the Indiana Office of Energy Policy. Interested parties should review the DGGP program guidelines and contact the industrial program manager to request an application.