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Combined Heat and Power Partnership

U.S. Department of Energy - Loan Guarantee Program

Date Last Updated11/16/2012
Incentive TypeLoan
State/FederalU.S./Federal
Incentive Administrator/Contact OfficeU.S. Department of Energy
Incentive Initiation Date1/1/2005
Incentive Size and Funding SourceThe Federal Energy Policy Act of 2005 authorizes the U.S. Department of Energy (DOE) to issue more than $10 billion in loan guarantees for energy efficiency, renewable energy and advanced transmission and distribution projects.
Eligible RecipientProject developers must have projects that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." The focus of this program encompasses energy efficiencies and reducing greenhouse gases (rather than focusing only on renewables), therefore CHP technologies can be assumed to be potentially eligible if a project meets the "new/improved" technology criteria.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaListed eligible projects include fuel cells and "Efficient electrical generation, transmission and distribution technologies," as well as renewables. Under the original authorization, loan guarantees were intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects.

The DOE actively promotes projects in three categories:
  • Manufacturing projects.
  • Stand-alone projects.
  • Large-scale integration projects that may combine multiple eligible renewable energies, energy efficiency and transmission technologies in accordance with a staged development scheme.
Other Incentive DetailsThe program has historically been designed to support larger scale renewable energy and biofuel projects. Previous applicants have mentioned some frustration in trying to apply this program to CHP, and have struggled with obtaining helpful guidance from DOE regarding eligibility and other program details.

The DOE periodically makes new solicitations available. Information about current and past solicitations can be found here .
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