The Department of Natural Resources and Environmental Control (DNREC) provides grants through the Energy Efficiency Industrial (E2I) program to help large-scale energy users make their operations more energy efficient through innovative upgrades.
Custom incentives are based on calculated energy and demand savings, as well as cost effectiveness, and are limited by total project cost. This option allows for the greatest flexibility and creativity in design by providing an incentive on a facility-wide scale. The projects qualifying under this program are generally more complex and aggressive measures that permanently raise efficiency levels beyond that of standard equipment.
Subject to the availability of funds, applicants must propose a project that results in annual energy savings. Grantees will receive $0.14 per first year annual kilowatt-hour saved, $500-$700 per peak kilowatt saved, and $5 per first year annual MMBtu saved, up to 30 percent of total project costs, whichever is less. Program funds are limited and must be reserved prior to beginning the project to ensure availability.
Custom Improvements Grants apply to more complex or one-of-a-kind measures that go beyond the equipment funded by Prescriptive Improvement Grants. Custom incentives defray a significant portion of the project costs for high efficiency equipment. They are based on incremental cost, calculated energy and demand savings of retrofit projects, cost effectiveness, and are limited by total project cost. This option allows for the greatest flexibility and creativity in design by providing an incentive on a facility-wide scale or on targeted assessments that save energy. The projects qualifying under this program are generally more complex and include aggressive measures that permanently raise the efficiency levels of standard equipment.
Grant applicants for E2I are required to complete at least 5 measures in their custom project.
All projects require approval prior to purchasing and installing the equipment. Complete eligibility details, terms and conditions, and program requirements, will be found in Program Guidelines and Operational Procedures to be available here starting on November 6. Projects that bring the building up to minimum energy code requirements will not be accepted.
The following projects may be eligible for custom incentives:
Chillers and boilers
Compressed air systems
Demand control ventilation
Energy management systems
Lighting Improvement Grants must be applied for separately if the applicant is pursuing lighting upgrades as one of the components in their custom project.
Lighting improvement grants must be paired with a full custom application, and is NOT included in the required 5 energy conservation measures of a custom project. Standalone lighting improvement projects will not be considered.
The State Energy Program Revolving Loan Fund can be used to supplement an EEIF grant project or as a stand-alone loan for installation of energy efficiency measures. Applicants must have an energy audit that includes a detailed description and documented energy savings of the proposed project. Applicants can be from non-residential, commercial, or industrial sectors. Underwriting is done in-house by DNREC, allowing for greater flexibility in loan terms and conditions. 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. Questions on the revolving loan application can be directed to Edward.Synoski@delaware.gov.