1. NYSERDA’s CHP Program Dr. Dana Levy of NYSERDA:
NYSERDA CHP thought-leader since 1999.
Recipient of the USCHPA CHP Champion Award in 2007.
Recipient of the NECHPI CHP Champion Award in 2014.
Dana Levy, June 9, 2016
NECHPI Annual Meeting, Brooklyn

2. Axioms (we hold these truths to be self-evident)
Public policy objectives encourage the deployment of clean & efficient CHP
Axiom #2
The perpetual use of publicly-funded subsidies is a less-desirable mechanism than transforming the market to where it can be self-sustaining
Incentivizing CHP projects one-after-another has some transformative value in that it helps build competency in the marketplace -- and NYSERDA is committed to doing this -- but this alone is too passive an approach for achieving “market transformation”
The market needs genuine cost reductions in order to reach self-sufficiency
A well-crafted CHP incentive program is important, but is not enough

3. Objective Scale-up the market penetration of CHP
Expand cadre of competent solution providers active in NY
Temporary use of incentives to lubricate the market
Reduce project costs
Raise other sources of revenues
Provide consumer protection to yield good-quality projects
Mature, quality equipment, configured as an integrated system
Competent solution providers
Proper sizing of systems
Fair and equitable deals
Long-term relationships
Evolve to self-sufficiency
in absence of incentives

4. Consumer Protection

5. Consumer Protection

6. Consumer Protection

7. Consumer Protection Guidelines have been created for:
Multifamily Residential (master-metered)
Assisted Living Facilities
Hospitals
Hotels

8. Previously (sunsetted on 2/29/2016)
CHP Acceleration Program (PON 2568)
Catalog-based rebate program
Systems 50 kW through 1.3 MW
CHP Performance Program (PON 2701)
Pay-for-performance-based program
Systems over 1.3 MW

9. Now The CHP Program $21 Million
PON for projects (nyserda.ny.gov/pon2568)
RFI for vendors (nyderda.ny.gov/rfi2568)
Currently $21 Million available through 2018
$21 Million

10. The CHP Program
No minimum size -- currently recruiting vendors of microCHP
No maximum size until end of Max size 3 MW starting in 2017
Projects over 3 MW eligible for not more than $9 of the $21 Million pool
Catalog approach for any size system
Vendor centric -- vendor/module must be in catalog
Single module, or multi-modules integrated into a system
NYSERDA contracts with the vendor
Quick NYSERDA technical review
Custom design option for systems 1 MW and larger
Project centric -- any contractor/equipment not in catalog
NYSERDA will contract with site/developer/ESCO/etc.
Longer NYSERDA technical review
Identical
incentive,
identical
payout
structure,
regardless of
approach

11. The CHP Program Catalog Approach -- vs -- Custom Design
Standardization with Personalization

12. The CHP Program Catalog Approach -- vs -- Custom Design
Standardization with Personalization

13. The CHP Program Catalog Approach -- vs -- Custom Design
Standardization with Personalization

14. The CHP Program Catalog Approach -- vs -- Custom Design
Standardization with Personalization -- vs -- Customization

15. The CHP Program In general, Program rules follow the former
CHP Acceleration Program
Clean and efficient
Performance data collection
Full system single-point responsibility
5-year service plan
“Stand-alone” operability… except systems 50 kW and smaller
… except Steam Turbines or ORCs of any size
All payments as milestone-based lump-sum payments
Bonuses (critical infrastructure, target zones)
Clean gaseous fuels: Pipeline natural gas, CNG, propane

16. The CHP Program New Rules
Going forward, site MUST pay SBC surcharge on the electric bill.
Incentive is calculated based on CHP System size, not Catalog Module size
Awarding of incentives will decrease* to:
95% of original, for new applications received in full on or after 9/1/2016
90% of original, for new applications received in full on or after 3/1/2017
85% of original, for new applications received in full on or after 9/1/2017
80% of original, for new applications received in full on or after 3/1/2018
Projects will be paid their awarded incentive rate regardless of operational date
There is now an Incentive Calculator available for estimation purposes
When we soon update the Catalog, the incentive amount will be removed from the individual catalog pages
Cap is now $2.5 Million per project (inclusive of bonuses)
* Incentive decreases for microCHP (50 kW and smaller) still to be determined

17. The CHP Program New Rules, continued
Modules 50 kW and smaller can be black-start capable or non-black-start
If non-black-start, the incentive will be reduced to ⅔ that of a black-start capable module of the same size
It is permissible to mix and match black-start/non-black-start modules within one System as long as the total System size is 50 kW or less
Back-pressure Steam Turbines and waste-heat driven ORCs are now eligible, any size can be black-start capable or non-black-start

18. Comprehensive Support for the Marketplace
Incentives help get projects built, which provides learning that helps reduce costs, and attracts solution providers to focus on NYS marketplace -- but this alone is not enough.
In addition, NYSERDA further helps reduce costs by:
Customer acquisition
Branding
Technical assistance via Outreach Agent
And, NYS and NYSERDA are also striving to help raise alternative sources of revenues:
REV
Monetizing the value of resiliency

19. ERS Inc. is NYSERDA’s Agent for CHP Technical Outreach
ERS is available to help guide customers through the process.
ERS can provide technical support, answer questions, etc. to customers without their own resources.
Gita Subramony
(212) x292

20. Market Transformation is a Journey
How will we know when we’ve arrived at a market that can flourish in the absence of subsidies?

21. Market Transformation is a Journey
How will we know when we’ve arrived at a market that can flourish in the absence of subsidies?

22. Thank You! www.nyserda.ny.gov/chp NYSERDA 17 Columbia Circle
Albany, NY 12203
Dr. Dana L. Levy, D.Eng., P.E.
(518) x 3377
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce their reliance on fossil fuels. 
NYSERDA professionals work to protect our environment and create clean-energy jobs.
NYSERDA has been developing partnerships to advance innovative energy solutions in New York since 1975.