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Custom Efficiency Projects

Maine businesses, nonprofits, institutions and governments are eligible for funding for electrical and thermal energy efficiency projects through Efficiency Maine’s Commercial and Industrial (C&I) Custom Program.

Eligible projects may include process improvements designed to improve efficiency, heat recovery and custom heat pump systems, HVAC equipment and controls, high efficiency compressed air systems, installation of VFDs on motors, chillers and pump upgrades. For a list of previously awarded custom projects, click here.

Eligible Projects

  • Projects must achieve a benefit-to-cost ratio greater than 1, as per Efficiency Maine’s benefit-cost test
  • A measure (or set of measures) that increase the end-use energy efficiency compared to a baseline, and qualifies for an incentive of at least $10,000. For facilities with peak demands less than 400 kW, measures must qualify for an incentive of at least $5,000.

Ineligible Projects

  • Measures that are eligible for Efficiency Maine’s C&I Prescriptive Incentive Program. This includes the majority of lighting measures, with a few specific exceptions.
  • Projects that have a simple payback under one year (after factoring in the Efficiency Maine incentive).
  • Projects that involve measures required by state or federal law or local building or energy codes, or are deemed by Efficiency Maine to be standard industry practice measures.
  • Projects for which the customer (or its affiliate) has made binding commitments to proceed prior to the official award of funding under this Custom Program.
  • Measures that rely solely on human behavior changes or facility maintenance.
  • Projects for customers that do not have an account with a Maine electric or fuel utility.
  • Feasibility studies.
  • Power quality, power factor, and power conditioning projects.
  • Projects that do not result in energy reductions. An exception is made for measures that are intended to expand facility use or production and will result in an overall energy use reduction when compared to an alternative code-compliant, baseline alternative.
  • Fundraising seed money for projects to be completed and funded subsequently.

Funding Overview

  • Funding levels will range from a minimum of $5,000 to a maximum of $1,000,000 per facility up to 50% of the total project costs.
  • Incentive awards are capped based on the magnitude of the validated annual reduction in grid-supplied energy (kWh/year) and/or fuel savings (MMBtu/year). Incentives will not exceed $0.30 per kWh of validated annual reduction in grid supplied electricity plus $25 per MMBtu of annual fuel savings.
  • Heat recovery systems and custom beneficial electrification projects are eligible for $50 per MMBtu of validated annual fuel savings.
  • For retrofits of existing equipment, applicants must provide a minimum 50% cost share for the project.
  • For new construction or projects that are deemed a ‘lost opportunity’ by the Trust, such as replacement of a piece of equipment that is at or near the end of its useful life, applicants must provide a minimum of 25% of the incremental cost as measured between the efficient alternative and the industry standard.
  • Projects with an estimated incentive over $200,000 will require a formal contract with the Efficiency Maine Trust.
  • Projects with an estimated incentive below $200,000 require that participants agree to the Custom Program’s Terms and Conditions.
  • Efficiency Maine will consider new applications until the available program funding is exhausted.

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