Custom Distributed Generation Projects

Efficiency Maine's Commercial and Industrial (C&I) Custom Program provides funding opportunities for distributed generation (DG) projects developed by Maine businesses, nonprofits, institutions, and governments. Distributed generation projects are behind-the-meter generation systems designed to reduce consumption of grid-supplied electricity while meeting Efficiency Maine's cost-benefit analysis requirements.

Eligible projects must demonstrate an operating efficiency of 60% or greater and achieve annual kWh reductions of at least 36,000 kWh. Projects must include a dedicated meter providing 15-minute interval energy data to Efficiency Maine. Combined heat and power (CHP) projects represent the most common type of distributed generation project completed through this program. Ineligible projects include those with benefit-to-cost ratios less than 1, simple payback under one year (after incentive), grid-connected net metering projects, feasibility studies, and power quality or power conditioning projects.

Funding levels range from a minimum of $10,000 to a maximum of $1,000,000 per facility, covering up to 50% of total project costs. Incentive awards are capped at $0.28 per kWh of validated annual reduction in grid-supplied energy. Applicants must provide a minimum 50% cost share and execute a formal contract with the Efficiency Maine Trust. Efficiency Maine will continue accepting new applications until available program funding is exhausted.

Applicants should review the Distributed Generation Project Application Cover Sheet, Program Opportunity Notice (PON-EM-002-2026-DG-V1), Distributed Generation Technical Analysis Checklist, and Distributed Generation Project Application Checklist. Free scoping audits are available for eligible businesses, and Technical Assistance Study incentives support customers needing additional outside assistance. For more information, contact Efficiency Maine at 1-866-376-2463 or custom@efficiencymaine.com.