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Innovation Grant Programs

Get money back when upgrading to efficient natural gas technologies
Natural Gas Innovation > Innovation Grant Programs

Natural Gas Pipeline:
gas pipeline
Pipeline Investment Program (PIPE)

Receive grants up to one million dollars to construct the last few miles of natural gas distribution lines to business parks, existing manufacturing and industrial enterprises. The goal is to create new economic base jobs while providing natural gas for residents.

Program is available to economic development organizations, businesses, municipalities, hospitals, and school districts.

Learn more and apply.

Natural Gas Vehicle Fleets:
Alternative Fuels Incentive Grant Program (AFIG)

The Alternative Fuels Incentive Grant Program offers grants to help offset the costs of upgrading vehicle fleets to compressed natural gas (CNG) through retrofit or purchasing new, as well as purchasing and installing fleet refueling equipment.

This program is available to school districts, municipal authorities, political subdivisions, nonprofit entities, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth.

Learn more and apply.

School buses
Onroad Rebate Program: $12 Million Available

Repower or replace your older diesel engines or vehicles with natural gas vehicle fleets, and get a percentage of the total cost back.

Vehicle classes that are eligible include Class 4-7 local freight trucks with engine model years 1992-2009, drayage trucks with model years 1992-2009, and Class 4-8 school or shuttle buses with engine model year 2009 or older. Application period through 2019 or until funds are exhausted.

Learn more and apply.

Fleet of blue 18 wheeler semi trucks
Class 8 Truck and Transit Bus Grant Program:
$6.4 Million Available

Repower or replace your older diesel engines or vehicles with natural gas vehicle fleets, and get a percentage of the total cost back.

Vehicle classes that are eligible include Class 8 local freight trucks with engine MYs 1992-2009 and at least three years of useful life and Class 4-8 transit buses with engine MY 2009 or older that have reached their useful life limit of at least 12 years or 500,000 miles on the odometer. Application deadlines are May 10, 2019 and September 23, 2019.

Learn more and apply.

Combined Heat and Power (Cogeneration) Systems:
Combined Heat and Power (CHP) Bonus Depreciation Tax Incentive

This Bonus Depreciation (Section 179) allows for 100% depreciation of CHP capital costs in the first year, in addition to the 10% investment tax credit (ITC) you could receive on your tax return the first year after installation.

Learn more about how this bonus can get 1/3 of the cost of your new CHP capital costs back in the first year of operation.

chp system
Alternative Clean Energy (ACE) Program

Get financial assistance for the utilization, development and construction of alternative and clean energy projects, including combined heat and power systems.

This program is currently closed, but you can start to plan for 2020. Businesses, economic development organizations, and political subdivisions are eligible for the loan or grant.

Learn more and apply.

agriculture technology concept man Agronomist Using a Tablet Int
Rural Energy for America Program: Renewable Energy & Energy Efficiency

Get guaranteed loan financing and grant funding energy efficiency improvements, such as combined heat and power systems. Program is available to agricultural producers and rural small businesses in rural areas.

Learn more and apply.

UGI Save Smart CHP
UGI Save Smart Program: CHP Rebate

Rebates are payable at $750 per kW on equipment installed, up to 50% of the project cost with a $250,000 maximum per customer.

Current or new UGI natural gas customers in Pennsylvania on Rate Schedule DS or LFD are eligible for these rebates. To learn more about CHP, contact your UGI Sales rep or email savesmart@ugi.com.

Rebates are available to UGI natural gas customers in Pennsylvania with Rate Schedule DS or LFD. Customers must meet all program requirements. UGI reserves the right to make a final determination regarding customer eligibility and also reserves the right at any time to extend, modify or terminate this program. Rebates are subject to funding availability.