Federal rebate program gives boost to fuel cell technology

The Office of the Deputy Under Secretary of Defense, Environmental Security established a competitive, cost-shared, near-term Climate Change Fuel Cell Program in 1995. The incentive program's overall goal is to encourage the use of fuel cell systems as a viable power option.

The program provides up to $1,000 per kilowatt of powerplant capacity, not to exceed one third of the total program cost (capital and installed costs, pre-commercial operation). To date, the program has granted a total of $30.2 million.

The rebate program made demonstrations and field tests possible, brought down manufacturer costs through increased production and encouraged financial project support from other supporting agencies. Nearly all the fuel cell projects receiving grants would not have been feasible without support from the rebate program.

To qualify for the rebate, the applicant must demonstrate a commitment to purchase and use fuel cell powerplants with a rated capacity of at least 3 kW.

The fuel cell vendor must cover the unit's operation with a full one-year commercial warranty. Vendors, manufacturers and developers are not eligible for the program.

Projects must comply with all National Environmental Policy Act and other regulatory requirements. All fuel cell technologies are acceptable with no restrictions on fuel types. Projects are selected to represent diverse sizes, applications, fuels and locations, with priority given to projects sited at DOD installations.