A Qualifying Facility is a category of electric power producers established under the Public Utility Regulatory Policy Act of 1978 (PURPA) to encourage the diversification of the US domestic energy market. QFs are a special class of generating facility defined by law and categorized as either a cogeneration facility or small power production facility.
Reference Definition by Energy.gov/eere: Qualifying Facility is a category of electric power producer established under the Public Utility Regulatory Policy Act (PURPA) of 1978, that includes small-power producers (SPP) who use renewable sources of energy such as biomass, geothermal, hydroelectricity, solar (thermal and photovoltaic), and wind, or cogenerators who produce both heat and electricity using any type of fuel. PURPA requires utilities to purchase electricity from these power producers at a rate approved by a state utility regulatory agency under Federal guidelines. PURPA also requires power providers to sell electricity to these producers. Some states have developed their own programs for SPPs and utilities.
Related Definitions in the Project: The Plant and Process Unit
