Combined Heat and Power

For a Sustainable Energy Future

Combined Heat and Power (CHP) can reduce your energy costs, increase the efficiency of your facility’s electricity and heating systems, and reduce emissions. It is beneficial to a wide range of commercial facilities especially those needing large quantities of hot water. The recovered waste heat in CHP can be used for space heating or cooling, water heating, refrigeration and dehumidification.

What is CHP?

In many forms of traditional electric generation, much of the energy is lost because there is nowhere to use excess heat that is released in the process. Combined Heat and Power (CHP) installs a generator at your facility. Heat from the generator can then be recovered and used at your facility, offsetting other heating or providing cooling, for a net savings in energy cost. CHP is highly fuel efficient, compared to alternate options,

To be more technical, CHP is the sequential generation of electric and thermal energy from a single fuel source such as natural gas. The CHP engine-driven system, when coupled with a generator, produces electricity. The engine also produces waste heat via exhaust gas, which can be captured to produce steam, hot water for heating, or for use in commercial or industrial facilities.

Is CHP Right for My Facility?

Combined Heat and Power (CHP) units are used by larger buildings/facilities. A building or facility which uses a large amount of electricity and heat consistently throughout the year, such as a hospital, is an ideal candidate, though smaller buildings like hotels and apartment buildings are also candidates.

Get our expert input on whether CHP is right for you by contacting us.

Cash Incentives

Through the Pepco Combined Heat and Power Program, we offer cash incentives to Maryland business customers:

Incentive Levels:

  • $1,200 per kW of Nameplate Capacity, up to 1,000 kW
  • Plus $900 per kW over 1,000 kW
  • Capped at $2,500,000 per project
CHP Program Incentive Payments Example:

Small Systems: Eligible for $1,200 per kW of Nameplate Capacity, up to 1,000 kW

  • Example: 600 kW system:
  • $1,200 x 600 kW = $720,000
Large Systems: Eligible for $1,200 per kW for first 1,000 kW plus $900 per kW of Nameplate Capacity above 1,000 kW

  • Example: 1,200 kW system:
  • $1,200 x 1,000 kW = $1,200,000
  • + $900 x 200 kW = $ 180,000
  • Total = $1,380,000

More on CHP

The best way for you to discover more about CHP is to contact us. You can also take a look at this PDF to find out more.

EmPOWER Maryland programs are funded by a charge on your energy bill. EmPOWER programs can help you reduce your energy consumption and save you money. To learn more about EmPOWER and how you can participate, go to