Combined Heat and Power (CHP)

Also known as “cogeneration”, CHP is self-production of electricity on-site, with beneficial recovery of the heat byproduct from the generator. Common CHP equipment includes engine-driven generators, microturbines, steam turbines, and fuel cells. Typical CHP customers include industrial, commercial, institutional, and multifamily residential facilities. CHP systems are used to produce a portion of the electricity needed by a facility some or all of the time, with the balance of electric needs satisfied by purchase from the grid.

NYSERDA’s CHP programs promote cleaner and more-efficient electrical power generation, heating and cooling for buildings, and industrial processes. The CHP programs assist in installing equipment at end-user sites to address power generation, availability, reliability, and quality needs of New York State energy customers while emphasizing energy efficiency and environmental quality. These projects are expected to result in direct energy, environmental, and economic benefits such as peak electric demand reduction, higher fuel-use efficiency, emissions reductions, and lower energy costs.

CHP Systems
50 kW to 1.3MW

For CHP Systems with an aggregate nameplate from 50 kW to 1.3 MW, the CHP Acceleration Program, PON 2568, provides incentives for the installation of pre-qualified and conditionally qualified CHP systems by approved CHP system vendors.

CHP Systems
Greater than 1.3MW

For CHP Systems with an aggregate nameplate greater than 1.3 MW, the CHP Performance Program, PON 2701, provides incentives that correspond to the summer-peak demand reduction (kW), energy generation (kWh), and fuel conversion efficiency.

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Last Updated: 08/14/2014