Combined Heat and Power

As of January 1, 2025, the Combined Heat and Power program is no longer accepting applications. The program has been discontinued due to regulatory changes for EmPOWER Maryland programs. If you are a customer with ongoing projects, please continue to work with your point of contact to complete the project and receive your incentives.

Combined Heat and Power (CHP) systems, both traditional and new micro systems, are a clean and efficient approach to generating power and thermal energy from a single fuel source. Constructed on-site near a building, campus or industrial processes, CHP systems capture thermal energy from hot exhaust gases for use in space heating, cooling, domestic hot water, dehumidification and process heating.

Installing one of these systems can help you improve operating efficiency, cut energy costs and reduce emissions. And, you can receive incentives up to $2.5 million for installing a CHP system at your facility.

Learn how CHP can work for your business

What is CHP?

contractor

CHP systems involve installing a generator at your facility that produces electricity, heating, and cooling. 

Compared to traditional electrical generation units, CHP systems are highly fuel-efficient. Traditional power sources waste about 67% of their fuel, but CHP units only waste about 25% of their fuel. 

CHP systems generate 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. 

In the past, CHP systems were predominantly for large facilities, but new micro systems allow smaller organizations to benefit from a CHP system.

Is CHP Right for My Facility?

With the availability of new micro systems, CHP projects are cost-effective for nearly all facilities. Facilities that often benefit from these projects include:

  • Hospitals and nursing homes
  • Farms
  • Multifamily developments
  • Fitness centers, especially those with swimming pools
  • Hotels
  • Universities
  • Three-shift industrial plants

Get our expert input on whether CHP is right for you by contacting us or one of our CHP developers.

 

 

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, click here.

The EmPOWER Maryland charge funds programs that can help you reduce your energy consumption and greenhouse gas emissions and save you money. Since the inception of the EmPOWER Maryland program in 2008, the programs have saved $14.5 billion on installed measures at a cost of $4.1 billion. In addition to new program costs, this charge includes paying off the uncollected costs that were accrued over time by programs required by the EmPOWER statute and authorized by the Commission. In accordance with House Bill 864 the uncollected amounts will be fully paid by the end of 2032.