Is My Facility a Good Candidate for CHP?

Considering Combined Heat and Power (CHP) to save money, enhance reliability, and benefit the environment?  The EPA CHP Partnership and Prince Law Offices can help.  Answering “yes” to any of the following questions indicates that the facility may be a good candidate for CHP:

  • Do you pay more than $0.07 per kWh on average for electricity (including generation, transmission, and distribution)?
  • Are you concerned about the impact of current or future energy costs on your business?
  • Is your facility located in a deregulated electricity market? (Hint: If in PA, it is.)
  • Are you concerned about the reliability of your facility’s electricity supply? Would there be substantial business, safety, or health impacts if the electricity supply were interrupted?
  • Does your facility operate for more than 5,000 hours per year?
  • Do you have thermal loads throughout the year (such as steam, hot water, chilled water, or hot air)?
  • Do you expect to replace, upgrade, or retrofit central plant equipment (such as generators, boilers, and chillers) within the next 3 to 5 years?
  • Do you anticipate a facility expansion or new construction project within the next 3 to 5 years?
  • Have you already implemented energy efficiency measures and still have high energy costs?
  • Are you interested in reducing your facility’s impact on the environment?

Visit Project Development Steps to learn more about the steps to CHP project development, from initial qualification to CHP system operation and maintenance.

CHP Spark Spread Estimator

The CHP Spark Spread Estimator (XLSM)(1 pg, 1 MB) is an Excel-based tool that helps evaluate a prospective CHP system for its potential economic feasibility. The CHP Spark Spread Estimator calculates the difference between the delivered electricity price and the total cost to generate power with a prospective CHP system.

The tool is intended to help CHP end users and other interested parties conduct an initial screening of potential CHP cost savings at a facility based on basic site data – annual electricity usage, annual thermal loads, average electricity and fuel prices, and annual hours of operation.

In addition to comparing a preliminary estimate of the cost to generate power on site (in terms of $/kWh) to the retail price of power at the site, the estimator provides an approximate comparison of energy consumption and costs with and without CHP.

Desire more specific assistance regarding CHP, renewable energy projects, energy law, or real estate law, contact attorney Jeffrey A. Franklin at Prince Law Offices, P.C.

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