Combined Heat & Power
Micro Combined Heat and Power Systems (micro-CHP) systems are highly efficient natural gas systems that produce both electricity and heat at the same time. Because they produce both heat and electricity simultaneously they are also known as "co-generation" systems. Less common are systems that produce electricity, and that can be used to cool as well as heat--so called "tri-generation" systems.
Pricing, Financing & Benefits
Average residential systems may cost between $15,000 to $40,000:
- Equipment costs range from $10,000 - $25,000;
Installation costs comprise the balance of the total system cost.
Tax Incentives and Rebates
Micro-CHP systems DO NOT qualify for Federal Investment Tax credits.
Some states and utility companies offer:
- Rebates as part of their energy efficiency programs; and
- Subsidized financing plans.
Savings, Benefits and Returns
Micro-CHP systems cost at least $6,000 more than high efficiency heating systems, but have the added benefit of producing electricity that will reduce the owner's electric bill.
There are several options available to you to finance an investment in a CHP system:
- Home equity or other collateralized loans;
- Subsidized loans;
- Peer-to-Peer loans ;
- Specialized loans.
For a detailed discussion, refer to our
search for banks and leasings companies
that provide financing.