A Combined Heat and Power (CHP) system can provide significant economic benefits for your business.

A CHP system can save you money on energy costs by generating thermal and electrical energy from a single fuel source. This guide will show you how to calculate the economic benefits of a CHP system for your business.

  • Determine your current energy costs. This includes all electricity, gas, and oil costs and maintenance costs for machinery such as pumps or chillers.
  • Determine the fuel type and costs for your CHP system. This can be natural gas, propane, biogas, or other fuels depending on your chosen technology for your CHP system and your needs.
  • Determine the efficiency of your CHP system. This refers to how much energy your system uses to generate a unit of power or heat output.
  • Determine the thermal output of your CHP system. This refers to the temperature difference between the source of the heat and the output of the heat.
  • Determine the electrical output of your CHP system. This refers to the voltage and current of the electricity produced by the engine generator in your combined heat and power plant.
  • Calculate the cost of energy generated by your CHP system. The cost of energy produced by a combined heat and power system is the sum of the fuel costs and the efficiency losses of the system, divided by the total energy production.
  • Calculate the cost of energy saved by your CHP system. The energy saved from using a combined heat and power system is the energy cost you would have paid if you had not used the combined heat and power unit at all, multiplied by the efficiency savings of the combined heat and power unit over time it was in use.
  • Calculate the payback period for your investment in a CHP system. The payback period is the years it will take to recover the total cost of installing a combined heat and power plant through energy savings alone, plus any interest charges incurred during the construction of the combined heat and power plant.
  • Determine the carbon footprint of your CHP system. A carbon footprint measures the environmental impact of energy use, considering the greenhouse gases released during the combustion process and the carbon intensity of the fuel used to generate electricity and heat.
  • Determine the air quality benefits of your CHP system. Air quality benefits refer to the number of pollutants that are reduced through the use of a cogeneration plant instead of other sources of energy such as fossil fuel power plants, coal boilers, or natural gas boilers.
  • Determine the water quality benefits of your CHP system. Water quality benefits refer to the environmental effects of wastewater generated from steam production systems and other industrial processes and the reduction of these impacts through using a cogeneration plant instead of other energy sources such as fossil fuel power plants.
  • Determine the solid waste benefits of your CHP system. Solid waste benefits refer to the environmental impacts of solid waste disposal from industrial processes and the reduction of these impacts through a cogeneration plant instead of other energy sources such as fossil fuel power plants and coal boilers.
  • Determine the social benefits of your CHP system. Social benefits are related to the economic, social, and cultural aspects of a community‚Äôs well-being, including job creation, access to energy services, and environmental preservation.
  • Determine the environmental benefits of your CHP system. Environmental benefits are related to reducing emissions of air pollutants and greenhouse gases due to using a cogeneration plant instead of other sources of energy such as fossil fuel power plants, coal boilers, or natural gas boilers.
  • Determine the security benefits of your CHP system. Security benefits refer to the ability of communities to maintain critical facilities and infrastructure in the event of a utility failure or other emergency event by switching to an alternative energy source independent of the utility grid.
  • Determine the resilience benefits of your CHP system. Resilience benefits are related to the ability to provide uninterrupted power and heat generation in emergencies or times of stress when demand exceeds supply or when the power grid fails due to natural events or other unexpected disruptions.
  • Determine the risk mitigation benefits of your CHP system. Risk mitigation refers to the ability of a community to reduce its exposure to risk by mitigating the impacts of severe weather events through increased energy efficiency and the use of distributed energy resources.
  • Determine the economic benefits of your CHP system. Economic benefits are related to cost savings that result from reduced electricity costs and improved energy efficiency.
  • Determine the political benefits of your CHP system. Political benefits are related to the political acceptability of a cogeneration project within a community and the support and approval it receives from the local community and government.
  • Determine the strategic benefits of your CHP system. Strategic benefits relate to the long-term ability of a community to maintain critical facilities and infrastructure in the event of a utility failure or other emergency event by switching to an alternative energy source independent of the utility grid.

Summary

A CHP system may be the answer if you’re looking for a way to reduce energy costs, increase your electrical output, and decrease your carbon footprint.

Contact us today to learn more about how we can help you calculate the economic benefits of installing a CHP system in your business. We’d be happy to walk you through each step of the process so that you can make an informed decision about whether or not this is the right solution for you.

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