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Combined Heating & Power

Nearly doubles operational efficiency
Natural Gas Innovation > Combined Heating & Power

Combined heating and power (CHP) systems generate electricity and useful thermal energy in a single, integrated system.

Heat that is usually wasted in conventional power generation is recovered as useful energy, eliminating losses that occur when heat and power are generated separately. CHP systems can operate at levels as high as 80 percent, compared to 45 percent with conventional methods.

Most CHP projects have a natural gas engine or turbine radiating heat that is captured and used in a heating application. The heat is then used to drive an absorption cooling machine that produces cooling. The natural gas engine or turbine is coupled with an electric generator to produce electric power.

Advantages of CHP

CHP can save facilities considerable money on their energy bills due to its high efficiency, and it can provide a hedge against electricity cost increases.

Because less fuel is burned to produce each unit of energy output and because transmission and distribution losses are avoided, CHP reduces emissions of greenhouse gases and other air pollutants. CHP systems offer considerable environmental benefits when compared with purchased electricity and thermal energy produced on site. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel to produce the same amount of energy. Because less fuel is combusted, greenhouse gas emissions, such as carbon dioxide (CO2), as well as other air pollutants like nitrogen oxides (NOx) and sulfur dioxide (SO2), are reduced.

Unreliable electricity service represents a quantifiable business, safety, and health risk for some companies and organizations. CHP is an on-site generation resource and can be designed to support continued operations in the event of a disaster or grid disruption by continuing to provide reliable electricity.

CHP systems can be designed to continue operating in the event of grid outages to supply continuous power for critical functions. And, with natural gas being an abundant local resource, a long, sustainable future supply is ensured.

Ideal Candidates for CHP Systems

CHP systems are ideal for large, energy-intensive commercial and industrial businesses with high thermal loads, including:

  • Chemical
  • Refining
  • Ethanol
  • Pulp and paper
  • Food processing
  • Glass manufacturing
  • Colleges and universities
  • Hospitals
  • Prisons
  • Military bases
  • Hotels
  • Casinos
  • Airports
  • High-tech campuses
  • Large office buildings
  • Nursing homes
  • District energy systems
  • Wastewater treatment facilities
  • K–12 schools
  • Multifamily housing
  • Planned communities
Save with CHP Rebates

If you are a current customer of UGI Gas on Rate Schedule DS or LFD, or a new UGI Gas customer converting to natural gas on Rate Schedule DS or LFD, you qualify for CHP rebates.

Rebates are payable at $750 per kW on equipment installed, up to 50% of the project cost with a $250,000 maximum per customer.

To learn more about CHP, contact your UGI Sales rep or email savesmart@ugi.com.

Disclaimer: Customers must meet all program requirements. UGI reserves the right to make a final determination regarding customer eligibility and also reserves the right at any time to extend, modify or terminate this program. Rebates are subject to funding availability.