Savings & Energy Center » Business incentives » Combined heat and power

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Cogeneration / Combined Heat and Power (CHP)

Generating electricity and thermal energy onsite

Cogeneration / Combined Heat and Power (CHP) is a great opportunity to save money and increase your system reliability. Typically, it can make sense for businesses that have high annual hours and a continuous thermal load to take advantage of the thermal energy produced. Examples include hotels, hospitals, nursing homes, pools, and health facilities.

What you get

PSE will incentivize cogeneration / CHP projects that meet minimum efficiency requirements and are cost-effective. The incentives are based on the following:

  • $0.30/kWh on first year kWh savings up to 70% of the incremental cost compared to PSE's combined cycle power plant system for cost-effective projects.
    • Baseline system, as identified in PSE’s 2015 Integrated Resource Plan, has a capital cost of $1,256/kW and a baseload heat rate (HR) of 6,798 BTU/kWh.
    • Savings calculated based on annual kWh output multiplied by [(1-net HR)/baseload HR)], where net HR is calculated as by the net gas input divided by the electricity generated.
    • Guidelines per WAC 480-109-060.13.a (

To be connected with an EME near you, call an Energy Advisor at 1-800-562-1482, Monday through Friday from 8 a.m. to 5 p.m.

How to qualify

Incentive example

How to apply