Are you ready to earn cash incentives while lowering your energy bills? Here at Dalkia Aegis, EDF Group, we’re working alongside Pepco to offer the Combined Heat and Power (CHP) Program to business customers in Maryland. It’s all part of an effort to reduce the use of electricity delivered through the power grid while saving customers money and meeting overarching energy savings goals.
CHP is an energy-efficient system that generates electricity and captures the heat to reuse in thermal energy production. That energy can then be employed for space heating, cooling and industrial processes to reduce your energy costs, increase your facility’s efficiency and reduce emissions. This process allows our systems to provide an operational efficiency of 85%, compared to traditional central power plants which only provide 33%.
CHP projects also help meet the EmPOWER Maryland energy savings goals while providing a resilient, 24/7 standby power option that benefits always-on businesses, including:
Here’s how it works: the Pepco CHP Program offers cash incentives to your business for a successful project installation. As indicated below, the amount of money is based on the total kilowatt (kW) power of the equipment you’re installing.
| System Size | Incentive per KW |
| First 50 kW | $2,000 |
| 51–200kW | $1,600 |
| 201–1,000kW | $1,200 |
| Over 1 MW | $800 |
So, if you install a system with 75 kW you would receive $2,000 for each of the first 50 kW ($100,000) and $1,600 each for the remaining 25 kW ($40,000). In this instance, your total incentive would be $140,000.
Payments for the CHP incentive program are doled out in three phases. You will receive 10% after all permits are received, all equipment is ordered and the project is fully committed to. The next 30% is paid out after construction when the system is in regular commercial operation. The final 60% is paid when the system has been in operation for 12–24 months, provided it lives up to the total kWh indicated on the program application—the final payment will be reduced if the system fails to produce up to those standards.
If you are a Maryland customer, you can learn more about applicable CHP systems and key program rules by contacting Pepco. Or, if you’re interested in learning more about whether CHP is right for your facility, please contact us for our expert input today.