There are numerous reasons why a facility management team would want to explore CHP Energy Solutions, or Cogen Power Solutions, for their organization.

Click here, or on the image below, to view the many benefits of CHP.

Benefits of CHP

Efficient Use of Energy

CHP energy solutions, or cogen power solutions, achieve energy efficiencies of greater than 75-80%. Compare this to conventional electric systems at only 33-39% efficiency, and conventional boiler systems at only 65-75% efficiency, and it’s easy to see where the energy savings can start piling up.

Reliability, Redundancy, and Resiliency

Because CHP energy solutions generate electricity, heating and cooling on-site, they provide for much greater energy reliability. This removes instabilities from the power grid system, and oil or propane deliveries. Also, a cogen power solution can be designed to provide energy redundancy to meet your facility’s unique needs. Because system “down-time” can be extremely costly to many organizations, particularly in the manufacturing or entertainment businesses, this resiliency can be a huge risk-mitigation factor.

Financial/Economic Benefits

The increased energy efficiency of a CHP energy solution translates quickly and directly to huge savings in energy expenses. Just the savings in the prevention of system down-time can be quite significant for many organizations. CHP projects typically have payback periods that make them an easy sell when competing with other projects for capital expenditures.

Utility Cost Stabilization

By bringing energy generation on-site, a facility stabilizes its energy usage – i.e. no longer using more propane or natural gas in the winter to heat, and more electricity in the summer to cool. This stabilization takes a good deal of uncertainty out of planning for energy costs. And because you are generating your own power, you have much less exposure to the risk associated with constantly changing electricity prices.

Reduce Your Carbon Footprint

CHP energy solutions can achieve efficiencies of greater than 80%, as compared to the traditional separate heat and power systems (SHP) that only achieve an average of 51% efficiency. That gain in efficiency is good not only for your organizations pocket, but also for the environment.

Supports “The Triple Bottom Line”

The triple bottom line (often refer to as TBL or 3BL) involves concern for not only the financial bottom line, but also for social and environmental impacts. A CHP or cogen power solution can help your company to achieve objectives related to all three areas.

If your organization is looking to save money on energy costs, gain greater energy stability and decrease your impact on the environment, it may be time to look into CHP. “This was one of those rare opportunities we had to look at a very sensible ROI type project that makes sense for us both financially and environmentally”, said David Walker, VP of Finance and planning, at Messiah College, who partnered with UGI Performance Solutions to design and build a CHP solution on their Pennsylvania campus. “Our board of trustees characterized it as an absolute no-brainer”.

Who are good candidates for CHP?

Good candidates for CHP are organizations that have a high coincident use of electricity and some form of thermal energy such as hot water, chilled water or steam. These organizations can include colleges, hospitals, industrials, commercial and recreational facilities.

According to Gary Fechter, General Manager of UGI Performance Solutions, “UGIPS models a client’s energy usage and then uses available prime-mover and thermal utilization technologies to find the best economic fit for each site. We perform 100 percent of the conceptual design to include detailed technical and financial modeling. By utilizing a design-build model and by self-performing the installation with our mechanical (Berkshire Mechanical) and electrical (Denny’s Electric) divisions, UGI HVAC Enterprises streamlines the installation. This helps to keep project costs down and makes the IRR more attractive”.

To make the projects even more attractive, there are tax benefits and grants that may be available to you. According to the CHP Partnership, the first 15 megawatts (MW) of CHP property qualifies for a 10% investment tax credit (ITC), and CHP qualifies for a five-year depreciation under the Modified Accelerated Cost Recovery System (MACRS). The State of Pennsylvania has been instrumental in helping to get some of these recent green initiatives off the ground. UGIPS has been fortunate to be able to assist its clients in receiving 5.4 million dollars in state grants, loans and utility rebates to further CHP projects.

Diagram of the energy savings from CHP efficiency

If you want to learn more about why CHP and see all of its benefits, including the amount of money your business will save, please click this link to see our latest infographic!