Is My Facility a Good Candidate for CHP?

Answering "yes" to any of the following questions indicates that the facility may be a good candidate for CHP:

  • Are you concerned about the reliability of your facility's electricity supply?
  • Would there be substantial business, safety, or health impacts if the electricity supply were interrupted?
  • Are you interested in reducing your facility's impact on the environment?
  • Are you concerned about the impact of current or future energy costs on your business?
  • Do you have thermal loads throughout the year (such as steam, hot water, chilled water, or hot air)?
  • Does your facility operate for more than 5,000 hours per year?
  • Do you expect to replace, upgrade, or retrofit central plant equipment (such as generators, boilers, and chillers) within the next 3 to 5 years?
  • Do you anticipate a facility expansion or new construction project within the next 3 to 5 years?

Facility managers or end-users who are considering CHP as an energy solution can use EPA’s CHP Screening Tool as a first step in determining whether CHP is cost-effective. DOE’s CHP Technical Assistance Partnerships (TAPs) can also provide technical assistance and guidance through the project development process.

Visit CHP Project Development Steps to learn more about the steps to project development, from initial qualification to CHP system operation and maintenance.

CHP Screening Tool

A preliminary assessment of the economic feasibility of CHP is the first step in evaluating whether CHP may be right for a specific facility. The CHP Screening Tool is an Excel-based tool that can be used to provide this initial assessment. The tool is intended for users who are in the early stages of exploring a project. It uses annual energy consumption figures—whether historical load data for existing buildings or modeled loads for new buildings—to estimate the size and economic performance of a potential CHP system for the facility using cost and performance data for commercially available CHP systems.

Based on a small number of readily available user inputs, the tool provides estimates of the payback period and "CHP spark spread" (i.e., the difference between the all-in electric rate paid by the facility before CHP, and the effective electric rate paid with CHP), as well as estimates of CHP equipment and installation costs and energy cost savings, for a CHP system sized in accordance with the subject facility’s energy loads. By using this tool during the project exploration stage, project teams will gain a better understanding of CHP and CHP's potential value for their facility.

CHP Resource Center

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Last updated on January 16, 2025