How CHP Works
CHP—also known as cogeneration—simultaneously produces electricity and useful thermal energy from a single fuel source: natural gas. This integrated system captures and repurposes waste heat that would otherwise be lost, significantly improving overall efficiency.
- Reduces reliance on the electric grid by partially offsetting electricity purchases.
- Captures waste heat to produce steam or hot water for HVAC systems and domestic use.
- Absorption chillers can convert captured heat into cooling, supporting year-round climate control.
- Increases energy efficiency and reduces emissions compared to traditional separate heating and power systems.
CHP Efficiency & Key Benefits
- Superior Efficiency: Traditional power plants operate at about 40% efficiency, losing much of the energy during generation and transmission. CHP systems, by contrast, can achieve up to 85% efficiency by generating electricity on-site and using the waste heat—more than twice as efficient as grid-supplied electricity.
- Lower Operating Costs: CHP can significantly reduce both electricity and heating costs, making it an ideal solution for facilities with steady thermal demands and a smart investment in long-term economic sustainability.
- Resilience & Reliability: On-site generation enhances energy security by reducing dependence on the electric grid and providing backup power during outages.
- Environmental Benefits: By maximizing fuel use and minimizing waste, CHP systems lower overall energy consumption and greenhouse gas emissions.
Ideal Applications for CHP
CHP is a practical and effective energy solution for facilities with consistent heating and cooling needs, including:
- Hospitals, universities, and research institutions
- Hotels, office buildings, and fitness centers
- Industrial manufacturers, food processing facilities, and chemical plants
- Other commercial operations with year-round thermal loads
Incentives for Micro-CHP (mCHP) Systems
PGW has successfully supported customers in implementing 30+ CHP projects across Philadelphia. We're committed to helping businesses reduce energy costs, improve reliability, and contribute to a more sustainable city.
To support customers in adopting efficient energy solutions, PGW offers incentives for qualified micro-CHP installations. If your facility is considering CHP, contact our team to learn more about eligibility and program details: MajorAccounts.Hotline@pgworks.com
Curious about how CHP works or if it’s the right fit for your facility? We're here to help.
- Download our CHP Handout for a detailed overview
- Contact us at MajorAccounts.Hotline@pgworks.com to schedule a personalized evaluation