Combined heat and power

Recycle waste heat and generate power on-site. Combined Heat and Power (CHP) — also known as cogeneration — captures waste heat from power generation to use for heating and cooling, improving total system efficiency.
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Two CHP options, same high efficiency

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Commercial and industrial CHP

Ideal for manufacturing plants, hospitals, campuses and other large facilities with steady energy demands.

  • Uses natural gas or biomass to generate electricity and heat.
  • Can achieve up to 80% system efficiency*.
  • Reduces energy costs and carbon emissions.
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Micro CHP

Micro CHP (mCHP) is sized for smaller buildings like schools, hotels and multifamily properties.

  • Fits into existing mechanical rooms.
  • Operates in the 5-100 kW range.
  • Can reach 90%+ efficiency and cut energy use by 40% or more.

Get rebates up to $500,000

CHP and mCHP rebates are based on therms saved**. We can help calculate eligibility and maximize your incentive.

Engineering study funding

Get up to $20,000 to offset the cost of an engineering study, investment-grade audit or process evaluation. All applications must receive preapproval before the study begins.
Engineering Study Program Application

Determining if CHP or mCHP is right for your facility

You may be a good candidate if you have:

  • High year-round heating or hot water demand.
  • Long operating hours.
  • Centralized heating systems running on natural gas.
  • High energy costs or carbon reduction goals.
  • Interest in backup power during grid outages.

* Source: U.S. EPA Combined Heat and Power (CHP) Partnership www.epa.gov/chp
** Energy savings are calculated using methodology outlined in the Illinois Technical Reference Manual (TRM). Rebates may not exceed 50% of total project cost.

Resources

Find resources tailored to Combined Heat and Power, including fact sheets, case studies, and reports that show how this technology saves energy and money.

Want to see more? Check out the full Resources page for additional tools and information.

Peoples Gas and North Shore Gas Custom Rebate Program Application

Custom rebates are available to help influence and implement projects that otherwise would not be completed, or to complete projects sooner than currently or previously scheduled.

Peoples Gas and North Shore Gas Engineering Study Program Application

The Engineering Study provides customers up to $20,000 to offset the costs of on-site engineering support to perform an implementation study, investment-grade audit or process evaluation required for large custom, capital-intensive energy saving projects.

Micro Combined Heat and Power Fact Sheet

Micro combined heat and power (mCHP) systems in the 5–100 kilowatt (kW) range are ideal for building owners seeking cost-effective solutions to save natural gas and electric energy.

Micro Combined Heat and Power Case Study

The Peoples Gas and North Shore Gas Energy Efficiency Programs can work with you to save money on natural gas and electric bills with micro combined heat and power (mCHP).

DOE Packaged CHP eCatalog

The CHP eCatalog is a national searchable web-based catalog that provides engineers with DOE recognized CHP suppliers and technical data for drop-in/packaged CHP systems.

Accelerating Decarbonization with Gas Heat Pumps

Gas heat pumps are an innovative technology that supports equitable decarbonization and grid reliability. They offer superior energy efficiency (over 100%), leading to lower energy bills and significant greenhouse gas reductions. Gas heat pumps also perform well in cold climates and are compatible with existing building infrastructure.

Evaluation of Hybrid Air-to-Water Heating Systems

The purpose of this project was to evaluate the performance of hybrid air-to-water heat pump/gas boiler systems for residential space and water heating in cold climates. Results suggest that further optimization of set points and control strategies can further optimize energy efficiency and cost savings for this promising configuration.

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Looking into combined heat and power?

CHP systems can reduce costs and increase efficiency for businesses and multifamily properties. Complete the form below to learn more about system options, rebates, and next steps.

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