State and Local Policy Database

CHP Summary

Clean distributed generation systems, such as combined heat and power (CHP), reduce the amount of energy lost in transmitting electricity because the electricity is generated near the point of consumption, often even in the same building or facility. This also reduces the size and number of power lines that must be constructed. CHP is more energy efficient than separate generation of electricity and thermal energy because the heat that would normally be wasted in conventional power generation is recovered as useful energy for satisfying an existing thermal demand, such as the heating and cooling of a building or water supply.

Despite the economic, energy, and environmental benefits of distributed generation, such systems face market and regulatory barriers, which differ among states and utility territories. Regulations dealing with air emissions, interconnection, net metering, and standby rates can often determine whether a distributed generation project will be implemented.

Alabama offers a financing program for CHP projects but otherwise has limited policies to encourage CHP. No new CHP systems were installed in 2015.

The state has a grant program for CHP projects, but otherwise has limited policies to encourage CHP. No new CHP installations were brought online in 2015.

Arizona includes CHP as an eligible resource in its EERS and has adopted policies to support renewable-fueled CHP systems. One new CHP systems was installed in 2015.

Arkansas has limited policies to encourage CHP. One new CHP system was installed in 2015.

California has implemented a variety of policies to encourage CHP including interconnection standards, incentive programs, financial assistance, and additional supportive policies. In 2015, 28 new CHP installations were completed.

Colorado has some policies in place to encourage CHP including interconnection and net metering rules. Two new CHP systems were installed in 2015.

The state has pursued a variety of policies to encourage CHP development, including establishing interconnection standards and financing programs. Eight new CHP systems came online in Connecticut in 2015.

Delaware has limited policies to encourage CHP. One new CHP system was installed in 2015.

The district offers incentives for CHP projects and has an interconnection standard, but otherwise has limited policies to encourage CHP. Two new CHP systems were installed in 2015.

The state has an incentive program for CHP projects, but otherwise has limited policies to encourage CHP development. No new CHP systems were installed in 2015.

The state has limited policies to encourage CHP. One new CHP systems was installed in 2015.

The state includes CHP as an eligible resource within its renewable energy standard, but otherwise has limited policies to encourage CHP. One new CHP system was installed in 2015.

The state has an incentive program for CHP, but otherwise has limited regulations or policies to encourage the deployment of CHP systems. Two new CHP systems were installed in 2015.

The state has an interconnection standard and CHP is included as an eligible resource in the state's EERS. No new CHP systems were installed in 2015.

Indiana has an interconnection standard that applies to CHP, but has not otherwise pursued policies to encourage CHP development. No new CHP systems were installed in 2015.

Iowa has an interconnection standard that applies to CHP, but otherwise has limited policies to encourage CHP. One new CHP system was installed in 2015.

The state offers few policies to encourage CHP deployment. Three new CHP systems were installed in 2015.

No policies are in place that encourage the deployment of CHP systems. One new CHP system was installed in 2015.

Louisiana promotes adoption of CHP in critical facilities, but has not otherwise pursued policies to promote CHP. No new CHP systems were installed in 2015.

Maine has an interconnection standard that applies to CHP and includes CHP within its renewable energy standard. One new CHP system was installed in 2015.

Maryland has an interconnection standard that applies to CHP, offers incentives for CHP development, and includes CHP within its portfolio standards. Also, utility rate structures in the state are designed to encourage CHP investment. In 2015, no new CHP installations were completed.

The state has a variety of policies to encourage CHP deployment, including an incentive program, inclusion of CHP as an eligible resource within the state's EERS, and an interconnection standard that applies to CHP. In 2015, six new CHP installations were completed.

The state has an interconnection standard that applies to CHP and CHP is an eligible resource in the state's renewable energy standard. One new CHP system came online in Michigan in 2015.

Minnesota has an interconnection standard that applies to CHP and stakeholders have recently completed a strategic process to encourage CHP deployment, but has not otherwise adopted additional policies. No new CHP systems were installed in Minnesota in 2015.

The state has not adopted policies to encourage the deployment of CHP systems. No new CHP systems were installed in Mississippi in 2015.

Missouri has limited policies to encourage the deployment of CHP. No new CHP systems were installed in Missouri in 2015.

The state has limited policies or programs to encourage CHP deployment. One new CHP system was installed in 2015.

The state does not have policies in place that encourage the deployment of CHP. No new CHP systems were installed in Nebraska in 2015.

CHP is considered an eligible resource within the state's energy efficiency resource standard, but the state has not otherwise adopted policies to encourage CHP deployment. No new CHP systems were installed in Nevada in 2015.

The state includes CHP as an eligible resource within its renewable energy standard, but otherwise has limited policies to encourage CHP. No new CHP systems were installed in 2015.

New Jersey offers incentives and financing programs for CHP projects and has an output-based emissions standard. Five new CHP installations were completed in 2015.

The state has an interconnection standard that applies to CHP and favorable revenue streams available for CHP projects. No new CHP systems were installed in New Mexico in 2015.

New York has adopted strong policies and programs to support the deployment of CHP. There were 36 new CHP installations completed in 2015.

The state offers incentives for CHP projects, has an interconnection standard that applies to CHP, and includes CHP as an eligible resource within its renewable portfolio standard. No new CHP installations were completed in 2015.

Some incentives are available for CHP, but the state has limited policies in place to encourage CHP deployment. No new CHP system was installed in North Dakota in 2015.

Ohio has an interconnection standard that applies to CHP and offers an incentive program and financing assistance for CHP. One new CHP installation came online in Ohio in 2015.

The state has limited policies to encourage the deployment of CHP systems. No new CHP systems were installed in Oklahoma in 2015.

The state has an interconnection standard that applies to CHP and a policy in place to encourage energy savings from CHP to help reach the state's long terms savings goals. Two new CHP systems came online in Oregon in 2015.

CHP is included as an eligible resource within the state's alternative portfolio standard and CHP deployment is encouraged through additional policies and technical assistance efforts. Two new CHP systems were installed in Pennsylvania in 2015.

The state offers incentives for CHP deployment and includes CHP as an eligible resource within its energy efficiency resource standard. One new CHP system came online in Rhode Island in 2015.

The state does not have policies in place that encourage CHP deployment. One new CHP systems came online in South Carolina in 2015.

The state has an interconnection standard that applies to CHP, but does not otherwise have policies in place that encourage CHP deployment. No new CHP systems were installed in South Dakota in 2015.

The state offers financing assistance for some CHP projects, but does not otherwise have policies in place that encourage CHP deployment. One new CHP system came online in Tennessee in 2015.

Texas has some policies to support CHP and has made strides in its work on interconnection. Four new CHP systems were installed in Texas in 2015.

Utah offers some incentives for CHP projects. No new systems were installed in Utah in 2015.

The state has an interconnection standard that applies to CHP, an incentive program for CHP, and includes CHP as an eligible resource in the state's renewable energy goals. No new CHP systems were installed in Vermont in 2015.

The state has not pursued policies to encourage the deployment of CHP. No new CHP system came online in Virginia in 2015.

The state has an interconnection standard that applies to CHP and CHP is included as an eligible resource in the state's energy efficiency resource standard. Two new CHP systems were installed in 2015.

CHP systems are eligible for net metering in West Virginia, but the state has not otherwise adopted policies to encourage CHP. No new CHP installations were completed in 2015.

The state has interconnection standards that apply to CHP and CHP is an eligible resource in the state's renewable portfolio standard. Four new CHP installations came online in 2015.

Wyoming does not have policies in place to encourage the deployment of CHP systems. No new CHP installations were completed in 2015.