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 2017.

The state has a grant program for CHP projects, but otherwise has limited policies to encourage CHP. Two new CHP installations were brought online in 2017.

Arizona includes CHP as an eligible resource in its EERS and has adopted policies to support renewable-fueled CHP systems. No new CHP systems were installed in 2017.

Arkansas has limited policies to encourage CHP. No new CHP systems were installed in 2017.

California has implemented a variety of policies to encourage CHP including interconnection standards, incentive programs, financial assistance, and additional supportive policies. In 2017, five new CHP installations were completed.

Colorado has some policies in place to encourage CHP including interconnection and net metering rules. One new CHP system was installed in 2017.

The state has pursued a variety of policies to encourage CHP development, including establishing interconnection standards and financing programs. Two new CHP systems came online in Connecticut in 2017.

Delaware has limited policies to encourage CHP. No new CHP system were installed in 2017.

The district offers incentives for CHP projects and has an interconnection standard, but otherwise has limited policies to encourage CHP. One new CHP system was installed in 2017.

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 2017.

The state has limited policies to encourage CHP. Two new CHP systems was installed in 2017.

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 2017.

The state has an incentive program for CHP, but otherwise has limited regulations or policies to encourage the deployment of CHP systems. No new CHP systems were installed in 2017.

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 2017.

Indiana has an interconnection standard that applies to CHP, but has not otherwise pursued policies to encourage CHP development. One new CHP system was installed in 2017.

Iowa has an interconnection standard that applies to CHP, but otherwise has limited policies to encourage CHP. No new CHP systems were installed in 2017.

The state offers few policies to encourage CHP deployment. No new CHP systems were installed in 2017.

Few policies are in place that encourage the deployment of CHP systems. No new CHP systems were installed in 2017.

Louisiana promotes adoption of CHP in critical facilities, but has not otherwise pursued policies to promote CHP. No new CHP systems were installed in 2017.

Maine has an interconnection standard that applies to CHP and includes CHP within its renewable energy standard. No new CHP systems were installed in 2017.

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 2017, four 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 2017, three 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. Three new CHP systems came online in Michigan in 2017.

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. Three new CHP systems were installed in Minnesota in 2017.

The state has not adopted policies to encourage the deployment of CHP systems. No new CHP systems were installed in Mississippi in 2017.

Missouri has limited policies to encourage the deployment of CHP. No new CHP systems were installed in 2017.

The state has limited policies or programs to encourage CHP deployment. No new CHP systems were installed in 2017.

The state does not have policies in place that encourage the deployment of CHP. No new CHP systems were installed in Nebraska in 2017.

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 2017.

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 2017.

New Jersey offers incentives and financing programs for CHP projects and has an output-based emissions standard. Ten new CHP installations were completed in 2017.

The state has an interconnection standard that applies to CHP and favorable revenue streams available for CHP projects. One new CHP system was installed in New Mexico in 2017.

New York has adopted strong policies and programs to support the deployment of CHP. In June 2017, Executive Order #166 Redoubling New York's Fight Against the Economic and Environmental Threats Posed by Climate Change and Affirming the Goals of the Paris Climate Agreement was signed, explicitly supporting high efficiency combined heat and power projects as part of its portfolio towards meeting policy goals. There were 53 new CHP installations completed in 2017.

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. Three new CHP installations were completed in 2017.

Some incentives are available for CHP, but the state has limited policies in place to encourage CHP deployment. No new CHP systems were installed in North Dakota in 2017.

Ohio has an interconnection standard that applies to CHP and offers an incentive program and financing assistance for CHP. No new CHP systems were installed in 2017.

The state has limited policies to encourage the deployment of CHP systems. No new CHP systems were installed in Oklahoma in 2017.

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. No new CHP systems were installed in 2017.

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. The Pennsylvania Public Utilities Commission issued a CHP policy statement in 2018 encouraging utilities to make CHP an integral part of their energy efficiency & resilience plans, design interconnection and standby rates, and promote the consideration of special natural gas rates for owners and operators of CHP facilities. Five new CHP systems were installed in Pennsylvania in 2017.

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 2017.

The state does not have policies in place that encourage CHP deployment. No new CHP systems came online in South Carolina in 2017.

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 2017.

The state offers financing assistance for some CHP projects, but does not otherwise have policies in place that encourage CHP deployment. Two new CHP systems came online in Tennessee in 2017.

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 2017.

Utah offers some incentives for CHP projects. No new CHP systems were installed in 2017.

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 2017.

The state has not pursued policies to encourage the deployment of CHP. No new CHP system came online in Virginia in 2017.

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. No new CHP systems were installed in 2017.

CHP systems are eligible for net metering in West Virginia, but the state has not otherwise adopted policies to encourage CHP. No new CHP systems were installed in 2017.

The state has interconnection standards that apply to CHP and CHP is an eligible resource in the state's renewable portfolio standard. No new CHP systems were installed in 2017.

Wyoming does not have policies in place to encourage the deployment of CHP systems. No new CHP installations were completed in 2017.