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 2018.

The state has a grant program for CHP projects, but otherwise has limited policies to encourage CHP. One new CHP installation was brought online in 2018.

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 2018.

Arkansas has limited policies to encourage CHP. No new CHP systems were installed in 2018.

California has implemented a variety of policies to encourage CHP including interconnection standards, incentive programs, financial assistance, and additional supportive policies. In 2018, five new CHP installations were completed.

Colorado has some policies in place to encourage CHP including supportive interconnection policies and net metering rules. No new CHP systems were installed in 2018.

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 2018.

Delaware has some policies to encourage CHP, including supportive interconnection policies, favorable EERS treatment, and a CHP grant pathway. No new CHP system were installed in 2018.

The district offers incentives for CHP projects and has favorable interconnection standards, but otherwise has limited policies to encourage CHP. One new CHP system was installed in 2018.

The state has an incentive program for CHP projects, but otherwise has limited policies to encourage CHP development. One new CHP system was installed in 2018.

The state has limited policies to encourage CHP. No new CHP systems were installed in 2018.

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 2018.

The state has financing available for renewable- and biomass-fueled CHP, but otherwise has limited regulations or policies to encourage the deployment of CHP systems. No new CHP systems were installed in 2018.

The state has a favorable interconnection standard and CHP is included as an eligible resource in the state's EERS. No new CHP systems were installed in 2018.

Indiana has an interconnection standard that applies to CHP, but has not otherwise pursued policies to encourage CHP development. Three new CHP systems were installed in 2018.

Iowa has an interconnection standard that applies to CHP, but otherwise has limited policies to encourage CHP. No new CHP systems were installed in 2018.

The state offers few policies to encourage CHP deployment. No new CHP systems were installed in 2018.

Few policies are in place that encourage the deployment of CHP systems. No new CHP systems were installed in 2018.

Louisiana promotes adoption of CHP in critical facilities, but has not otherwise pursued policies to promote CHP. No new CHP systems were installed in 2018.

Maine has a favorable interconnection standard that applies to CHP and includes CHP within its renewable energy standard. No new CHP systems were installed in 2018.

Maryland has an interconnection standard that applies to CHP, offers incentives for CHP development, and includes CHP within its portfolio standards. Utility rate structures in the state are designed to encourage CHP investment. In 2018, two 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. Five new CHP installations came online in 2018.

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 systems came online in Michigan in 2018.

Minnesota has an interconnection standard that applies to CHP and stakeholders have recently completed a strategic process to encourage CHP deployment. No new CHP systems were installed in Minnesota in 2018.

The state has a not adopted policies to encourage the deployment of CHP systems. One new CHP system was installed in Mississippi in 2018.

Missouri promotes the use of CHP for critical infrastructure and renewable-fueled CHP is an eligible technology under the state's renewable energy standard. The Missouri Division of Energy (DE) is pursuing many avenues to promote CHP, including hosting two successful CHP: Resiliency for Critical Facilities summits, filing testimony that successfully improved standby service rates, developing a new customer SSR study tool, promoting CHP through the Energy Loan Program, proactively connecting health care and correctional facilities with CHP Technical Assistance Partnerships services, encouraging CHP outreach by Liberty Utilities’ local gas distribution company, the inclusion of CHP as a business custom measure in Ameren Missouri’s upcoming cycle of Missouri Energy Efficiency Investment Act programs, and actively participating as an engagement partner in the U.S. Department of Energy Packaged CHP Partnership. No new CHP systems were installed in 2018.

The state has a favorable interconnection standard but otherwise has limited policies or programs to encourage CHP deployment. One new CHP system was installed in 2018.

The state does not have policies in place that encourage the deployment of CHP. No new CHP systems were installed in Nebraska in 2018.

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 2018.

The state includes CHP as an eligible resource within its EERS and renewable energy standard, but otherwise has limited policies to encourage CHP. No new CHP systems were installed in 2018.

New Jersey includes CHP in its energy efficiency resource standard and offers several incentives and financing programs for CHP projects. Seventeen new CHP installations were completed in 2018.

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 2018.

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 33 new CHP installations completed in 2018.

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. One new CHP installation was completed in 2018.

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 2018.

Ohio has an interconnection standard that applies to CHP and offers an incentive program and financing assistance for CHP. One new CHP system was installed in 2018.

The state has limited policies to encourage the deployment of CHP systems. One new CHP system was installed in Oklahoma in 2018.

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. One new CHP system was installed in 2018.

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. One new CHP system was installed in Pennsylvania in 2018.

The state offers incentives for CHP deployment and includes CHP as an eligible resource within its energy efficiency resource standard. No new CHP systems came online in Rhode Island in 2018.

The state has limited policies in place that encourage CHP deployment. One new CHP system came online in South Carolina in 2018.

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 2018.

The state offers financing assistance for some CHP projects and has identified CHP as a resource to improve energy system resilience. Two new CHP systems came online in Tennessee in 2018.

Texas has some policies to support CHP and has made strides in its work on interconnection. No new CHP systems were installed in Texas in 2018.

Utah offers some incentives for CHP projects. One new CHP system was installed in 2018.

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 2018.

The state has limited policies in place to encourage CHP development, but the 2018 State Energy Plan recommends increased state-sponsorship of investment in CHP projects and calls out CHP’s resilient attributes that are important for critical facilities during severe weather events. No new CHP system came online in Virginia in 2018.

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. One new CHP system was installed in 2018.

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 2018.

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 2018.

Wyoming does not have policies in place to encourage the deployment of CHP systems. One new CHP installation was completed in 2018.