HVAC Glossary

CHP System

Last updated: March 11, 2026

A CHP System integrates power generation and heat recovery equipment to produce electricity and usable thermal energy from a single fuel source within a facility. CHP systems are configured for specific facility energy profiles and operate continuously to maximize economic return on investment.

Technical Details

CHP systems consist of a prime mover (engine, turbine, or fuel cell), electrical generator, heat recovery equipment, controls, and utility interconnection gear. Systems are sized by thermal load rather than electrical demand, with capacities from 10 kilowatts to 50 megawatts. Electrical output is 30 to 45 percent of fuel energy, while heat recovery yields 40 to 50 percent, resulting in combined efficiency of 70 to 85 percent.

Installation and Performance

CHP systems require proper facility thermal load analysis and utility coordination for grid interconnection. Capital costs range from 3,000 to 6,000 dollars per kilowatt, with payback periods of 5 to 12 years depending on fuel costs and electricity rates. Operations and maintenance costs are 0.005 to 0.015 dollars per kilowatt-hour. Systems reduce carbon emissions by 20 to 40 percent and enhance facility energy independence and resilience.

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