Combined Heat and Power

  • Operate your facility with efficient and clean energy.
  • Lower energy costs.
  • Receive incentives up to $2 million per project.

The BGE Smart Energy Savers Program® is seeking qualified projects as part of its Combined Heat and Power (CHP) Program, which provides incentives up to $2 million to industrial and commercial customers who install an onsite CHP system.

About CHP

CHP is a clean and efficient approach to generate power and thermal energy from a single fuel source. Typical CHP systems:

  • Are located in close proximity to the energy consumer’s building, campus or industrial processes.
  • Provide at least a portion of a facility’s electrical load.
  • Capture thermal energy from hot exhaust gases for use in space heating, cooling, domestic hot water, dehumidification and/or process heating.
  • Improve a facility’s operational efficiency, cut energy costs and reduce emissions.


This program is open to all BGE nonresidential, industrial, commercial, government, institutional and nonprofit electric service customers (rate schedules G, GS, GL, P or T), regardless of your gas and/or electricity supplier. (To determine your rate schedule, look under the “Electric Details” section of your BGE bill.)

  • Eligible CHP projects may be driven by either a reciprocating engine or a gas turbine and must operate at a minimum of 65% efficiency (Higher Heating Value) on an annual basis. 
  • All qualifying systems must not export electricity to the grid. 
  • Projects must be pre-approved by December 31, 2014.
  • All projects must be commissioned and operational by December 31, 2016.


All qualified projects are eligible to receive the following:

  • Design incentive ($75/kW): Subsequent to signed commitment letter and acceptance of minimum requirements document.
  • Installation incentive ($175/kW): Subsequent to commissioning of the CHP system and BGE inspection.
  • Production incentive ($0.07/kWh for 18 months): Three payments subsequent to review of metering data at the end of the 6th, 12th and 18th months.

Important Documents

Program Announcements

A CHP Seminar was held at Johns Hopkins University on October 9th, 2013. Thank you to all those that attended! If you missed it, please click below to view the PowerPoint presentation.

CHP Seminar PPT


For more information or questions about the program, call 410.290.1202 or email

CHP Resource List

Are you a CHP project developer or an engineering firm specializing in CHP? Submit your contact information and a brief description (30 words maximum!) of your firm’s capabilities to and use the phrase “Services Offered” in the subject line. BGE will put you on the “CHP Resource List.”

To find a participating CHP engineering firm, contractor or project development firm click here.

Learn More About CHP

DOE’s Industrial Distributed Energy
EPA’s CHP Partnership

In the News: "Maryland's Newest Casino Takes a Creative Approach to Power"

The Maryland Energy Administration’s EMPOWER MD CHP Grant Program can help Maryland business implement CHP technologies in Healthcare and Publicly Owned Wastewater Treatment facilities.


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