Combined Heat & Power

  • Operate your facility with efficient and clean energy.
  • Lower energy costs.
  • Receive incentives up to $2.5 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 $2.5 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, 2017.
Download Application

Project Incentives

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: $275/kW for projects under 250kW and $175/kW for projects 250kW and over, 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.
  • Project Caps: Capacity and design incentives are capped at $1.25 million and production incentives are capped at $1.25 million.

Program Documents

Program Resources

CHP - CEE National Market Transformation

MEA - CHP FY16 Grant Program

CHP Service Provider 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 Service Provider List.”

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

How to Participate

For more information or questions about the program, call your Program Representative at 410.290.1202 or email

Learn More About CHP

EPA’s CHP Partnership

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