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.
Download Application


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.
  • Eligible CHP systems must be sized to meet all or a portion of the customer's on-site load, not to exceed 100% of most recent historical annual consumption or peak demand. Incentives are not available for CHP systems that serve off-site customers, exports to the grid, or are not located on the customer's property.
  • Projects must be pre-approved by December 31, 2020.

Project Incentives

All qualified projects are eligible to receive the following:

  • Incentive Amount: $1,200/kW up to and including 1 MW; $900/kW over 1 MW. The first 1MW of any system would be incentivized at $1,200/kw.
  • Design Incentive: 10% of total incentive at project approval, subsequent to signed commitment letter and acceptance of minimum requirements document.
  • Commissioning Incentive: 30% of total incentive after installation is complete, subsequent to commissioning of the CHP system and BGE inspection.
  • Production Incentive: 60% of total incentive after receiving 12 contiguous months of actual kWh generation received within 24 months of project installation, subsequent to review of metering data. Payment will be based on kWh actual generation and will be capped at 60% of total incentive.
  • Project Caps: Design and commissioning incentives are capped at $1.25 million and production incentives are capped at $1.25 million. A limit of one project per customer/site every 3 years applies. 

Program Documents

Program Resources

Benefits of CHP Video

CHP - CEE National Market Transformation

MEA - CHP 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

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