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Funding Resources
Funding Resources
Financing for a combined heat and power (CHP) system can be arranged through traditional lenders and investors, third-party equipment owners, or directly by the company installing the system. Detailed information about financing a CHP system is available in the Streamlining Project Development Section of the Web site. Additional funding might also be available through state and local incentives.
Funding incentives are available in the form of direct financial grants, tax incentives, low-interest loans, or utility and environmental policies that increase the financial prospects for a project. Some incentives are aimed directly at installing CHP systems to reduce load on the grid or to reward efficient generation, while others provide funding specifically for biomass CHP systems. The CHP Partnership maintains a Funding Database to track incentives and provides detailed information on how to access revenue streams that financially reward, or monetize, the environmental benefits of CHP.
Federal and state policymakers have also created incentives intended to monetize the environmental attributes of clean, onsite power generation including CHP; these types of incentives are helping developers capture the full benefits of DG/CHP and overcome some of the financial hurdles created by market inefficiencies. Information about monetizing the environmental benefits of CHP, including the Partnership's paper, Environmental Revenue Streams for Combined Heat and Power (PDF) (21 pp, 770K, About PDF), is available on the Monetizing Environmental Benefits section of the Web site.