Standa Soucek
Cogeneration can be used in different kinds of facilities. A fast decision as to whether the CHP unit is the right source, is if the electrical rate is higher than 7 cents per kilowatt hour. It’s also really important for ROI to consider heat utilization and find a way to use available incentives.
Jason Kaplan
I would add that it’s important to realize that cogeneration, in many cases, can reduce greenhouse gas emissions and an analysis of the location and the particulars are needed to quantify the savings. But generally speaking, cogen is less greenhouse gas emitting than the than the grid and using the technology results in a savings of greenhouse gas emissions.
Jason Kaplan
For typical ROI on our projects, we aim to be under five years. And we usually see a return in the range of two to three years. That is of course utilizing the available incentives. There are federal, state and local incentives that typically come into play with these projects. And when you can utilize those incentives, the ROI is typically two to three years.
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