How to Add an Onsite CHP Unit Without Paying for Equipment

Combined heat and power (CHP) systems, also known as cogeneration, offer an efficient way to generate electricity and thermal energy on-site, reducing energy costs and increasing reliability. However, the upfront costs of purchasing and installing a CHP unit can be a significant barrier for many organizations. Fortunately, there are ways to add an onsite CHP unit without paying for the equipment upfront. Below are some innovative approaches to consider for your business. 

Rental and Leasing Options 

One of the most straightforward ways to implement a CHP system without purchasing the equipment is through rental or leasing programs. These options allow you to benefit from CHP technology without a significant initial investment.  

Traditional Rental Model 

Many cogeneration manufacturers offer rental solutions tailored to your specific needs. With this model: 

• You pay fixed monthly rates, making costs predictable and easy to budget. 

• The rental agreement often covers insurance, reducing your risk. 

• Rental periods typically range from 4 to 9 years. 

Pay-Per-Use Model 

Some companies offer a pay-per-use solution, which can be even more flexible: 

• You only pay for the actual operating hours of the cogeneration system. 

• This model often includes an energy service contract covering maintenance and repairs. 

• It allows for easy termination after a minimum number of operating hours. 

Energy Service Agreements 

Another option is an Energy Service Agreement (ESA) with a CHP provider, like Catalyst Power. Here’s how it works: 

• The provider installs, owns, and operates the CHP system on your property. 

• You purchase the electricity generated and thermal energy the system produces at a predetermined rate. 

• This arrangement often results in immediate cost savings without high start-up costs. 

According to the Maryland Energy Administration, “In these situations, the CHP is still installed at the facility as it would be if the customer chose to own it, but the provider retains ownership of the system and is responsible for its maintenance, upkeep, and associated expenses. The customer is instead charged an all-in price for electricity, heat, and associated administrative charges. These prices vary by provider and should be thoroughly discussed and understood before consideration.” 
 
Call on Cogeneration 

Adding an onsite CHP unit without paying for equipment is possible and increasingly common. By exploring rental options, pay-per-use models, or ESAs, you can enjoy the benefits of cogeneration technology while minimizing upfront costs. These approaches allow you to generate electricity on-site, increase energy efficiency, and potentially reduce your overall energy expenses without the burden of equipment ownership. 

When you partner with Catalyst Power, we will own and operate your cogeneration system, saving you money on energy efficiency and eliminating equipment costs, including maintenance and installation. You can even unlock more benefits when you combine cogeneration with solar. Contact our Energy Experts today to learn how cogeneration can improve your daily operations and save you money!