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What are some of the advantages of a CHP (Combined Heat & Power) system?

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What are some of the advantages of a CHP (Combined Heat & Power) system?

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Because cogeneration produces two usable energy sources from a single fuel, it operates more efficiently than other sources of energy. Consequently, it saves money. In fact, cogeneration turns up to 90% of the fuel burned into usable energy. That compares with just 52% of the fuel burned in most local power plants or in typical hot water heater. That difference in efficiency can save large sums of money. Returns on investment of capital range from 25 to 50% when cogeneration is properly applied to a facility be it a home, commercial operation or an industry. Not only are economics involved in using cogeneration, but there are environment and conservational benefits too.

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