Cogeneration (CHP) solutions for commercial customers | National Grid
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Energy-efficiency on a large scale.

Managing the energy needs of a big facility can be a daunting prospect. National Grid routinely works with commercial, industrial, and municipal customers to reduce energy costs on a large scale. One way is through cogeneration, or combined heat and power (CHP), a highly efficient form of energy conversion that generates heat and electricity simultaneously, then captures and reuses heat that would otherwise be wasted.

For qualifying customers with a large-scale facility or a multi-building complex with dependable electrical and thermal loads, National Grid can connect you with a CHP vendor to explore the feasibility of CHP installation. National Grid provides incentives to customers if the project qualifies under our CHP program guidelines.

Current Incentives for Combined Heat and Power

The incentives offered for CHP units are designed specifically with this in mind with higher incentives for projects that incorporate more standard building energy efficiency measures in advance of CHP project development.  Available incentives are as follows*:

Tier 1: $900/Net kW for CHP with annual efficiency >55% and <60%.

Tier 2: $1,000/Net kW for CHP with annual efficiency > or equal to 60%.

Tier 3: Reduce the site energy use at least 5% or identified by TA study -$1,125/kW for CHP projects with annual efficiency >55% and <60%.

Tier 4:  Reduce the site energy use at least 5% or identified by TA study - $1,250/kW for CHP projects > or equal to 60% annual efficiency.

Eligibility Criteria:
  • Performance Incentives are available for projects that are Net Annual KW over 1 MW and can be up to
  • $20/kW/yr for up to 10 years.
  • Advanced Gas Technology Incentives are available for projects that qualify for gas driven projects.
  • Maximum incentive of all three sources cannot exceed 70% of the project cost.
  • Technical Assistance Engineering subsidy is available to study projects.

For more information, please refer to A Guide to Submitting CHP Applications for Incentives in Rhode Island or call 1-800-787-1706.

If you have a large-scale facility, a multi-building complex with dependable power and thermal loads, National Grid can connect you with vendors who provide incentives to qualifying customers.