CHP (Combined Heat and Power) Systems: What Investors Need to Know

You’ve likely often heard it said that the future is approaching “faster than we think.” When we look back on the years that have flown by in a

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blink, we realize nothing could be more accurate than the idea that the future grows from the accumulation of present moments, one on top of the other…until we look back and realize suddenly how far we’ve come.

Contemporary science tells us that how we arrive at our “future” matters—and that the choices we make today out of convenience can have ripple effects for generations after we are gone and buried. Whether this rings true to your life values or not, one thing has become clear: the more we research, invest in, and develop infrastructure for renewable energies, the stronger we are as a nation—not to mention other practical benefits that can come with investing in sources of energy that are not in limited supply, like fossil fuels. In this article, we will address what CHP (Combined Heat and Power) systems are, how they work, and the top three reasons to choose a CHP system for your next long-term investment!

What is a CHP System?

CHP (Combined Heat and Power) systems represent a mechanized process that integrates producing both electricity and heat. This is why it is sometimes referred to as “cogeneration,” and is largely considered a more efficient way to cool or warm a home or business. While there are many different fuel types available to power CHP setups, one of the most popular renewable options with modern CHP installation services comes from biofuels, or biomass energy—typically in the form of wood chips or wood pellets.

How Do CHP Systems Work?

While a highly efficient, dual-purpose energy system can sound palatable on the surface, it’s another thing entirely to understand how a CHP system actually works. These units combine electricity and heat production through a decentralized, multifaceted mechanism that first relies on fuel to produce both heat and energy. During this process, heat is applied to a water tank to generate hot water and steam. This is then used to power a turbine, creating yet more electricity—making it doubly effective at energy output for the amount of fuel used. (Some Combined Heat and Power systems do not have the additional components necessary to harness the power of stem, and therefore aren’t quite as efficient as the model dictated above.)

CHP System: For Home or Commercial Applications?

Because CHP systems are generally considered to be highly efficient, they can be great in either commercial or residential settings in both efficiency, efficacy, and in terms of potential savings. While of course it is going to require less fuel to heat a 1,000-square-foot home, Combined Heat and Power setups are now powerful enough that they can warm industrial spaces as expansive as 100,000 square feet, and beyond. In fact, one of the only limitations to this type of technology is whether or not your home has the physical space for the equipment—which could be a deciding factor in terms of whether or not you opt to invest in this type of renewable energy.

Benefits of a CHP System

While the amount of space that this equipment takes up can be an issue for some property owners with apartments, condos, cabins, or other small spaces, it’s important to keep in mind that it does the work of both a power generator and a hot water heater. And while the initial cost of switching to a CHP system can sometimes set you back as much as $20,000, it is usually closer to $7,500-$10,000 for the equipment and installation itself. So, why do so many Americans make the switch to a CHP system to power their home or business? Here are the top # benefits of going with combined heat and power:

1.     Carbon-neutral energy source: Are you interested in reducing your impact on future generations and investing in a climate your children and grandchildren can enjoy? Not only is investing in biofuels or other forms of renewable energy sources a guarantee that your energy comes from abundant, consistent resources, but it is a step away from our reliance on fossil fuels—many of which we import from other nations and most of which are in limited supply. This means they will only increase in scarcity and therefore price as time goes on—so why not look ahead?

2.     Financial savings: Even if you’re not interested in “investing in tomorrow,” switching to CHP systems can help you save big each year—from annual utility bills to fuel costs and even tax incentives!

3.     Reduced reliance on existing infrastructure: Are you someone who likes to feel prepared in case of an emergency? Whether you’re

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a doomsday prepper or a first responder, producing your own energy has a high level of appeal for those who like to be masters of their own fate. This means that even if the masses are without power due to an outage or infrastructure failure, you will still be able to carry on in comfort.

4.     High efficiency for the amount of fuel used: As we mentioned before, the dual-purpose nature of a CHP system means that they produce both heat and electricity—sometimes in as many as two ways simultaneously for the same amount of fuel. This not only saves finances but reduces emissions as well!

5.     Investing in American “clean” energy infrastructure: Want to create an economy built on shared values that will make more jobs for American families? Emerging renewable energy technologies can make up as much as 45% of the energy sector by 2050—and this number is only predicted to increase. By hiring independent local businesses like Caluwe, Inc. to install and maintain your CHP (Combined Heat and Power) system, you are investing not only in the local economy but reducing American reliance on foreign sources of energy.

Best CHP (Combined Heat and Power) Installation Service Boston, MA

Many people are making the switch to more efficient, more abundant sources of renewable energy—from progressive-minded global citizens to Americans with long-term financial savings goals. Are you ready to step forward into the future of the American energy sector by investing in American-manufactured and installed renewable energy technologies? When you factor in incentives like tax credits and limitations on monthly utility bills and fuel costs, making the switch to a CHP system quickly becomes a no-brainer.

Ready to take the leap today? Contact the professionals at Caluwe, Inc. for the latest and greatest deals and technology, including wood chip boiler setups and CHP technology!