“Although there is the initial investment, in the long run it saves you money.”

A combined heat and power system produces both heat and electricity from one fuel source. It gives you the ability to produce your own electricity on-site, as opposed to purchasing it from a local utility company. There are a number of advantages to one of these systems, including the incentives provided by the state of New Jersey for switching your current system. New Jersey provides financial incentives for commercial buildings which adopt a combined system.

Here we look at the top five reasons to move to a combined heat and power system:

1) They are more reliable.

Because you are producing your own heat and electricity which isn’t connected to the public power grid, you can avoid emergencies caused by lack of service. Combined heat and power is more dependable than a standard backup generator, and can provide you with daily savings. If your facility would be in a critical position if it lost power, consider installing a heat and power system with backup capabilities.

2) They are an efficient way to produce electricity and heat.

You may be surprised to know a traditional system is, on average, only about 30% efficient. This translates into high amounts of waste products as well as high costs. A combined heat and power system, however, is designed to capture and reuse the waste products, bringing total efficiency up to 60% or higher. By doubling your efficiency you help both the environment and your wallet.

3) Less fuel is required.

Since a combined heat and power system is so good at utilizing waste products, less fuel is needed in the first place. Less fuel translates to lower greenhouse gas emissions as well as lower operating costs for your facility.

4) Your combined system might not even require fossil fuel.

Combined heat and power systems have the ability to be powered by biomass, such as plant waste, agricultural waste and the like. With the high and ever rising costs of fossil fuels, having the ability to use an opportunity fuel can be a huge benefit to your company. Also, you maybe qualify for additional incentives for using cleaner and renewable fuel sources.

5) It makes economic sense.

Although there is the initial investment, in the long run it saves you money. All of the prior points discussed reduce your costs in one way or another ‘ whether by reducing fuel usage, increasing efficiency or allowing you to create your own power when you need it most. Additionally, a combined system allows you to fight against unstable energy prices by letting your supply your own electricity when prices fluctuate too high.

If you’re unsure about whether or not a combined heat and power system is right for you, contact American Boiler Company at 973.923.1999. We offer a free analysis of the savings you could enjoy and can help you decide if combined heat and power is beneficial for your facility.