Combined Heat & Power

Two-thirds of the energy that feeds conventional power plants is wasted heat, according to the American Council for an Energy-Efficient Economy. You can cut that waste in half by switching to a Combined Heat and Power (CHP or cogeneration) system, which generates electricity and thermal energy in a single, integrated system.* We offer incentives to help you take advantage of CHP technologies. Advances such as combustion turbines and reciprocating engines have allowed for new configurations of systems that combine heat and power production, expanding opportunities for these systems and increasing the amount of electricity they can produce. New turbines are now cost effective for systems down to 500 kW and reciprocating engines for systems down to 50 kW, dramatically expanding the number of sites where CHP can be installed. In recent years, smaller CHP systems have begun to make inroads in the light manufacturing, commercial buildings, and at smaller institutions such as hospitals.

Important Note: All CHP projects have to meet a minimum TRC of 0.70.  All other custom non-CHP projects have to meet a minimum TRC of 0.85.


Apply for incentives. Offset upfront costs and reduce payback time. We will pay 50% of a project’s cost, up to $500,000. Projects must be installed and commissioned by January 1, 2024 to complete M&V.

Lower operating costs through long-term energy savings 

Improve the efficiency and performance of your facility 

Preserve the environment, reduce emissions, saving natural resources and complying with EPA’s Clean Power Plan 

Pre-approval is required for all CHP projects.

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Installing a photovoltaic (PV) solar system is more affordable than ever. Incentives require pre-approval and are capped at 50 percent of the project cost, up to $500,000.

All solar project incentives will be calculated and paid based on energy usage displaced from PPL Electric Utilities’ system. Customers without kWh load offset by solar are not eligible for incentives.


New construction projects will be vetted based on the PPL Electric service application. TRC and incentives will be calculated based on customer's displaced energy.


Pre-approval for solar projects is required. To receive pre-approval, you must have a service and interconnection application submitted with PPL Electric. For assistance, reach out to [email protected].


Read our Solar FAQs


*Source: ACEEE. Learn more about combined heat and power systems at ACEEE. The ACEEE offers a deployment toolkit for Combined Heat & Power Projects to be found here.