6.8 Rules of Thumb for CHP Engineering and Installation Costs

This section covers important rules-of-thumb and a variety of other important information that you need to consider when quickly assessing a project.

6.8.1 Site Feasibility Screening

Consider CHP if Spark Spread is greater than 3 or if electric demand charges are high and the facility has a decent use for the waste heat. See Spark Spreads in figure 6-3.

Figure 6-3 - Spark Spread

Figure 6-3 – Spark Spread

6.8.2 General Equipment and Maintenance Costing

Guidelines for equipment costing are shown in Table 6-2.
CHP TechnologyReciprocating EngineMicro TurbineGas TurbineFuel Cell
Typical Size Range65 kW - 15 MW30 kW - 2000 kW1 MW - 50 MW200 - 2000 kW
Average Installed cost ($/kW)$ 1,433 - $ 2,900$ 2,500 - $4,300$ 1,250 - $ 3,300$ 4,600 - $ 10,000
Total Average CHP System Efficiency78.4%66.8%69%82%
O&M Cost ($/kWH)$ 0.0177$ 0.013$ 0.0111$ 0.040
Share This