New Incentives for CHP


CHP has never been a better deal in NYC!  Con Edison is partnering with the New York State Energy Research and Development Authority (NYSERDA) to reduce electric demand in parts of Brooklyn and Queens (BQDM) by deploying a series of combined heat and power (CHP) projects. Even more exciting is that, for a limited time (applications are due February 29th, 2016), Con Edison and NYSERDA together will pay for up to 100% of project cost. Sounds great, but how do you get in? Let’s break it down.

What is BQDM?


Brooklyn Queens Demand Management, or BQDM, is a Con Edison initiative put in place to reduce the electricity demand in specific Brooklyn and Queens neighborhoods. See above map.  To delay building a new substation to meet growing electricity demand, Con Edison is providing a series of initiatives to reduce electricity usage during peak times.

Why CHP?

In short, it’s extremely efficient. Combined heat and power (CHP) or ‘cogeneration’ is a way of producing electricity and useful heat, at the same time. A CHP system consists of a natural gas-fired electric generator, plus a system to capture the heat that is always produced and typically lost, and put it to productive use.  The heat can be used for heating domestic hot water, hydronic and warm air heating and even, in some cases, air-cooling.  The CHP systems we recommend always provide back-up power (or “black-start”) during grid outages.

Plus, it’s extremely cost-effective. The electricity produced by a CHP system is directly related to the cost of natural gas, without any of the charges for electricity distribution that you pay for conventional utility power.  While an electric generator can reach a maximum of 45% efficiency, a CHP system with heat recapture can reach 80% efficiency.  The result is an electricity price of 8 cents per kWh throughout the lifetime of a CHP system.

Furthermore, running the CHP system during summer days relieves stress on the grid, lowers peak demand and reduces overall fuel consumption.      

How do I know if I’m eligible?

Just ask! Bright Power can verify your building’s eligibility for this program. We will help you evaluate your building based on the program’s criteria:

  • significant annual energy consumption for both electricity and heat (e.g. an electric utility bill of $5,000 or more per month and a gas bill of $3,500 or more)
  • access to natural gas (to be confirmed by National Grid)
  • sufficient space to accommodate a CHP system with reasonable access to electricity and natural gas infrastructure (typically a minimum of 200 square feet)

Our team of energy experts are available to go over these requirements with you to see if your building is a good fit for the program.  Don’t hesitate to reach out – the time is now!