Northeast Clean Energy Application Center

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Economic Impact of CHP

State economies are positively affected both through the energy efficiency of deployed CHP systems and by the level of activity of the CHP industry as a whole. In both ways, the development of a robust CHP industry contributes to the economic health of many states.

In the Northeast, where electricity prices are relatively high, end users and industry benefit from reduced wholesale power prices when demand on the grid is reduced. All customers also benefit from increased reliability, greater energy efficiency, and lower power costs resulting from CHP. Numerous studies have detailed the job creation, diversity of economic base, tax revenue, and other positive impacts of a blossoming CHP industry. There is also economic evidence of the potential for CHP and other efficiency investments to help hold down skyrocketing natural gas prices.

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