The Role of Incentives in Promoting CHP Development

摘要

State policies and regulations can help mitigate or eliminate regulatory and marketrnbarriers that stymie the installation of combined heat and power (CHP) systems, especiallyrnbarriers imposed by utilities that resist distributed generation. Financial incentives can play a rolernin promoting CHP development by mitigating the additional costs that result from these barriers.rnTo help focus the priorities of state policymakers and regulators, this paper analyzes CHPrninstallation data and compares them for each state to regulatory policies and financial incentivesrnapplicable to CHP. Based on our analysis, we suggest that states should focus primarily onrneliminating regulatory barriers, while using financial incentives to complement regulatory reformrnand encourage CHP development.