CHP Financing Primer

While the technical and economic benefits of combined heat and power (CHP) projects are well documented, the financing process is often misunderstood and frequently not given sufficient attention. There are various financing options available to CHP end-users depending on the entity that will own the CHP system. This financing primer provides checklists of information that financiers need to evaluate CHP investment opportunities, and discusses how CHP developers can best tailor their financing approach to a specific project. CHP developers and prospective end-users should be well informed, and be able to evaluate and consider the potential impacts of all CHP financing decisions. If key information is prepared and presented properly, project developers can expedite the financing process and increase the likelihood of receiving favorable financing terms.