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     Welcome to the California Distributed Energy Resources Guide
     DER Equipment

    Combined Heat & Power


    | Applications | Performance | Cost | Strengths & Weaknesses | Future Development | Vendors |

    The total installed cost of a system includes the equipment cost (power generation unit, heat recovery equipment, and all integration hardware), integration cost (requiring engineering and design if the system is not packaged by the supplier), and installation cost (requiring additional engineering and design for the heating application).

    While cost information for complete combined heat and power systems is still difficult to obtain, those systems currently available as a packaged products fall into the cost ranges in the following table. A packaged system does not require additional engineering and design for integration.

    Installed CHP System Costs
    (including power generator and heat recovery equipment)
    Prime Mover Technology Cost ($/kW)
    Mature Technologies
    Reciprocating Engines Diesel 700-1,000
    Dual Fuel 800-1,200
    Natural Gas Spark Ignition 800-1,200
    Combustion turbines (simple cycle) 700-1,000
    Emerging Technologies
    Micro/Miniturbines (recuperated) 700-1,300
    Fuel Cells PAFC 4,200
    PEM <10,000
    MCFC <10,000
    SOFC <20,000

    Fuel cell technologies are in various stages of development, and prices reflect this development status. For perspective, the cost of MCFC and SOFC fuel cells in high volume production is estimated to be $800-$1,500/kW. PEM fuel cells, which are being targeted for automotive applications, are expected to reach lower levels if these devices are used in mainstream automotive lines. The cost for microturbines is expected to fall to $400-$800/kW as volumes increase.


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    Page Updated: October 18, 2004