NOTE: Due to recent legislation changes, AEP Ohio is not accepting any new CHP project applications for incentives at this time. Please check back for incentives that may be available after 2020. Also, visit our website at for information on the interconnection process for Distributed Generation projects.

Combined Heat and Power and Waste Energy Recovery Program

The Combined Heat and Power and Waste Energy Recovery Program (CHP/WER) supports the installation of high efficiency, sustainable and cost effective projects in AEP Ohio’s service territory as allowed by SB 315.

Combined Heat and Power (CHP) is a cogeneration strategy which involves the generation of both electricity and useful heating (or cooling). CHP is a thermodynamically efficient method of generating electricity because it utilizes waste heat for local heating or cooling. The CHP program is focused on incentivizing and enabling development of efficient CHP systems.

Waste Energy Recovery (WER) is an alternative approach of generating electricity through capture and reuse of waste heat. Heat recovery technologies frequently reduce the operating costs for facilities by increasing their energy productivity.

Who is eligible?

Business customers that are served by AEP Ohio and are large users of steam for ongoing processes and could include industrial, institutional and healthcare facilities. Other types of CHP projects can be considered if they meet minimum efficiency requirements of 60% overall efficiency and 20% useful thermal energy.

WER projects are eligible from a facility that generates electricity through the conversion of energy from either:

  1. Exhaust heat from engines or manufacturing, industrial, commercial or institutional sites (except from a facility whose primary purpose is the generation of electricity).
  2. Reduction of pressure in gas pipelines before gas is distributed through the pipeline provided the conversion of energy to electricity is achieved without using additional fossil fuels.
  3. A facility at a state institution of higher education that recovers waste heat from electricity-producing engines or combustion turbines and simultaneously uses the recovered heat to produce steam (provided the facility was placed in service between 2002 and 2004).

For questions regarding the CHP/WER program, please contact AEP Ohio at 330-438-7028.

Is your facility a good candidate for CHP? If you can answer "yes" to three or more of the following questions, your facility may be a good candidate for CHP!

  • Do you pay more than $.06/kWh on average for electricity (including generation, transmission and distribution)?
  • Are you concerned about the impact of current or future energy costs on your business?
  • Are you concerned about power reliability? Is there a substantial financial impact to your business if the power goes out for 1 hour? For 5 minutes?
  • Does your facility operate for more than 3,000 hours per year?
  • Do you have thermal loads throughout the year (including steam, hot water, chilled water, hot air, etc.)?
  • Does your facility have an existing central plant?
  • Do you expect to replace, upgrade, or retrofit central plant equipment within the next 3-5 years?
  • Do you anticipate a facility expansion or new construction project within the next 3-5 years?
  • Have you already implemented energy efficiency measures and still have high energy costs?
  • Are you interested in reducing your facility's impact on the environment?
  • Do you have access to on-site or nearby biomass or waste heat resources (i.e. landfill gas, farm manure, food processing waste, excess industrial heat, etc.)?

For a free CHP Screening to evaluate your site for CHP feasibility contact:

U.S. DOE Midwest Combined Heat and Power Partnership (Midwest CHP TAP)
Cliff Haefke, Director
Phone: 312-355-3476

Or (for Ohio Manufacturers' Association Members, and other Manufacturing Facilities)

OMA Energy Efficiency Peer Network
Contact: OMA Energy Consultant, John A Seryak, PE
Phone: (614) 268-4263 x302
(937) 474-5196 cell

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Privacy Policy

Privacy Policy for AEP Ohio, a unit of American Electric Power (AEP)


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This policy was last revised on December 13, 2017.

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