Toronto Hydro Onboard with SaveOnEnergy Initiative

The SaveOnEnergy program was developed for energy conservation initiatives in Ontario. As part of the program, business are awarded monetary incentives for implementing projects that alleviate stress on over-taxed power grids. One such program is Behind the Meter Generation (BMG) using Combined Heat and Power (CHP) systems employing natural gas generators.

What it is

CHP consists of a natural gas powered generator (or generators) that interconnect with a buildings power distribution network, producing up to 80% of required usable electricity at a substantial reduction in cost.  The programs required efficiencies are realized by the re-utilization of waste heat energy that is transformed into usable energy, reducing fuel consumption from boilers and make-up air units.

Most recently, Local Distribution Companies (LDC) are encouraging the use of these CHP natural gas generators in promotion of the SaveOnEnergy incentive.  The following is what Toronto Hydro is saying about this progressive solution to produce your own electricity.



Combined Heat and Power (CHP) – an efficient, proven solution

A CHP system offers three key benefits:

·         Reduced electricity costs

·         Lower heat generation costs

·         A reliable system for critical requirements, replacing the need for emergency backup

Generate power and heat from one fuel source

CHP may be a smart choice if you have an ongoing need for both electricity and thermal energy. Both requirements must be present to make CHP viable.

The system can be powered by a variety of fuels including natural gas (the most common choice), biomass, biogas and waste heat. The lower fuel cost, together with the overall system efficiency, drive the savings for both electricity and heat.

Additional savings are achieved through avoided transmission and distribution costs.


Apply for Process & Systems incentives up to 100%

Because the implementation of a CHP system means that you will be generating power, you will be required to provide an engineering study to build a CHP plant at your site. We offer funding up to 100% of the costs for a detailed engineering study for this purpose.

Then you can qualify for incentives of up to 40% of the total project cost to implement your CHP system.

Before you upgrade current systems, consider CHP

If you’re faced with upgrading boilers or backup generators, a preliminary engineering study can help you decide whether to implement a CHP system instead.

It may be able to replace a significant percentage of a boiler’s output while also generating electricity. Compared to diesel generators, a CHP system eliminates the need to store diesel fuel onsite and ongoing systems testing.

With simple paybacks from below 10 years and an expected lifespan in excess of 20 years, a CHP system makes good economic sense.

A backup system for critical electrical requirements

Under normal operating conditions, a CHP plant generates electricity behind the meter matching thermal load of a facility drawing some power from the grid. However, during emergency circumstances, with grid power not available, a CHP can also operate as an electrical island to seamlessly power essential industrial processes, elevators, lighting and vital equipment, avoiding downtime and inconvenience.


Up to 10 MW capacity

The incentives are for projects that deliver electricity at an annual efficiency of 65% up to a maximum of 10 MW. Plants should be designed as thermal load following. Generally, industrial projects fall between two to three MW, while multi-residential projects are typically between 300 to 500 kW.

Typical CHP users

Today, the most common implementations of CHP systems are seen in:

·         Industrial facilities

·         Manufacturers

·         Food processors

·         Pharmaceutical companies

·         Universities

·         Hospitals

·         Multi-residential buildings


How do I get started?

The first step to getting your own CHP system is to contact us in order to complete the Detailed Engineering Study (DES) for the prospective building.

Rikos will:

  • Visit your building to see if the building is a good candidate for a CHP system.
  • Make preliminary sizing calculations in order to apply with your local LDC to complete a full DES.
  • If approved, the cost of producing a DES is 100% paid for by the LDC, through the SaveOnEnergy program.
  • The DES will give you all the answers you need on construction costs, implementation, expected savings on utilities, how much power can be generated, etc.

Once all the questions are satisfied, a decision can be made whether or not to move forward with the project. Contact us for more information on this exciting technology.



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