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The fossil-fueled Combined Heat and Power (CHP) incentive ended July 1, 2018.

The fossil-fueled Combined Heat and Power (CHP) eligibility for incentives ended July 1, 2018. Thank you for your interest and your applications.

Program Application FAQs

Who can take advantage of this technology?

Mainly Large Commercial and Industrial customers - call us to see if your business qualifies at 1 (866) 650-4709.

How do I get started on submitting a PSU project application for my CHP program?

1. Work with your Conservation Account Manager (CAM) to submit your application.
2. If you do not have a CAM, call us at 1 (866) 650-4709 and we will assign one to your business and/or assist you with your application.

What is the process for submitting a PSU project application?

What includes a completed application?

You will need a completed application form, and supporting documents. Examples of supporting documents include, but are not limited to, a complete feasibility study or analysis that meets the PSU program rules.

What are key dates I need to know?

In order to meet the July 1, 2018 application deadline, Hydro One strongly suggests the following timeline for eligible CHP applications:

  • Complete Project Incentive (PI) applications should be submitted by May 1, 2018. This will give you and/or your consultant enough time to revise the application package if IESO-TR does not deem the application complete.
  • Complete Small Capital Project (SCP) applications should be submitted by June 1, 2018. This will give you and/or your consultant enough time to revise the analysis if IESO-TR does not deem the application complete.

Can I apply for this program if my CHP is islanded from the distribution grid?

Currently, behind-the-meter generation systems that are operating either in-parallel or islanded from the distribution grid may apply for the PSU incentive as long as they meet other program requirements. Please identify your CHP connection (on or off the grid) as there are different processes depending on your situation.

Do I need to sign a Connection Cost Agreement (CCA)?

In case of generation systems that are operating in-parallel with the distribution grid (i.e., either the generator or the load could be connected to the grid), a Connection Cost Agreement (CCA) between you and Hydro One needs to be signed before your PSU Incentive contract is finalized.


Major savings and efficiencies

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Cut waste, capture the savings

A CHP system is often more efficient than power from the grid and heat from boilers, cutting costs and consumption.

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Reliable and Independent

CHP provides a reliable backup during storms or emergencies by isolating from the grid.

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Safe and Secure

CHP delivers reliable power without on-site fuel storage.

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Reduce Greenhouse Gas Emissions

CHP systems require less fuel to produce the same output as conventional systems.


Opt in to great incentives

1 Up to 100 per cent
Up to $50,000 for the cost of an Engineering Feasibility Study.

2 Up to 40 per cent
Of the total project cost for projects delivering up to 10 MW of electricity.

Roadmap to implementation

From initial consultation to in-service, a CHP system will take approximately two years to bring online.

Phase 1

Check this calculator to see if there is capacity to connect your facility to one of our stations or feeders.

Phase 2

An initial consultation with our team to determine whether you are a good fit for CHP.

Phase 3

An Engineering Feasibility Study will not only help support capital decisions but is also required to obtain approval of your CHP project in most cases. We can help you secure funding up to $50,000 for a consultant to conduct this study or you can complete with your own resources (allow 12 weeks).

Phase 4

We will work with you to complete the necessary agreements and apply for funding to build your plant (allow six months).

Phase 5

Upon approval, you may begin construction. In most cases incentive payments are paid after the build is complete (allow one year or more for the construction phase).

Project incentives are paid within the first year after implementation.

Click here to view the list of downloadable documents.


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$5.8 million

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