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Get incentives for custom projects that improve your energy efficiency.

PECO offers incentives for custom projects, so commercial and industrial customers can propose energy efficiency solutions designed to meet the unique needs of their facility. Every business is different, and every facility offers its own set of distinct opportunities for improving energy efficiency.

If you have an idea for a custom project that could reduce your energy use, Let's talk about it.

Customer implemented energy efficiency measures that are not listed elsewhere are considered to be custom. Custom measures generally require pre/post upgrade trend data (either equipment level or whole building level) as the basis of savings. The International Performance Measurement and Verification Protocol (IPMVP) is typically used to qualify and quantify those savings. The custom savings analysis extrapolates savings to one year and those extrapolated kWh savings are incentivized at $0.10/kWh. The sections below list some common custom measures and the requirements specific to them.

Combined Heat and Power (CHP)

Combined Heat & Power (CHP) is defined as the concurrent production of electricity and useful thermal energy (typically heating and/or cooling) from a single fuel source. CHP systems capture thermal energy from hot exhaust gases or jacket water, for example, for use in, space heating, cooling, domestic hot water, dehumidification, and process heating.

Installing one of these systems can help improve operating efficiency, cut energy costs. reduce emissions and improve resiliency.  Incentives are available up to $2.0 million for installing a CHP system at your facility.


All commercial, industrial, government and institutional customers (rate schedules HT, PD, GS and EP) in PECO's service territory.

Eligible projects must meet the following criteria:

  • Prime mover technology is gas or steam turbine, reciprocating engine, or fuel cell.   
  • Designed to be base loaded and utilize thermal heat recovery.
  • Installed, operational and approved by PECO on or before May 31, 2026.

Installation must be at the customer's facility and provide 100% of the energy benefits as stated in the application for a period of 20 years or for the life of the equipment, whichever is less. PECO has the right to claim a pro-rated amount of any incentive paid if the customer ceases to be a distribution customer of PECO, or removes the equipment or systems at any time during prescribed system life above


The incentive is performance based and will be equivalent to $0.10/kWh of net production (gross CHP electric output less parasitic load) for a period of one year.  Incentives are capped at 50% of project cost or $2,000,000 whichever is lower. Contractor labor costs can be considered in the total project cost, while customer internal labor costs cannot.

Once the project is commissioned and considered operational PECO will coordinate to arrange for system trend data capture to establish system performance.

Metering Agreement:

The customer agrees to meter CHP system data in order to satisfy the terms of the incentive payments. System data includes, but is not limited to, time stamped values of: power output (kW), electricity production (kWh), parasitic loads (kW), and thermal energy production (MBtu/hr).

Helpful Resources:


Energy Management System (EMS)

The EMS measure is available for installation of web-based building automation systems in existing buildings that currently have no digital automated HVAC controls or have outdated pneumatic control systems with inoperable time control functions. Existing HVAC control systems must not have time-of-day scheduling. Upgrades of obsolete energy management HVAC systems with inoperable time clock functions will be reviewed on a case-by-case basis for incentive eligibility. This incentive cannot be combined with incentives for programmable thermostats or setback-setup controls. The application must include the controls strategy implemented. Site-specific data (equipment-level trend data or utility meter data) is required to quantify savings which are produced by control strategy measures implemented by the EMS. Incentives will be $0.10/kWh of demonstrated annual savings.

Demand Control Ventilation (DCV)

DCV provides the capability for a ventilation system to automatically reduce outdoor air intake below design rates when the actual occupancy of spaces served by the system is less than design occupancy. Site-specific data (equipment-level trend data or utility meter data) is required to quantify savings which are produced by the reduction of outdoor air rates incurred because of the DCV. Incentives will be $0.10/kWh of demonstrated annual savings.

Retrocommissioning (RCx)

Retrocommissioning is a systematic process to improve an existing building's energy control and performance. RCx project submittals should include a description of those measures implemented and the date range when they occurred. Site-specific data (equipment-level trend data or utility meter data) is required to quantify savings which are produced by the implemented RCx measures.

Two Easy Steps to Get Started

  1. Determine project eligibility.
    Projects completed on or after June 1, 2021 are eligible for incentives. Contact us and we'll help you get started.
  2. Complete your energy efficiency project and enjoy your savings.
    Submit your application through our online application center, and we’ll work with you to ensure you receive your savings as soon as possible. Lower energy use, verified annual energy savings and reduced greenhouse gas emissions are just the beginning.

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