Three combined heat and power systems have been sold to an unnamed boutique hotel group in New York City in a contract valued at US$1.76 million.

Under the terms of the deal the supplier, Tecogen Inc, will include both the prepackaged CHP units as well as the turnkey installation. Each of the InVerde 100 modules (pictured) will supply 100 kWe and around 200 kWth, and will operate in tandem with the Consolidated Edison city grid.

Each InVerde module will also be equipped with Tecogen’s emission system, Ultra, reducing emissions of pollutants to levels commensurate with fuel cells and far lower than the existing boilers.

The project will qualify for upwards of $1800 per kW of incentives from the CHP Acceleration Program administered by the New York State Energy Research and Development Authority (NYSERDA).

In this application, each InVerde module is estimated to save $69,000-$89,000 annually, and when combined with New York State CHP incentive funds, payback for the hotel group for the three projects will be two to three years, Tecogen claims.

‘We’re excited about the hotel market in Manhattan,’ said Robert Panora, Tecogen’s president and COO. ‘Electricity rates in New York City are the highest in the country.’ Panora added: ‘Hotels and other businesses in New York City have to consider how vulnerable they will be if a large-scale grid outage occurs or another disaster hits like Hurricane Sandy. Small, high-end hotels don’t want to get caught without any amenities in a situation like that.’