Cogeneration through combined heat and power (CHP) is the simultaneous production of electricity with the recovery and utilisation of the heat produced.

Cogeneration is a highly efficient form of energy conversion and it can achieve primary energy savings of approximately 40% by compared to the separate purchase of electricity from the national electricity grid and a gas boiler for onsite heating. The waste heat from these systems can also be used to create free chilled water via an absorption chiller. These systems are truly ideal for cannabis cultivation because cannabis cultivation requires a massive and constant electricity load which requires a proportionate amount of cooling and heating to properly maintain environment.

Generally these systems are fueled using either natural gas or biofuels which produce large amounts of carbon dioxide as a byproduct of combustion. This CO2 is also extremely valuable to cultivators.

A 700kw CHP system can save a facility upwards of one million dollars in yearly operating costs.