How Does COGEN save you money?

• COGEN produces electricity 30% more efficiently than power plants

• COGEN produces free gas (heat) by recycling the engine exhaust heat

• COGEN by-passes the customer’s inefficient burners, boilers and chillers

SDP can install its unit(s) at a customer’s site in its fully enclosed attractive housing, working closely with the local utility company to ensure compliance and efficiency, and significantly lower the customer’s electricity bill. Customers who install a 1Meg COGEN system may recover their entire investment in savings over a 1-3 year period. Owners/customers in California who install COGEN receive a rebate of $600/Kw (this equals $150,000 on our 250Kw model). The rebate is based on the output performance and customer must utilize at least 65% of the heat generated to qualify. SDP “owns and operates” many of its units and simply provide electricity on a service basis to its customers with the same turnkey service and discounted electricity costs on customer’s utility bills.

Total Turnkey Cost for 1 MEG System	$1,900,000
Less Rebates under SGIP Program and Rule 38	($ 600,000 +$ 60,000)
Net Investment in COGEN System	$1,240,000
Net Yearly Savings	$520,152
Pay Back Period is 2.4 Years
IRR is 42% before cost of money