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PERC‘s Alternative Technology Demonstration & Research Program, or Alt Tech Demo Program for short, is helping commercial and industrial businesses adopt propane technology equipment, specifically combined heat and power (CHP) systems and propane cooling. Launched in January 2025, the Alt Tech Demo Program is designed to gather insights on propane use in the commercial building sector. Participants will complete a survey detailing performance, emissions, gallon usage, run hours, cost data, and energy savings after installing propane CHP or cooling equipment. Participants who contribute data to the program can earn compensation for their participation. By participating, businesses not only benefit from advanced energy solutions, but they also play a pivotal role in shaping the future of propane technology.
Propane Cooling and CHP for Commercial Operations
Incorporating propane cooling and/or combined heat and power systems in commercial and industrial operations provides a solution to the challenges of grid instability and combats power losses and the increasing cost of electricity. Propane provides a more reliable, resilient, and affordable energy option.
Combined Heat and Power
Combined heat and power systems use propane-powered engines to generate on-site electricity while capturing thermal energy for space heating and hot water. This means facilities generate their own electricity and thermal energy at a lower cost than buying from the grid. Excess electricity can be sent back to the grid for additional savings, and CHP can also act as a backup power source during grid outages. Propane-powered CHP units offer reliable, efficient, on-site power, all while providing significant cost savings, minimizing waste heat, and reducing emissions. These systems also reduce a facility’s electricity consumption, which helps to stabilize the grid and ease congestion during peak demand.
For the Alt Tech Demo Program, qualifying CHP equipment must be fully certified, commercially available, and installed in a commercial facility within the U.S. For sites less than 15 kW, such as light commercial facilities, small restaurants, standalone medical clinics, and server rooms, compensation is $12,000. For sites greater than 15 kW, such as commercial, heavy commercial, industrial, educational, multifamily, assisted living facilities, data centers, and hotels, compensation is $30,000.
Propane Cooling
Propane cooling systems operate like traditional cooling systems but use propane to power the compressor or ignite the gas burner. They are available in sizes from 5 to 400 tons and serve diverse needs, including comfort conditioning, process cooling, dehumidification, medium-temperature refrigeration, and extreme ambient operation. Propane cooling systems significantly reduce electricity requirements and avoid costly infrastructure upgrades, making them ideal in areas with high electric rates and limited infrastructure.
For the Alt Tech Demo Program, qualifying propane cooling equipment must be fully certified, commercially available, and installed in a commercial facility within the U.S. The compensation is based on the equipment tonnage, at a rate of $300/ton:
- Light commercial equipment is typically 5T-25T
- Commercial equipment is typically 25T-100T
- Heavy commercial equipment is typically 100T+
Understanding the Application and Compensation Process
Important criteria will be taken into consideration when selecting the best possible candidates for the program such as the applicant’s ability to record and supply data, the type of business, the proximity to another program applicant, the number of propane gallons used by the applicant, and the total pieces of equipment purchased under the program.
The business contact receiving the propane equipment is responsible for the Alternative Technology Demonstration & Research Program application. Partners (marketers, state executives, or contractors) can assist with the application, but it must be submitted by the entity that will be receiving the technology. PERC will review the application and communicate the approval of the application to the applicant and a contract will be signed. The applicant is responsible for working with his or her propane marketer, the OEM, and contractors for purchasing and installation. Once the equipment has been installed, properly tested, and received any final approvals (if required), PERC will then award the compensation.
Help Inform Research into Propane’s Use in Commercial Buildings
Incorporating propane equipment such as CHP and propane cooling systems into commercial buildings can provide building operators with a measure of independence from the electrical grid and assurance that they have dependable power and heat at a lower cost. Applicants approved for the Alt Tech Demo Program receive additional financial benefits just for providing valuable data to further the industry’s research into propane’s use in the commercial sector.
