In recent years, the use of CHP in commercial buildings and multi-residential complexes has increased steadily. This is due largely to technical improvements and cost-reductions in smaller-scale, often pre-packaged, systems that match thermal and electrical requirements. Examples of commercial and institutional CHP users include hotels, offices, and hospitals, which tend to have significant energy costs as a percentage of total operating costs, as well as balanced and constant electric and thermal loads (the temporal coincidence of heating / cooling demand with electricity demand can be particularly important for these applications).

Many owners of commercial and residential properties are not aware of opportunities to install CHP, as energy is not part of their core business, limiting application of CHP technologies. However, commercial companies are increasingly considering CHP as a cost-effective way to reduce their carbon footprint.  Residential "micro" CHP technologies are also beginning to be developed and sold at the individual household level, and thus represent a potential mass market CHP product, provided fully competitive and reliable products can be brought to market (Japan Gas Association 2007; COGEN Europe 2008).