Tecogen Technology to be Deployed for
Energy Efficiency and to Reduce Grid Congestion

Gas Energy Efficiency Program with IncentiConnecticut DPUC Decision Supportsves

WALTHAM, Mass., January 24, 2006 - Tecogen Inc., a leading manufacturer of commercial and industrial gas-powered chillers and cogeneration systems, announced that the State of Connecticut accepted a plan to reduce electric load on the grid by supporting incentives for natural gas eng ine-driven equipment for replacement of old electric chillers or instead of installing new electric chillers. "Connecticut rate payers are facing substantial increases in federally mandated congestion charges," said Bob Panora, president of Tecogen. "Under Connecticut's progressive legislation known as the Energy Independence Act, our equipment will help to minimize load, during the air conditioning season, when electricity rates are the highest and the grid is at greatest risk of overload. "Under the Gas Energy Efficiency Program, Tecogen and their Connecticut representative, Clover Corporation, East Hartford, CT will replace less efficient electric chillers and install new natural gas-driven chillers. An important feature of the program is to analyze the peak load reductions and source-BTU (fuel) comparison that are achieved with natural gas engine-driven chillers. Reducing the electric peak and fuel source costs will reduce electric rates and benefit the environment. A program of $ 2.25 million h as been approved by the state to eliminate up to 3 MW of load under this Gas Energy Efficiency Program. End users can apply for incentives, until the allotted funding is used or April 30, 2007, whichever is earliest. Tecogen Inc. operates in the distributed generation market and is a leading manufacturer of natural gas-fueled commercial and industrial cooling and cogeneration systems. Tecogen has an installed base of more than 1,200 units, which it supports through an established network of engineering, sales, and service support. Tecogen is based in Waltham, Massachusetts with service centers located in nine regions of the United States. For more information, go to www.tecogen.com

About Tecogen
Tecogen operates in the distributed generation market and is a leading manufacturere of natural gas-fueled commercial and industrial cooling and cogeneration systems. Tecogen has a nationwide installed base of more than 1,800 units, which it supports through an established network of engineering, sales, and service support. Tecogen is based in Waltham, Massachusetts with service centers located in nine regions of the United States. Go to www.tecogen.com