Restructuring in the electricity industry and the increasing use of electrical and thermal energy in the world has led to the more efficient use of combined heat and power (CHP) systems. On the other hand, investing in CHP systems will be beneficial for its owners; however, it is necessary to consider various limitations such as environmental pollutants in planning. In this study, environmental pollutants’ cost effect on the profit and optimal location of various CHP technologies, including microturbine, internal combustion engine, and the fuel cell, is investigated. Features are presented in this chapter, providing a comprehensive model for optimal placement of CHP, considering nonrenewable sources, electrical and thermal energy networks, annual planning for a 5-year horizon, and the cost of environmental pollutants. The proposed model is implemented in the GAMS software environment. The results show that the profit of resource owners depends on the type of technology used. It has also been found that the optimal installation location of the technologies used is affected by environmental pollutants.