Commercial CHP (combined heat & power)
- Enjoy low energy costs on heat and electricity
- Tax benefits for qualifying CHP schemes
- Biomass, Natural Gas and LPG powered systems
If your business uses both electricity and heat, you could benefit from switching to a combined heat and power system (CHP). You could also become independent from the National Grid.
How Combined Heat and Power systems work
CHP works by capturing and using the heat created when electricity is produced. Normally, this heat would be considered as an unwelcome by-product of electricity generation, and would be wasted through deliberate cooling. But with CHP it’s used to heat water instead.
The result is a highly efficient energy system which minimises energy waste – so it’s cost-effective, and better for the environment.
Combined heat and power generation is also called cogeneration, because two forms of energy are generated at the same time. Heat is the lead generator, and most units are sized based upon the heating base load.
Is CHP a ‘renewable’?
CHP generation is certainly more energy efficient – but whether or not it is strictly a ‘renewable’ technology depends on the fuel used in the CHP boiler.
Some combined heat and power units use natural gas or LPG. Although these aren’t powered from renewable sources, these CHP units are very much more efficient than conventional boilers. In this instance CHP probably presents the most efficient way to use fossil fuels.
Biomass CHP boilers are also available, which offer greater environmental credentials, and potentially more financial incentives from the government too!
Capital outlay and ROI
Commercial combined heat and power systems usually require a significant investment. It’s a long-term decision, as the payback time can be longer than for other renewable technologies, depending on the fuel used. But for some businesses who are significant energy users, it can absolutely be the most cost-effective decision.
Our energy consultants will work alongside you to explore your energy use and whether CHP is the right solution for your business.
As the government is keen to encourage more efficient energy generation, there are several tax benefits available for installing a qualifying CHP system. These include an exemption from the Climate Change Levy; Business Rating Exemption; and the Enhanced Capital Allowances scheme.
For CHP units which are powered by renewable fuels, other benefits apply, including the Renewable Heat Incentive.
The terms of the various schemes need to be read carefully, and the government’s Combined Heat and Power Incentives web page gives full details.
Our complete CHP service
We offer a complete commercial CHP service, from consultancy to installation. We offer:
- An audit on your current energy use, and advice on suitable systems for your needs.
- CHP plant design
- CHP installation and commissioning.
- CHP servicing and maintenance.
- Help and advice with the necessary processes and paperwork.