Combined Heat and Power Focus

CHP Incentives

Installing CHP plant can lead to significant fuel, cost and emissions savings over conventional, separate forms of power generation and heat-only boilers. However, capital costs are high and payback periods can be long. The UK Government has introduced a number of fiscal and financial support mechanisms designed to improve the economics of low carbon energy generation technologies, including CHP.

Both fossil fuel and renewable fuel fired CHP plant may qualify for support from the following three schemes:

• Climate Change Levy Exemption 
• Enhanced Capital Allowances
• Business Rates Exemption    

 

Renewable CHP technologies may also qualify for support from the following renewable energy incentive schemes:

• Renewables Obligation
• Renewables Heat Incentive
• Feed-in Tariff

 

Fossil fuel fired CHP schemes fuelled by hydrocarbon oils may qualify for support from:

• Hydrocarbon Oil Duty Relief

 

Any support received from the above programmes is in addition to the commercial value of any heat and power generated.

 

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