Basic Information
What is the operating life of a CHP unit?
CHP units are usually run until the cost of operating them exceeds any savings they make, or their reliability falls below the operator's requirements. Typically we would expect a packaged CHP to last 15 years. A large CHP plant may have an operating life of 25 years or more. Analysis of the return on investment will show when a specific scheme will have recovered the cost of installing the scheme, this period is typically shorter than the plant operating life.
What is the capital cost of a CHP system?
There are many factors to consider when quantifying the capital costs of installing a CHP system. We suggest reviewing the detailed feasibility study and financing options sections of the CHP manager's guides.
What are the operating costs of a CHP?
There are many factors to consider when quantifying the operating costs of installing a CHP system. We suggest reviewing the detailed feasibility study and costs appraisal sections of the CHP managers guides.
What are the financial savings I can expect from a CHP scheme?
The financial savings will vary accourding the specific scheme. A feasibility study would be required to quantify the potential savings.
What are the carbon savings I can expect from a CHP scheme?
The carbon savings will vary according the specific scheme. A feasibility study would be required to quantify the potential savings.
How do I choose which CHP unit to use?
The CHP unit you specify depends on your requirements. Therefore choosing a CHP system would require a feasibility study, tendering for the installation of a CHP system and choosing the system that suits your needs most cost effectively. The various technologies available can be reviewed in the prime mover sections of the CHP manager's guides.
What is the definition of useful heat?
Useful heat is typically defined as heat that displaces heat generated in a boiler.
Boiler heat used for power generation and heat that would not otherwise be generated are not considered useful heat.
Are there any grants or loans available for the costs of installing CHP?
Bio-energy Capital Grants Scheme
This scheme supports the installation of biomass-fuelled heat and combined heat and power projects in the industrial, commercial and community sectors. The installations must be in England.
Capital grants are awarded to support the installation of biomass-fuelled heat boilers and biomass-fuelled combined heat and power (CHP) equipment, including anaerobic digesters for heat-only or CHP. The scheme is open to the industrial, commercial and community sectors. This includes, but is not restricted to, public and private limited companies (Ltd and plc), sole traders, farmers, local authorities, hospitals, universities, schools, housing associations, charities etc. Householders and individuals are not eligible.
Applications can only be made by the ultimate owner of the biomass boiler or CHP plant. The grants are at variable rate of up to 40% of the difference in cost of installing the biomass boiler or CHP plant compared to installing the fossil fuel alternative. This is subject to a maximum single award of £100,000 per installation. Applications covering several installations can apply for up to £100,000 for each installation. There is no minimum award threshold.
No new applications are currently being accepted, however, subject to funds being available, Defra hopes to run a further application round in Autumn 2008, and several rounds in 2009 and 2010. Details of these rounds will be announced in due course. For further information:
Low Carbon Buildings Programme
This programme provides grants for the installation of microgeneration technologies in a range of buildings to include households, community organisations, public, private and the non-profit sectors and will fund a number of technologies including:
- Renewable CHP
- MicroCHP
Householders can apply for grants of up to £2,500 per property towards the cost of installing a certified product by a certified installer.
The programme is managed for BERR by the Energy Saving Trust and is part of the UK Environmental Transformation Fund (ETF); a joint BERR/ Defra fund to bring forward the demonstration and deployment of carbon energy and energy efficiency technologies.
Carbon Trust interest free loans
Energy-Efficiency Loans from the Carbon Trust are a cost effective way to replace or upgrade your existing equipment with a more energy efficient version and include CHP
Small or medium-sized enterprises (SMEs) in England and Scotland, or all businesses in Wales* that have been trading for at least 12 months, could borrow from £5,000 to £100,000. It is unsecured, interest free and repayable over a period of up to 4 years. There are no arrangement fees and applying is straightforward.
However, all businesses based in Northern Ireland* that have been trading for at least 12 months may be eligible to apply for an unsecured interest free loan of up to £400,000.
*Subject to eligibility. Regional variations apply.
What fiscal incentives are there to encourage the take up of CHP?
CHPQA Programme
Through the CHPQA programme the Government has put in place three main incentives to encourage the take-up of 'good quality' CHP:
- Exemption from the Climate Change levy
- Investment in a CHP plant may qualify for an Enhanced Capital Allowance (ECA). This enables a business to claim 100% first-year capital allowances of their spending on qualifying plants and machinery. Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment.
- Exemption of Power Generating Plant & Machinery from Business Rates.
Further information from the CHPQA programme.
Where can I can find published UK CHP statistics
The Digest of UK Energy Statistics is published on the BERR website chapter 6 has the CHP statistics
