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 the heat from a CHP Scheme delivered to satisfy an economically justifiable demand for heat or cooling.
For example: Heat used for drying the incoming biomass or waste fuel to the CHP plant may be classified as a useful CHP heat output,
but only if it can be demonstrated that such a use of heat is an economically justifiable precursor to the combustion of the fuel within the CHP plant.
This means that it must be demonstrated that the drying of the fuel using boiler plant independant of the CHP could be justified economically as an
alternative to using CHP heat, taking account of the required capital expenditure, operating and maintenance costs and the resulting benefit
(including the capital cost of the alternative boilers and the cost of the displaced fuel that would otherwise be used for the drying).
A simple ‘payback’ analysis should be included:
Simple Payback=Capex of Alternative Boilers / [Theoretical benefit from improved efficiency-cost of fuel]
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?
You can review the grants and loans available on the DECC webpage detailing support for emerging technologies.
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
