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What is CHP and how can it save the planet and save you money?


Energy prices have risen faster than inflation in the last decade and forecasters are predicting they will continue to rise. For many UK businesses, energy is one of their biggest costs. How can CHP help?

 

What is CHP and how can it save the planet and save you money?

There’s no arguing, energy is expensive, but did you know that on average we waste 60% of it?

Nearly two-thirds of all the energy produced when we generate electricity using conventional means is lost through inefficiencies.

With CHP the typical energy efficiency level is 80%, with some customers able to achieve an efficiency level of 95%.

So how does CHP work?

CHP, also referred to as ‘combined heat and power’ or ‘cogeneration’ is the process of simultaneously generating heat and power within the power generation process.

Put simply: when we generate electricity via conventional methods, heat is produced as a by-product. In the standard process, this heat energy is wasted. With cogeneration, the heat is captured and used for heating.

Customers get heat and power from one process and therefore reducing the reliance on a separate boiler.

How can CHP save the planet?

The use of cogeneration can vastly reduce your carbon footprint.

Because it’s so efficient, you need less power to be generated to run your business, so much less carbon is released into the atmosphere. Typically operators see a 30% reduction in carbon emissions.

Our CHP engines are fuel neutral, meaning they can run with both renewable and fossil fuels. This means our customers can make a greener choice by opting to use biogas or other carbon-neutral fuels.

How does CHP save you money?

CHP has been shown to reduce energy bills by 20-30%.

This is down to the increased efficiency of the process and also because it’s cheaper to generate your own power with a CHP generator than it is to get it from the national grid.

Another way you can save is with government incentives. As the UK is moving towards greener energy, the government is making CHP a really attractive option.

CHP customers can be exempt from the Climate Change Levy, the Carbon Price Support Tax and many more.

CHP government incentives

How much will I save with CHP?

Savings depend on how much heating and electricity you require and also the current price you pay for electricity.

It is possible for medium-sized CHP applications to save around £40,000 p.a. and for larger applications savings of around £100,000 p.a. are possible.

Who benefits most from CHP?

CHP works best for companies that are able to use the heat. For example, a hospital that has large energy requirements and needs to heat 300 rooms will likely save a lot with the installation of a CHP system. On the other hand, a doctor’s surgery with 15 rooms will probably not see huge savings.

Having said that, CHP is now fully scalable and Micro CHP units are available for smaller enterprises and even homes. These units are a greener and cheaper alternative in the long run.

Some of the key industries that benefit are:

  • Hospitals, care homes, and clinical facilities
  • Universities and student accommodation
  • Hotel and Leisure facilities
  • Manufacturing and industrial sites.

Is CHP right for you?

We work with you to find out if CHP is going to save you money. We take into account your energy bills and your electricity and heating requirements so you can be sure when you buy with us that you will save money.

To find out more about how CHP can work for you, speak to a member of our team.

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