Micro Combined Heat and Power

Micro CHP

Micro combined heat and power

Micro combined heat and power (Micro-CHP) is a heating technology which generates heating and electricity simultaneously, from the same energy source, in your home. 


What are the benefits of Micro-CHP?

When the micro-CHP is generating heat it will also generate electricity as a by product to be used in your home. By generating this electricity on-site you are saving significant amounts of carbon as there are minimal losses occuring compared with the grid.
Installation is easy. If you already have a conventional boiler then a micro-CHP unit should be able to replace it as its roughly the same size.
Micro-CHP is also eligible to generate financial income through the feed-in tariff (see below).

What are Feed-In Tariffs?

Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010. Under this scheme energy suppliers have to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as wind turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.

If you are eligible to receive the FIT then you will benefit in 3 ways:

1. Generation tariff - a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).
2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn't used on site. The export rate is the same for all technologies.
3. Energy bill savings – you will be making savings on your electricity bills, because generating electricity to power your appliances means you don't have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Visit the Energy Saving Trust to see how much you may be able to earn.

Costs and Savings

Under the new Feed-in Tariff scheme, set up by the government, it is possible to receive 10 pence per unit of electricity generated, and an additional 3 pence per unit for each unit exported.

Typical installed costs are from £5,500

Grants and Discounts

Installing an energy efficient measure in your home may not cost as much as you think. You may be eligible for a grant or discount to cover the costs of your installation. To find the right offer for you search the Energy Saving Trust's Grants and Discounts Database. The tool is easy to use and only takes 5 minutes to complete.

Further Information

To find out if micro-CHP is suitable for your home visit the Home Energy Generation Selector Tool.

For further information contact:

Energy Savings Trust Advice Centre: 0800 512 012