What is Combined Heat and Power?
Combined Heat & Power systems, or CHP for short, work by taking biomass or gas and converting it into electricity. CHP has the additional benefit of free hot water as a byproduct.
What are the Advantages of Combined Heat & Power?
Highly Efficient
A great benefit of CHP systems is that they are highly efficient and can operate entirely off-grid, making them a great solution for businesses that are looking to be sustainable. CHP systems can be operated with a variety of fuels, such as Biomass, Biogas, Natural Gas, LPG as well as Hydrogen.
Lower Energy Costs
CHP systems can deliver energy savings of up to 40%. This offers a consistent ongoing reduction in energy costs because the energy generated onsite can remove the need for a third-party electrical supplier.
In addition to reduced ongoing energy costs, it is possible to install a CHP system via a PPA contract, which means there are generally no upfront capital costs. In some cases, it may also be possible to claim back tax on the procurement of CHP systems, although it is best to check this with HMRC.
Reduced CO2 Emissions
A CHP system is typically fuelled by natural gas, which greatly reduces CO2 emissions. However, by using biomass, biogas, or hydrogen as the fuel source for a CHP system, it is possible to further reduce CO2 emissions to the point where it can essentially be carbon-neutral.
In addition, CHP systems help to reduce loss from the Grid supply route by around 35% because the supply of power is close to the source of use.
What are the Disadvantages of Combined Heat & Power?
Large Scale
CHP systems are generally only suitable for premises with a constant demand for heating and hot water, such as a hotel, spa, or swimming pool. It is not an economical solution for smaller businesses simply wishing to heat office space.
Higher Capital Cost
There is also a high capital cost for installing a CHP system. While this cost can be recouped over the long term, it makes it a less financially sound investment for smaller scale installations.
What Businesses Benefit from CHP?
A CHP system is ideal for a business with power and hot water needs such as a hotel, spa, or swimming pool. Essentially, a CHP system could generate a hotel’s electric air conditioning and other electric needs while producing enough hot water to fill a swimming pool or to be used by an adjacent spa at no extra cost. Equally, a CHP system is ideal for businesses that need to deep clean food-use tankers and equipment.
Conclusion
In conclusion, a Combined Heat & Power system is highly efficient, lowers energy costs, and can greatly reduce CO2 emissions, but it is most suited to businesses with a high demand for the free hot water that CHP systems produce as a byproduct.
Ready to embark on your CHP journey?
Take the first step towards energy independence and sustainability by exploring CHP solutions tailored to your business needs. We are experts in green energy generation and can support your business in decarbonising. Together, we can power a brighter tomorrow with the limitless potential of solar energy.
Contact us on 01733 595150 to get started.