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Combined heat and power (CHP): Financing options 


If you cannot pay all the costs of installing a combined heat and power (CHP) system upfront, there are a number of financing options, including those listed below.

The CHP technology overview (PDF) gives an introduction to CHP, its design, selection, installation and operation.

 
 

Introduction Financing options
Types of technology Top 3 carbon saving measures
Site suitability and feasibility Publications and resources
Business case

 

Financing options


•  Energy efficiency financing
The energy efficiency financing scheme offers leases loans and other financing options to all types of organisations seeking to reduce their energy use. Interest-free loans may be available to businesses in Northern Ireland and Wales.

• Equipment supplier finance
Many suppliers offer to supply and maintain the equipment free of charge. Under such an arrangement, the host site typically pays for the gas consumed by the system and purchases the generated electricity from the supplier at a reduced price, as well as receiving the heat at zero cost.

• Energy Services Companies (ESCOs)
With ESCOs you enter into a long–term contract (typically 7–10 years) with an energy services company (ESCO).   Usually, the ESCO will pay for all the system’s costs.  In return, you will have pay a fixed fee and agree to buy energy at an agreed unit price – although shared savings approaches also exist.

• Feed-in tariffs may provide a further source of income for Micro-CHP. Find out more about feed-in tariffs or see our Feed-in tariffs Policy and Markets guide (PDF) for further details.


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