September 13, 2022
September 13, 2022
Combined Heat and Power, or CHP, is a method of creating heat and electricity simultaneously. It does this by capturing the heat generated by its electricity generation, making it much more efficient than other electricity-generating methods, as it does not waste lots of the energy it churns out in the form of heat.
CHP will drastically reduce a business's energy usage and costs, as they will no longer have the need for a conventional boiler as their heat and hot water will come directly from the electricity generated by the CHP system they have installed.
To understand CHP, you must know the process of the system, here is the step-by-step process by which CHP generates electricity and recovers heat:
Sorry to complicate things, but there are various types of CHP systems which make use of different types of fuels and are viable for different spaces and businesses.
There are various benefits of CHP, as they not only cut costs and energy usage but are better for the environment as they can drastically reduce your carbon footprint.
A clear benefit of CHP which we have mentioned throughout this blog is the reduction is energy costs which you are likely to receive when installing CHP, as you will be replacing your current boiler with the heat and hot water produced by the CHP unit, all of the costs which are associated with it will be cut! As we all know, these costs can be drastic, especially during an energy crisis. This cut will add up to around a 20% reduction in your energy bills.
Another advantage of CHP is its smaller carbon footprint, as they typically have an efficiency of 80%, this is much better than traditional energy systems, therefore creating less greenhouse gasses and is much better for the environment, in fact, CHP units can save up to 30% on carbon emissions.
Fuel supply security is always a worry and issue for businesses that rely on the grid for their electricity and heat/hot water. CHP cuts this instability by generating its own electricity, meaning you can reduce your reliance on the grid and avoid the risk of power outages.
For a full breakdown of Combined Heat and Power Finance, GOV.UK have an in-depth guide which you can use to learn more about the financial side of CHP.
CHP units/systems are a great investment for any energy-intensive businesses who want to create energy independence and reduce their costs, as well as their carbon footprint. But is it really worth the investment?
Firstly, CHP boilers are a great choice for businesses for the reasons previously mentioned, as well as lasting years with minimal maintenance costs and upkeep. However, any large investment in your business should be well thought out and you should always seek professional guidance.
Our experts can help you make a choice on whether you would benefit from a CHP boiler, and help you get started. All you have to do is get in touch and we will take it from there.
Join 10k+ customers who have streamlined their business with Direct Trading Solutions.