ENER-G launches new service to give CHP users full financial incentives


Cogeneration specialist ENER-G has launched a new service to ensure that UK CHP users don’t miss out on thousands of pounds worth of financial incentives.  

 The new service manages compliance and certification for  the Combined Heat and Power Quality Assurance programme (CHPQA), which is required as qualification for a raft of government incentives, particularly exemption from Climate Change Levy (CCL). 

The new  certification service launches as  latest data shows that almost one in six UK CHP customers are failing to register for CHPQA and hence losing substantial financial benefits.

“On a small 200kW CHP system, failure to gain CHPQA certification would mean missing out on more than £10,000 per year in CCL relief, while a 2MW system would qualify for payments of approximately £100,000 per annum,” explained Heather Foster, Corporate Account Manager for ENER-G Combined Power.

She added: “CCL relief is available to CHP operators for energy consumed on-site. CHPQA registration is also the route to other tax benefits such as qualification for Enhanced Capital Allowances; preferential treatment in the EU Emissions Trading Scheme; exemption from business rates and exemption from the Carbon Price Support Levy.”  

 In addition, those energy efficient users that are maximising the heat output from their CHP for on-site consumption, but require additional top-up heat from boilers, also have the facility to ‘extend the envelope’ and claim additional CCL relief on the additional gas consumed in that process. ENER-G can also advise on that separate claims process.

CHPQA provides a methodology for assessing energy efficiency and environmental performance of CHP systems and determines whether a site is classed as ‘good quality’ CHP.

As part of the new service, ENER-G takes care of all aspects of a CHP scheme’s initial registration and annual certification process – managing performance and monitoring requirements and completing the paperwork through the CHPQA and Department of Energy and Climate Change (DECC) to enable customers to gain CCL relief and other financial benefits. In addition, by analysing usage and efficiency of the system, opportunities for optimising technical performance may be identified to ensure maximum efficiency.

Heather Foster added: “To achieve ‘good quality’ certification, schemes must achieve or exceed a Quality Index (QI) rating of 100, and power efficiency performance of greater than 20%, which are also designed to meet the requirements of the European CHP Directive.  Our analysis determines these ratings by examining data for fuel used, power generated and heat supplied. Failure to achieve the threshold results in a scaling back of the fuel and/or electricity that will qualify for tax benefits.”


For a quote on potential CCL savings or further information, contact rebecca.holliday@energ.co.uk  0161 745 7450 www.energ.co.uk/chp    


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A writer working in the field of business energy management, renewable energy and clean technology. Communications specialist working for global energy management services group ENER-G.

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