Three trade associations representing the micro-CHP industry have combined to urge the government to raise the Feed-in-Tariff for micro-CHP to accelerate the take up of the home boiler replacement technology, thus safeguarding jobs and providing cost effective low carbon heating and hot water for consumers.
Their spokesman said, “Manufacturers and energy suppliers have invested hundreds of millions of pounds to bring micro-CHP to world markets. Much of the development work, and a large part of the manufacturing, are being done in the UK. It is essential that the product is a success in the UK for this work to stay here.”
Micro-CHP is an emerging technology that is starting to appear commercially. Micro-CHP units can replace home central heating boilers and produce electricity as well as space heating or hot water. In the UK nearly a million and a half gas boilers are replaced each year and the manufacturers of micro-CHP units are chasing a large part of this mass market.
When the FiT was set up the industry asked for 15p a kilowatt hour and instead received a tariff of 10p. The government also set a cap on 30,000 units receiving FiT at which point it would review the situation.
“The industry wants the 30,000 unit cap removed because it creates uncertainty for investors” the industry spokesman continued, “ and a raising of the small tariff for micro-CHP to at least 15p a kilowatt hour (kWh) would also signal the government’s desire to nurture this fledgling high-tech industry and keep jobs in Britain”.
The product cuts the carbon emissions of a household significantly. The industry also states that it will make a tangible difference to energy security and economic benefits for the UK by enhancing the grid’s ability to meet peak electricity demand while generating significant cost reductions throughout the electricity system and for household heating bills.
The three trade associations representing the micro-CHP industry are the Combined Heat and Power Association (CHPA), the Heating and Hotwater Industry Council (HHIC) and the Micropower Council (MPC).