Benefits of micro-CHP and FiT
Current micro-CHP technology is well suited to the majority of UK homes and is a logical replacement for a wall hung boiler. Micro-CHP is suitable for a wide scale rollout across the public sector and housing associations for a number of reasons:
- Access to existing housing stock under the Decent Homes Programme
- Ability to benefit from the tariff for the full 10 year life of the Feed-in Tariff
- Access to low cost financial schemes
- Micro-CHP generates energy irrespective of the building orientation and weather conditions
The introduction of Feed-in Tariffs (FiT) and the adoption of low carbon technologies such as micro-CHP provides local authorities with an opportunity to create economic and environmental benefits.
The benefits available from low carbon technologies varies depending on the type of installation (property size and type). To provide an example of the potential cost and carbon savings available from installing a Baxi Ecogen, we have used an example of 500 1kWe microCHP systems - typical of a boiler replacement in any UK dwelling. The following calculations are based on a 3-bedroom semi-detached property with cavity and loft insulation and a heat load of 12kW, for both space and water heating.
Energy and carbon savings
Energy generated/year 1,121 MWh
Carbon saved/year 636 tonnes
Financial benefits (for example)
Income from the generation tariffs £112,100
Income from the export tariff £13,452
Total income £125,552
Money saved by householders £94,164 = £188 per household
(assuming 50% used)
Positive impact on fuel poverty
The use of micro-CHP can help to address the issue of fuel poverty (defined as spending 10% or above of a household income to heat the home) and provide relief against the inevitable fluctuations in electricity prices by generating over 50% of the annual electricity demand.
Reduced exposure to future fuel price increases
Unit costs for electricity have risen sharply since 2005. During the start of the economic recession in 2008, prices decreased compared to RPI but peaked again in 2009. The long term forecast for the price of electricity for UK domestic customers is an upward trend, therefore electricity generating technology is a ideal way to offset these price increases.