Financing a micro-CHP rollout

Feed-in Tariffs were designed to incentivise the introduction of micro-CHP within all sectors of the UK market. As a registered provider the range of options open to you will depend on the amount of money you need to invest, the level of debt, the level of risk you wish to take and the degree of control you wish to have - all of which have an impact on the amount of money you can make.

There are three main options if you are interested in making the most of the commercial opportunities and carbon savings offered by micro-CHP:

Fund financing with additional capital from a bank

The money borrowed is used to set up a fund that can leverage additional commercial finance. This will require a higher rate of return, but gives you a larger pool of capital to work with.

Financing and ownership by another organisation

A third party installs the units at no cost to you or the tenant, taking on most of the risk and receiving almost all the reward, apart from some reduction of electricity bills for tenants.

Each of these financial models has its own advantages and disadvantages; to decide which is best for you, the size of the extra return on investment and carbon savings required for each option needs to be considered.  

Related Pages

• About the Baxi Ecogen
• Overview of FiT
• Benefits of mCHP and Fit 
• Risks
• Procurement