Combined Heat and Power

Choosing the Right Energy Solution: Understanding CHP and Genset Systems for Your Business

If you own or work in a business which uses a large amount of power, on-site energy will go a long way to helping you achieve your net zero targets. There are two main systems that we can help you set up, depending on your business’s needs: CHP and Genset. This is a rough guide on how these systems work, the positives and negatives of each, and which may be the best choice for your business.


Combined Heat and Power (CHP)

A Combined Heat and Power (CHP) system is a high-efficiency energy generator. It uses a single source of fuel (commonly biogas, natural gas or liquefied petroleum gas) to create heat and electricity at the same time, saving you energy and money. If you’d like to go net zero, this will pull a huge amount of weight. Here are some of its benefits:

Lower costs and stress:

A CHP system can save you up to 40% of your costs, and stops you from having to secure large procurement contracts with energy suppliers as your source is now on-site. The initial up-front cost can also be waived in favour of a payment plan, making it less of an intimidating investment.

Less emissions:

Since it combines your energy, it reduces the amount of CO2 and SO2 emissions you’d usually create from things like plant room boilers and coal. This goes a long way towards helping you hit your net zero targets, and can even qualify you for some extra incentives!

Extra incentives:

Businesses with CHP systems are eligible for extra financial benefits, such as Renewable Heat Incentives, and Enhanced Capital Allowances (claiming back tax on the purchase of a CHP system). These schemes are designed to get as many businesses moving on to renewable energy as possible, and can be really worthwhile if you already plan on going green.

Less reliance on the grid:

CHP systems aren’t reliant on the national grid, which can come in useful if there’s ever a power cut. This provides a great contingency and keeps your business going at all times.



If your electricity and heat usage are different, or if you don’t have the use for one of them, you can always get a generator. They’re commonly used in areas that don’t have access to the national grid, or as a backup in industries where power cuts are catastrophic, but are increasingly being used to make businesses completely self-sufficient on their electricity. These have many of the same advantages as a CHP system, but are advised to businesses who would get more use out of it than CHP.

If you’re interested in making this switch, you can speak to an advisor here, where they can guide you on what your business can do to become more self-sustainable.