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MicroCHP will contribute to electricity generation but only if the FiT tariff is righ

29 October 2014

Lower energy bills for consumers and lower carbon emissions are the Holy Grail for the Government in home heating.  As they push ahead with plans to achieve an 80% reduction in CO2 by 2050 against the backdrop of possible power shortages if the UK weather is particularly unkind this winter, the Heating and Hotwater Industry Council, HHIC is asking for an appropriate tariff for microCHP to be introduced in the FiTs review.

MicroCHP provides a dual energy low carbon solution for generating heat and power for the domestic market. It typically uses natural gas or in off grid areas, LPG as the input fuel and is an efficient replacement for, or complement to a gas boiler.

Roger Webb, Director of HHIC said "It is imperative that the Government establishes the correct tariff for microCHP for the FiT review as it presents an ideal opportunity to encourage homeowners to embrace this technology.

As we continue to read about possible power shortages within the UK this type of technology could help make up the shortfall. By operating at times of peak demand on the national grid, microCHP will help reduce pressure and support the grid through electricity export and as the electricity is produced at the point of use it means that there isn't any loss during transportation making the system extremely efficient.

To achieve economies of scale at a manufacturing level and thus reduce costs to consumers hundreds of thousands of pounds needs to be invested, yet manufacturers are understandably reluctant to make this level of investment until market demand increases. This is where the Government and industry need to start to work together more closely. An effective and affordable Feed-In Tariff, FiT needs to be formulated that will provide the necessary support to create a viable market in the early deployment stage.

Cheaper energy and a potential saving of up to 2.5 tonnes of carbon dioxide per household per annum - microCHP may just be the Holy Grail of home heating."