A CHPQA (Combined Heat & Power Quality Assurance) quality mark will assist your organisation in getting the most out of your system financially, as a ‘Good Quality CHP’ qualifies your company for a range of incentives. We have outlined some of the CHP benefits and answered some frequently asked questions below.
What is the CHPQA?
To certify the quality of CHP systems in the UK, the government launched an initiative for assessing combined heat and power systems, which falls in line with the requirements of the EU Directive 2012/27/EU on Energy Efficiency. The scheme measures the efficiency and environmental performance of Combined Heat & Power systems, and a ‘Good Quality CHP’ classification opens up financial rewards.
Do you qualify for Combined Heat & Power Quality Assurance?
Combined Heat & Power Systems are often referred to as ‘schemes’. Find a list below of some basic criteria for those CHP schemes that qualify for CHPQA.
Simple Scheme Qualification
- Generating capacity < 2 MWe
- Single reciprocating engine
- Single conventional fuel used
- Heat recovery with no waste heat rejection
• Generating capacity equal to or greater than 2 MWe
• Prime mover, not a single reciprocating engine
• Non-conventional fuel used
• Certain Boiler(s) included within the scheme boundary
An Annual Process to Maintain Your CHP Quality Mark
To obtain CHPQA there is a self-assessment process, which can vary depending on the complexity of the CHP scheme. You must complete this process once a year to ensure each CHP scheme is still effective.
As long as your site and CHP meet the requirements, and the CHPQA application is submitted correctly you should meet the criteria with no issues. However, they can be a little complicated for the untrained eye, and that’s why Shenton Group offers assistance with the CHPQA process and provides guidance to ensure it is done properly.
4 Tips to Make Sure You Obtain or Retain CHPQA
- Accurate Planning. New CHP schemes must be sized properly based upon accurate energy data as failing to do so may result in missing out on obtaining CHPQA, and may also cost you money. Failure to plan properly could lead to a scheme too big to run efficiently, or not large enough to obtain suitable cost savings.
- Schedule Regular Maintenance. Regular maintenance will enable your CHP system to run efficiently, ensuring the best ROI. As the UK’s sole provider of TEDOM CHP units, Shenton Group are the experts in CHP and can support you in looking after your system.
- Recording Usage. Metering and sub-metering of the fuel used and the heat & electricity produced by your CHP will not only help you keep a tab on the efficiency of your system, but the use of accurate MID certified metering is a requirement of CHPQA. Without these measurements, obtaining a certificate is not possible.
- Be Certain That CHP Is Principal Provider. Your CHP system needs to be the main provider of your heat.
Avoid the Rising CCL Rates with CHPQA
(Climate Change Levy) CCL is an environmental tax on electricity, gas and solid fuels. The logic behind it is to push businesses and organisations to choose more energy-efficient methods to power their operations.
The CCL rate for gas fuel will be increasing in 2021, to be as much as 60% of the CLL rate for electricity. This makes CCL exemption very attractive for businesses. Unless you are a charity or a huge energy user, the likelihood is you will be liable to pay this tax, but CHP systems can reduce your environmental tax bill.
CHP schemes that obtain ‘Good Quality CHP’ status are exempt from CCL payments on the gas they use to generate their power.
Other Financial Incentives
CHP benefits extend to financial reasons too. Organisations with ‘Good Quality’ CHP can benefit from enhanced business rates. Depending on your location, Shenton Group can help you investigate this avenue at the planning stage.
Annual Investment Allowance (AIA) – You can claim AIA on most plant and machinery up to the AIA amount. The AIA amount has temporarily increased to £1 million between 1 January 2019 and 31 December 2020.
Shenton Group CHP Specialists
Shenton Group is the market leader in the supply, installation and maintenance of CHP units and the sole distributor of the TEDOM Combined Heat & Power range. Our level of expertise allows us to advise and oversee the whole CHP process for your organisation, from concept to delivery and ongoing maintenance. Speak to us about CHP benefits and get insight into whether it is a suitable solution for your organisation.
Get in contact today. We can help you obtain CHPQA certification and you can enjoy the full benefits of your CHP scheme.