Think of CHP units are as your very own on site super efficient power station generating you low cost electricity whilst providing free heat. Combined heat and power (CHP) modules are compact electricity or heat generators, typically a gas or biomass fuelled engine, where no energy is wasted.

CHP units can save well over 30% energy use with a corresponding reduction in pollution, generating 25 % less nitrogen oxide (acid rain) and around 60% less carbon dioxide (greenhouse gas).

“Installing the system was a no brainer.

ZLC Energy provided us with detailed information on the CHP system, as well as how it will help us to achieve our targets to reducing the cost of energy.”

Dean Bennett
Managing Director, China Fleet Country Club

Combined Heat & Power (CHP)

How it works

A CHP is an internal combustion engine electricity generator is supplied with gas or wood fuel. The waste heat from the engine oil, the engine coolant and the exhaust gas, is collected in the “internal cooling circuit” and made available to the heating system at a flow temperature of up to 90 °C.

CHP modules are primarily used to cover the heating and electrical base load. Variable energy demands are met by grid supply or other renewable power systems and by peak load boilers.


  • Use low cost gas or biomass fuel to generate cost effective on site electricity at typically 7-8p/kWh
  • All heat from the generator recovered without cost
  • Lower carbon and NOx emissions
  • CHP can provide Uninterruptable power supply
  • Depending on the system size and fuel, CHP can be eligible for a range of financial incentive schemes including RHI, Renewables Obligation/ FIT, Enhanced Capital Allowances.
  • Enables business exemption from Carbon Levies including the Climate Change Levy (CCL) and Carbon Taxes

Is my business suitable?

The ideal CHP scenario is where you have a continuous baseload of heat & electricity demand. Typical sites include Industry with continuous heat demand, Care Facilities, Leisure Centres (Swimming Pools) and Hotels/ holiday facilities with Swimming Pools.

How does it Pay?

Using low cost fuels of gas or biomass, the CHP generates electricity for 7-8p/kWh whilst also generating a large amount of free heat

Example Case

Energy cost: Gas 2.5p/kWh, Electricity 12p/kWh