Domestic Combined Heat and Power(CHP) installations use a conventional fuel - normally mains gas - to generate electricity and also to supply hot water. While the efficiency of electrical generation does not approach that of a large power station, the fact that the heat is also used means that overall the domestic installation would use the fossil fuel more effectively.
The design aim of a domestic CHP unit is to replace a conventional gas boiler, and to require no special installation skills. The electricity generated reduces the demand from the mains, and may feed electricity back into the mains when local demand is lower. This requires a new electricity meter which records exported electricity separately.
Currently leading contenders for CHP systems are PowerGen, Baxi and Honda.
A major advantage of such systems could be that they can continue to power essential services such as freezers and a few lights if there is a power cut. This requires specific design, as such systems must be designed not to generate electricity if the mains fails.
PowerGen say their system may cost £600 more than a conventional boiler of the same size.
The electricity from CHP does not come from a renewable resource and so does not qualify for Renewable Obligation Certificates (ROCs). So for the export of electricity to be economically sensible it is necessary to find a supplier prepared to buy the exported electricity. The suppliers considering doing this at present include PowerGen and BG (British Gas). However they link the agreement to buy the power to the use of their selected CHP system, which may not suit the requirement.
The most appropriate comparison for a CHP system would be with the alternative of a modern condensing boiler. With a typical condensing boiler about 88% of the energy in the incoming gas is converted to the energy in the heated water. If the CHP system does not reach a similar efficiency the benefit of generating some of the output as electricity does not compensate for the poorer performance.
CHP installations can be sensible for factories, large offices or whole estates. CHP for domestic installations is less attractive, partly because the technology for domestic use is still in an early stage of development, and partly because the electrical energy generated may not be required. As explained elsewhere it is difficult to be paid for this electricity.
Domestic CHP is potentially a very significant development. If such units were available in a suitable range of sizes, at reasonable prices, with efficiencies similar to that of Condensing Boilers, and with an easy means of being paid for the spare electricity generated, they could become the normal installation for central heating.