Combined Heat and Power (CHP) systems can be designed to help reduce energy costs. CHP, also known as cogeneration, is a method of generating electricity and useful thermal heat simultaneously from the same energy source. The major benefit of cogenerating electrical and heat energy on-site is felt on your bottom line – watching your kilowatt per unit energy cost lower to as little as 11 pence per kilowatt hour.

Generating power on your own premises via a CHP unit can achieve overall efficiencies of 70-90%, while conventional power plants might only achieve 30-50%.

By capturing and redistributing the thermal heat produced during electricity generation for space heating, water heating, or industrial processes, improves the overall energy efficiency, and therefore negates the need for gas boilers or water heaters, thus contributing to additional cost savings.

CHP systems are often located near the point of use, reducing the need for transmission and distribution infrastructure. This can result in lower energy losses during the transportation of electricity from the power plant to the end user, contributing to cost savings.

Crucially, incorporating a CHP unit will help reduce the demand on the electrical grid during peak periods. This can lead to cost savings, as energy prices are often higher during times of peak  demand. By generating power on-site, a CHP system can offset the need to purchase expensive electricity during these peak periods.

For a visual representation of the true potential per unit cost of your energy when installing a CHP, we have developed a simple-to-follow matrix to highlight what your business could be paying for its energy costs.

It’s important to note that the actual cost savings will depend on various factors, including the specific CHP technology, fuel costs, system efficiency, and the local energy market conditions. Additionally, the initial investment cost for installing a CHP system should be considered when evaluating the overall economic benefits – but at Helec we can explore zero Capex options for a new CHP project. Consulting with us as energy experts to conduct a detailed feasibility analysis for your specific requirements is recommended.

If you are considering exploring this technology, we’d be happy to talk. Either fill out the contact form here or send an email to