Policies and Incentives

Energy users with CHP must navigate a complicated array of policies and incentives which directly impact the value of their investment. The ADE has produced a series of notes to provide an overview of some of the major policies and incentives effecting gas, renewable and micro CHP.

CHP Quality Assurance Scheme

Combined Heat and Power Quality Assurance (CHPQA) is a voluntary scheme used to define, assess and monitor CHP schemes and their energy efficiency and environmental performance. Certification under the scheme is used as principal evidence for determining eligibility for various benefits available to good quality CHP. These benefits are designed to encourage the installation and operation of CHP and currently include:

• Climate Change Levy Exemption
• Enhanced Capital Allowances
• Exemption from Business Rating of CHP Plant and Machinery

The scheme provides a “practical, determinate, and reliable methodology for assessing the quality of all types and sizes CHP Schemes, and their qualification as Good Quality CHP for all or part of their inputs, outputs and capacity”

It also aims to improve the quality of existing and new CHP Schemes, in order to enhance the 'environmental and other benefits' of CHP.

For further information please visit chpqa.decc.gov.uk