UK budget gives support to domestic CHP

18 March 2004 - The British Chancellor brought the prospect of homes producing their own power and heat closer in yesterday's budget (March 17 2004) by reducing the VAT rate on domestic micro combined heat and power (microCHP) appliances from 2005.

The announcement means that microCHP units will benefit from the same VAT rating as some other energy efficient products and the use of energy itself - a move designed to encourage people to invest in this new technology.

MicroCHP could revolutionize the home energy market by enabling customers to produce part of their own electricity whilst heating their homes. The industry says that MicroCHP will cut a typical household's energy bills by up to £150 a year and carbon dioxide emissions by up to 1.5 tonnes a year.

Yesterday's development is the latest step in the UK government's move towards a low carbon economy. In early 2003 the Energy White Paper identified energy efficiency as the cheapest, cleanest and safest way of meeting the government's Kyoto and manifesto targets. Since then, the UK government has demonstrated international leadership in removing technical and regulatory barriers to distributed generation, through the work done by the Distributed Generation Coordinating Group. This includes securing legislative change, with the recently adopted Cogeneration Directive paving the way for similar barriers to be removed across all of the European Union.

The move was endorsed by Roger Webb, Heating Services Director of the Society of British Gas Industries, who stated: "We are delighted that the Chancellor has listened to the views of the industry by offering this excellent incentive to UK households to invest in MicroCHP technology. In doing so, the Government has demonstrated its commitment to cutting carbon emissions, as outlined in its Energy White Paper. This cut in VAT will help the industry further develop the market for more fuel efficient heating systems, while consumers will benefit in the long term from greater availability of appliances that will cut their heating bills."

Lord Ezra, Chairman of Micropower said: "We are pleased to see the government has acknowledged the valuable role of distributed energy for the future of this country. This reduction in VAT sends a clear signal to micropower technology developers, customers and investors that the government recognizes the potential of consumer - based power generation in the energy policy mix to meet the country's Climate Change objectives."

David Green, Director of the Combined Heat & Power Association responded: "The Chancellor has once again shown his clear support for CHP, which we welcome. The Association urges both DTI and DEFRA to show a similar commitment to the industry in the forthcoming, and long awaited, CHP strategy."

Sponsored by FLSmidth
Recommend this article Recommend this article () You recommended this article You recommended this article ()
Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Buyers Guide Categories

Current Magazine Issue

Volume 117, Issue 8

Buyers Guide Company Listings

Vogt Power International Inc

Industry leading HRSG manufacturer with experience in combined cycle and cogeneration plants. Our aftermarket specializes in turnkey engineered solutions, including comprehensive inspections, NPHR evaluations, and plant assessments.

LB Services LLC

Provides professional grade energy, power and utility consulting services, including CHP and cogeneration, renewable energy options, energy auditing and upgrades, and site energy and sustainability strategies.

Kato Engineering Inc

Provivdes generators for prime, standby, and peak-shaving power. Engine- or turbine-driven 200 kW to 25 MW. Used in oil and gas, mining and manufacturing, military, transportation, cogeneration, computers, and telecommunications.

Proe Power Systems LLC

Develops, licenses, and sells revolutionary, new, low-cost, and low-emissions power plants that produce combined heat and power from waste heat recapture and more.

Power Industry Wire News

Michelle Galanter Applebaum Joins Northwest Pipe Company's Board of Directors

Michelle Galanter Applebaum Joins Northwest Pipe Company's Board of Directors

MEDIA ADVISORY: $2.46 Million Sustainability Retrofit Begins at LINC Housing's Low-Income Apartment Community in Lancaster

MEDIA ADVISORY: $2.46 Million Sustainability Retrofit Begins at LINC Housing's Low-Inco...

BRS Resources Files Armonia Drilling Application

BRS Resources Files Armonia Drilling Application

Judicial Watch Uncovers HHS Documents Detailing "High Risk" Security Problems With Obamacare Internet Site

Judicial Watch Uncovers HHS Documents Detailing "High Risk" Security Problems With Obam...

Leading EPA and NHTSA Officials to Deliver Keynotes on New Truck Efficiency Rules at High-Efficiency Truck Conference

Leading EPA and NHTSA Officials to Deliver Keynotes on New Truck Efficiency Rules at Hi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>