Micro-CHP set for feed-in tariff boost

Greg Barker has pledged to increase the feed-in tariff payments to micro-combined heat and power (CHP) systems and examine other regulatory options to increase uptake of the technology in UK properties.

The climate change minister made the comments in a Westminster Hall debate yesterday, recognising that to date the roll out of micro-CHP, which saves money and emissions by capturing heat produced when generating electricity and using it to warm buildings, has been "beyond disappointing".

"The number of boilers is almost non-existent – a fraction," he said. "We set the 30,000 limit, worried that there would be a surge of deployment, but there has been one per cent of that."

He played down the chances of a rise from 10p per kilowatt hour to 15p, as called for by trade bodies the Micropower Council (MPC), the Combined Heat and Power Association (CHPA), and the Heating and Hot Water Industry Council (HHIC) in November.

But Barker said the potential impact of CHP warranted raising the subsidies even while payments for other technologies "are facing substantial tariff reductions" given that the government claims the budget for feed-in tariffs is all but spent.

"I will be publishing our proposed levels very shortly – within a matter of days. I will be introducing a new tariff proposal for CHP," he said. "Unlike almost all the other technologies, I will be looking to raise the tariff in those proposals. I do not think I will be able to satisfy the... demand for 15p, but I am considering raising the tariff."

Barker added that he would be looking at other regulatory measures to improve take-up, adding that industry forecasts of installing one million CHP boilers by 2020 is "something [the government] should think about".

Introducing the debate yesterday, Labour MP Dr Alan Whitehead noted that this level of CHP installation would generate about 20GWh of electricity on a typical winter's day, as well as saving property owners money on electricity bills.

Moreover, if those one million boilers replace older condensing boilers, rather than non-condensing models, after a 10-year life they would save more than two million tonnes of CO2, about half the total estimated savings the Committee on Climate Change has pencilled in by 2020 from greater efficiency in household appliances.

Graham Meeks, director of the CHPA, said the advantages of the technology were clear.

"As a low-carbon alternative to the ordinary boiler, micro-CHP can bring the benefits of the government's feed-in tariff to many millions more UK households, slashing electricity bills and cutting carbon emissions," he said.

"Greg Barker's commitment to increase the tariff level for micro-CHP is a welcome and important step forward in realising the enormous possibilities of this exciting technology."