Commercial building CHP and cost reductions

Investing in a commercial building CHP can help you to reduce your energy costs and make significant cost savings on a long term basis. Within this article, we’ll go through exactly how a commercial building CHP can reduce costs. 

 How a commercial building CHP can reduce costs

Energy efficiency: the primary way in which commercial building CHP can contribute to cost reduction is simply by being energy efficient. In fact, a CHP system is almost twice as efficient as using separate grid power and individual boilers. What’s more, CHPs can achieve exceptionally high efficiencies of up to 90% due to the fact that they recover the ‘lost’ heat emitted during cogeneration.

Low fuel costs: a CHP system will typically generate electricity from natural gas at a cheaper rate than you can procure it from the grid. This is because wholesale gas prices are generally that much lower than power prices due to something termed the ‘spark spread’ advantage, which is the differential between the price of energy and the cost of the fuel used to generate that energy.

Energy security: although this may not be directly related to cost reduction, it is related to energy resilience, energy security and reducing the risk of down time which can contribute to overall cost savings across your business – CHPs provide you with options; by producing your own power with a CHP system, you will not be affected by any costly national grid blackouts. Within this, if your CHP ever goes offline for any period of time, you have the option to switch back to the mains supply until your CHP is back online.

In short, investing in a commercial building CHP unit can reduce your overall energy costs as well as providing your business with energy security – all of this whilst also being kinder to the environment, helping to reduce CO2 emissions. 

You can find out more about our CHP installation services, here or contact us for more information.