Combined heat and power scheme (CHP)

A CHP scheme generates heat and power (usually electricity) simultaneously, through a single process.

Claiming for an Enhanced Capital Allowance (ECA)
Businesses can only claim an ECA on equipment in this category if they have been granted a Certificate of Energy Efficiency by the Secretary of State.

To qualify for this, a business must first obtain a Combined Heat and Power Quality Assurance (CHPQA) Certificate. These are issued by the CHPQA Programme, not by the Carbon Trust, and must be renewed every year. To find out more about the certificate, and how to apply for one, please refer to the programme’s website at www.chpqa.com.

If the certificate is going to be used to claim an ECA, this should be indicated when applying.

The CHPQA Administrator will then also issue a Certificate of Energy Efficiency, on behalf of the Secretary of State — providing the scheme meets the criteria for good quality CHP.

Certificate of Energy Efficiency
The Certificate of Energy Efficiency is separate and distinct from the CHPQA Certificate. It’s valid from the date of issue and remains so as long as the CHPQA Certificate is kept up to date. However, it can be withdrawn if the CHP scheme doesn’t meet CHPQA design specifications, the design changes during development, or if the development itself stops.

Along with a reference number and information about the scheme, such as total power capacity, the Certificate of Energy Efficiency lists what percentage of the total investment is eligible for an ECA. Once a business has received the certificate, it can claim an ECA on the eligible part of its investment.