Home energy upgrade
Micro-CHP
Micro combined heat and power units generate both heat and electricity from a single appliance — cutting your energy bills and earning Smart Export Guarantee payments on surplus electricity exported to the grid.
Step by step
How Micro-CHP installation works
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A heating engineer assesses your home's heat and electricity demand to confirm micro-CHP is a good match.
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A qualified installer fits the unit in place of your existing boiler, connects it to your heating system, and wires it to your consumer unit.
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A generation and export meter is installed and the system registered with your electricity network operator.
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Once live, the unit generates heat and electricity simultaneously — any surplus power is exported and earns SEG payments from your chosen licensed energy supplier.
Why it's worth it
Benefits of Micro-CHP
- Generates electricity as a by-product of heating your home, reducing grid imports
- Surplus electricity exported to the grid earns payments via the Smart Export Guarantee (SEG)
- 0% VAT on supply and installation for eligible homes
- Higher overall fuel efficiency than separate heating and power systems
- Available in gas-fired Stirling-engine and hydrogen-ready fuel-cell models
- Low visual impact — replaces your boiler in the same footprint
What to budget
Typical cost
Costs vary significantly depending on property size, existing systems, and installer. A surveyor's assessment will give you an accurate figure. Available grants (listed below) can substantially reduce the net cost.
Is this right for you?
Ideal for
- Homes with a high heating demand and significant daytime electricity use
- Properties where solar PV is impractical (north-facing or heavily shaded roof)
- Households already connected to mains gas seeking to reduce electricity costs
- Homeowners interested in hydrogen-ready or fuel-cell technology
Financial support
Grants you may qualify for
Smart Export Guarantee (SEG)
Ongoing paymentsEnergy suppliers with 150,000+ customers must offer a tariff to pay you for every unit of solar electricity you export to the grid. Available UK-wide, no upper limit on system size for domestic installs.
0% VAT on Energy-Saving Materials
0% VATSolar panels, heat pumps, insulation, and other qualifying energy-saving measures are zero-rated for VAT — saving 20% on supply and installation costs UK-wide.
Ready to go?
Find MCS-certified Micro-CHP installers near you
Compare MCS-certified specialists in your area, check their credentials, and book a free assessment worth £380.
