Why homeowners should invest in micro CHP Micro combined heat and power (micro CHP) systems, also known as co-generation systems, produce electricity and heat at the same time. They make use of the heat usually lost as waste when producing electricity and are far more efficient than traditional boilers in the home. Rather than focusing on generating electricity and producing heat as a by-product that is usually lost, micro CHP systems make the most of the heat produced for hot water and central heating. The electricity generated alongside this can then be used in the home or transported to the grid. This technology makes better use of primary energy sources, whether that is fuel from goal or gas or renewable energy such as solar power, and can save households hundreds of pounds each year. Micro CHP is becoming more popular among homeowners thanks to its efficiency, eco-friendly qualities and potential for keeping fuel costs down. Any excess electricity produced while heating the home can be exported back to the national grid, for which homeowners receive a payment under the Feed-In Tariff (FIT) scheme. On top of the basic cost savings because of the higher efficiency of micro CHP systems, this can give homeowners an additional, albeit limited, income each year. Furthermore, micro CHP systems are not too expensive or difficult to install – the cost and effort required is similar to fitting a new conventional boiler system, so if it is time to change then a micro CHP system could be the best option. According to a report in 2008 by the Claverton Energy Group, Stirling engine micro CHP was revealed as the most cost-effective form of microgeneration technology for cutting carbon in the UK. Even if run on traditional carbon-based fuels, the increased efficiency of micro CHP makes it more environmentally-friendly than traditional systems, and the eco benefits are increased if using renewable energy or biomass.