1. Home
  2. > Knowledge Centre
Blogs

How CHP can cut your business energy bills and take control of costs

Understand how Combined Heat and Power can reduce your energy spend and bring long term cost certainty.

For many organisations, energy costs have become harder to manage as prices rise and reliance on the grid increases. What was once predictable is now volatile.

Combined Heat and Power offers a smarter approach. By generating electricity and heat on site, it reduces exposure to external price increases while improving resilience and giving you greater control over long term costs.

What are the financial benefits of Combined Heat and Power? 

  • Reduce energy costs: Achieve up to 40% lower energy costs compared with conventional electricity and heat supply by producing power onsite and recovering usable heat that would otherwise be wasted.
  • Protect your bottom line: Energy prices are unpredictable, and grid costs continue to fluctuate. CHP gives you greater control over how your energy is generated, delivering more stable, predictable energy costs.
  • Strong ROI: With returns typically achieved within 1 to 3 years, organisations benefit quickly from lower electricity costs and improved fuel efficiency, with savings continuing long term.
  • Energy efficiency: Traditional energy systems waste large amounts of heat. CHP captures and reuses that heat across your site, achieving overall efficiency levels above 80%. The result is lower operating costs and better value from every unit of fuel you buy over the lifetime of the system.
  • No upfront costs: With finance options such as Discount Energy Purchase (DEP), you can install CHP with zero upfront cost, paying an agreed p/kWh unit rate for the electricity generated onsite, with ongoing maintenance included.

Flexible ways to fund Combined Heat and Power

Choosing the right funding model is a critical part of making CHP work for your organisation. The options available provide different levels of flexibility, commitment and control, depending on your financial priorities and operational needs. Selecting the right approach can help you reduce energy costs, manage risk and build a more resilient, future ready energy strategy.

 

Discount Energy Purchase (DEP)

Our DEP option finances on-site generation assets, we’ll install and operate with no upfront costs, over a 7–15-year contract. You’ll pay an agreed p/kWh unit rate for the electricity generated – and, with ongoing operations and maintenance included, you’ll be assured your solution is always working at its best.

CHP Rental-as-a-Service

Our CHP Rental-as-a-Service financing option allows you to rent a CHP unit for a shorter time period – typically 5 years. Unlike many other financing options, there are no minimum generation obligations, so you won’t be charged for under-usage. You can use the CHP as much or as little as your organisation needs, as your energy strategy evolves.

Flexible Term Agreement (FTA)

Our FTA option enhances the flexibility of DEP, with the ability to replace or return your CHP unit after 3-5 years – helping you adapt to changing circumstances.

Your Combined Heat and Power (CHP) Playbook

Get practical recommendations with your step‑by‑step guide to Combined Heat and Power for smarter onsite energy.

Combined Heat and Power (CHP) Playbook - Transparent

Subscribe to Centrica Business Solutions

Sign up to receive regular updates on:

  • Net zero, sustainability, low carbon and renewable energy
  • Insights into our energy solutions and the wider energy market
  • Our latest news, webinars, podcasts and events

By submitting your details you agree to process your personal data by Centrica Business Solutions as described on the Privacy Policy. Centrica Business Solutions will send you a regular newsletter and other marketing material we believe is relevant.  You will be able to opt out of communications from us at any time.