Bosch Commercial has welcomed Chancellor George Osborne's decision to exempt Combined Heat and Power (CHP) from the 'carbon floor price' as part of the 2014 Budget review.
Business development director at Bosch Commercial and Industrial Heating, Geoff Hobbs, claims that the announcement could lead to a surge in demand for the technology.
He said: 'The Government's announcement that CHP will be exempt from carbon tax from 1 April 2015 means it has never been more prevalent for industrial users to take a look at how CHP can help to reduce carbon emissions. This, combined with a growing list of other financial incentives, has positioned CHP as one of the most cost-effective solutions available to reduce the UK's carbon usage.
'The fact that CHP essentially allows stakeholders to use heat created as a by-product of electricity generation means less gas is required than a comparable utility and boiler solution. Naturally, this is viewed favourably by the Government's low carbon initiatives.'
Mr Hobbs continued: 'In addition to this 'carbon floor price' exemption, there are also a host of financial incentives which can be gained from the investment in CHP technology. Not only is good quality CHP exempt from the Climate Change Levy (CCL) but it is also covered by the Enhanced Capital Allowances (ECA) scheme, helping to significantly reduce payback periods.'
