June 2019

system, the maintenance costs alone will likely be larger than the initial outlay, so the quality of the product plays a vital role in its financial performance. Fuel costs will be an even larger component of the lifetime costs of a system, making up as much as 75% of the overall spend. Investing in a more efficient product can generate big savings in the long run. the Association for Decentralised Energy estimated that a properly sized CHP system could reduce an industrial user’s primary fuel use by up to 30%. 2 Funding your system There are many benefits to installing a CHP system, but there are also a few barriers that need to be overcome before companies can start enjoying its benefits. The biggest of these is undoubtedly up-front expenditure, even though this will pale in comparison to the savings a system generates over its lifetime. Even a mid-sized manufacturing plant will be considering an investment of several hundred thousand pounds, possibly edging into seven figures for bigger sites and more advanced technology. As well as this, in many cases it can make more sense to lease a CHP system, rather than purchase it outright. This may be in the form of a hire purchase, a finance lease or an operating lease. Under a hire purchase agreement, the purchasing company pays a series of payments over several years. The CHP system would initially remain the property of the supplier, but the customer becomes the legal owner once all 38 | Plant & Works Engineering www.pwemag.co.uk June 2019 Energy, the Environment & Water Focus on: Boilers, Burners & Controls the agreed-upon payments have been made.3 This all-but eliminates one of the biggest barriers to investment, and allows the customer to ensure that its buys the system that is most appropriate, rather than basing the purchasing decision on what fits best on the current balance sheet. Invest in your investment Once a company decides to make an investment, it still pays to ensure that the operator maintains their commitment to quality. After all, when budgets are tight, it can be tempting to try and make savings wherever possible. This can potentially lead to companies trying to cut corners by getting a cheaper deal on support equipment or by opting out of an operation and maintenance (O&M) contract. This, however, is not recommended. Assuming a standard 20-year lifespan for a