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CHP Unit Finance

Finance combined heat and power (CHP) units from £30,000 to £500,000, for sites with a constant, simultaneous need for heat and electricity. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a chp unit?

Yes, chp units are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £30,000 to £500,000, and most deals are written over 12–84 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£30k – £500k

Approval Speed

24–48 hours

Best for continuous heat + power demand

Rates From

5.2% APR

What would a chp unit cost per month?

£120,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical chp unit price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.6% APR
Term
12–84 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the unit and its generation

Finance Lease

Rate
From 5.2% APR
Term
12–84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 6.1% APR
Term
24–60 months
Deposit
None required
Ownership
Return at end
Best for
Off balance sheet, servicing usually bundled in

Representative example

On a purchase price of £120,000: a 10% deposit of £12,000, then 48 monthly payments of £2,531 at 5.9% APR representative (fixed). Total amount payable £133,488, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
EnerTwin Micro Turbine CHP From £15,000 Micro CHP (Microturbine)
TEDOM Micro T (35–55kW) £45,000 – £70,000 Gas CHP Unit
2G avus 100 (100kWe) £150,000 – £220,000 Commercial CHP Unit
2G agenitor (250kWe class) £300,000 – £450,000 Industrial CHP Unit

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Tax benefits

CHP units generally qualify as plant and machinery for capital allowances, so a business can typically set some or all of the cost against taxable profits through the Annual Investment Allowance or other first-year reliefs, subject to your total qualifying spend for the year. Any specific energy or carbon-related reliefs for CHP change from time to time, so check current status directly with HMRC or gov.uk guidance rather than assuming a figure carries over from a previous year.

Market context

CHP only makes sense for a site with a genuinely constant, simultaneous need for both heat and electricity through most of the year, which narrows the realistic buyer to hospitals, leisure centres, hotels, breweries, food processors and similar continuous-load sites; a building that only needs heat in winter or power during the day is usually a poor fit, because CHP's efficiency advantage comes from using the 'waste' heat from generating electricity, and that only pays off if there's somewhere for the heat to go most of the time. Because CHP units run almost continuously rather than intermittently, ongoing maintenance and gas engine servicing tends to be a bigger part of total cost of ownership than for most equipment on this site, and is worth pricing alongside the finance from the outset.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

What kind of site actually suits CHP?
Sites with a near-constant, year-round demand for both heat and electricity at the same time, such as hospitals, care homes, leisure centres with pools, hotels, and process industries like breweries or food production. If your heat demand is mostly seasonal, or your electricity demand doesn't overlap with when you need heat, a CHP unit is unlikely to run efficiently enough to justify the investment, and a heat pump or standard boiler may be a better fit.
How does CHP generate income or savings?
A CHP unit generates electricity on site, which either offsets what you'd otherwise buy from the grid or, in some cases, can be exported, while capturing the heat produced as a by-product for use in heating or hot water. The value of this depends entirely on your specific gas and electricity prices, how much heat you can actually use, and your running hours, so it's a mechanism worth modelling with your CHP supplier rather than a fixed saving to assume.
What ongoing costs should I expect beyond the finance repayment?
CHP units are essentially gas engines running continuously, so they need regular servicing, oil changes and periodic major overhauls, similar to a generator that never stops. Many suppliers offer a service contract alongside the unit, and it's worth including this cost in your overall budgeting rather than treating the finance repayment as the only ongoing cost, since maintenance is a larger share of total cost of ownership for CHP than for most other equipment.
What deposit is needed for CHP finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance leases and operating leases typically require no deposit. Given the technical complexity and higher ticket value of most CHP installations, lenders will usually want a detailed engineering specification and heat and power demand analysis before confirming terms, rather than a simple supplier quote alone. The exact figure a lender offers often reflects your trading history and credit profile as much as the equipment itself, so a strong set of accounts can sometimes bring it down further, and it's worth comparing terms from more than one lender rather than accepting the first quote.
How quickly can I get CHP finance approved?
Straightforward smaller installations can be approved within a few days once accounts and a supplier quote are provided. Larger commercial or industrial CHP projects typically take longer, often 1 to 3 weeks, because underwriters usually want the demand analysis and technical specification confirmed first, given how closely CHP's viability depends on the specific site's heat and power profile. Having your accounts, bank statements and a signed supplier quote ready before you apply generally shortens the process, as underwriters otherwise have to pause and request the same documents before they can issue a decision.

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