Micro CHP Systems: Market Trends

The following information is as of 3/1/08

In Japan there are over 50,000 units running

In the UK, the government is substantially subsidizing micro chp systms over traditional systems by lowering VAT from 17.5% to 5% for micro-CHP. 17.5% remains the VAT for conventional systems. In addition, in the UK it is estimated that up to 17 or 18 million homes are suitable for micro-CHP units.

Micro-CHP systems are new to the US market, but the following is known:

- These system will produce about 50% of the electricity for an average US home from the same amount of fuel already being used. This subtracts the value of one-half of a home's electric bill from the cost of the oil or gas needed to heat the home. On another level, this reduces the carbon footprint of these homes.

Estimates (reference: Wikipedia) include a recent forecast that micro chp systems could be used in about 50 million homes in the United States. KeySpan, which is a major gas distribution company, is considering incentives for its customers who buy and install microchp.

It is also possible that the United States government or individual states might offer incentives for purchasing micro chp systems.

It is clear that this is an expanding market with tremendous opportunity, and investors and homeowners may be equally tempted to look into it today.