Combined Heat and Power (CHP)

These generate locally required electricity (rather than using the National Grid) and use the heat energy given off to heat the building or water. Hence their name. These CHP plants can used for domestic or industrial applications. However, domestic trials have shown a large disparity between efficiencies achieved in different settings. Some homes saw a 40% saving, whilst others experienced rising costs. It really depends on how you use energy in the home. 

CHP produces twice as much heat than electricity, so if you have a higher demand for heat and a lower one for electricity then they become more efficient, but not the other way around.

CHP can run on a variety of fuels, but domestically they run on gas or oil. Larger units can be run using biomass and this makes them carbon neutral which is advantageous. Larger institutions like hospitals and schools could benefit greatly by using CHP, but domestically they have yet to prove their worth.