Micro combined heat and power or 'Micro cogeneration" is a so-called distributed energy
resource (DER). The installation is usually less than 5 kWe in a house or small business. Instead of
burning fuel to merely heat space or water, some of the energy is converted to electricity in addition
to heat. This electricity can be used within the home or business or, if permitted by the grid
management, sold back into the electric power grid.
Delta-ee consultants stated in 2013 that with 64% of global sales the fuel cell micro-combined heat
and power passed the conventional systems in sales in 2012.[16] 20,000 units were sold in Japan in
2012 overall within the Ene Farm project. With a Lifetime of around 60,000 hours. For PEM fuel
cell units, which shut down at night, this equates to an estimated lifetime of between ten and fifteen
years.[17] For a price of $22,600 before installation.[18] For 2013 a state subsidy for 50,000 units is in
place.[17]
MicroCHP installations use five different technologies: microturbines, internal
combustion engines, stirling engines, closed-cycle steam engines, and fuel cells. One author
indicated in 2008 that MicroCHP based on Stirling engines is the most cost-effective of the so-called
microgeneration technologies in abating carbon emissions.[19] A 2013 UK report from Ecuity
Consulting stated that MCHP is the most cost-effective method of using gas to generate energy at the
domestic level.[20][21] However, advances in reciprocation engine technology are adding efficiency to
CHP plants, particularly in the biogas field.[22] As both MiniCHP and CHP have been shown to reduce
emissions [23] they could play a large role in the field of CO2 reduction from buildings, where more
than 14% of emissions can be saved using CHP in buildings.[24] The University of Cambridge reported
a cost-effective steam engine MicroCHP prototype in 2017 which has the pot