Simple guide to the CHP Quality Assurance (CHPQA) programme

An overview of CHPQA , covering the application and certification procedures and the benefits of being certified as Good Quality (GQ) CHP . This guide also provides a list of relevant contacts, such as the Office of the Gas and Electricity Markets (Ofgem) and HM Revenue & Customs (HMRC). The guide is aimed at existing and new applicants to the programme. SIMPLE GUIDE TO THE CHP QUALITY ASSURANCE (CHPQA) PROGRAMME Abstract This is a simple guide on how to apply for CHPQA certification v6 March 2026 CHPQA Administrator chpqainfo@chpqa.com 1. Introduction Combined Heat & Power (CHP) covers a wide range of sizes and technologies. Certifying the inputs and outputs from your CHP as ‘Good Quality’ through CHPQA is the route through which eligibility for a range of financial benefits is determined. The supporting documentation found on the website is extensive and can appear daunting to the newcomer. This simple guide has been produced to give an overview of CHPQA, covering the application and certification procedures and the benefits of being certified as Good Quality (GQ) CHP. This Guide also provides a list of relevant contacts, such as the Office of the Gas and Electricity Markets (Ofgem) and HM Revenue & Customs (HMRC). This guide is aimed at both existing and new applicants to the programme. Important links to CHPQA standards, guidance notes and the Portal through which to make submissions: CHPQA Website https://www.gov.uk/guidance/combined-heat-power-quality-assurance-programme CHPQA Standards https://www.gov.uk/government/publications/chpqa-standard CHPQA Guidance Notes https://www.gov.uk/guidance/chpqa-guidance-notes CHPQA Submission Portal https://manage-combined-heat-and-power.service.gov.uk/ 2. How do I apply for CHPQA Certification? The procedure is summarised in the flow chart below, which is followed by some explanatory text explaining the purpose of the various forms to be submitted. The first step for all schemes wishing to apply for CHPQA certification is to register for the programme by creating a user account on the portal, providing your contact details as a Responsible Person (RP). The user account will enable you, as a representative of an organisation, to submit a registration for a CHP Scheme, including its Scheme address. On completion of a Scheme registration, the Scheme will be issued a unique identifier which should always be referenced in completion of self-assessment and in communications with the CHPQA Administrator. Page 1 © Crown Copyright 2026 Registration Simple Scheme Existing Scheme Details Operating Data New Projected Details & Performance Complex Scheme New Projected Details & Performance Existing Scheme Details Operating Data CHPQA Certification Applicant CHPQA Validation & Certification 2.1. ‘Simple’ Scheme Submission A scheme is defined as ‘simple’ if it meets the following criteria: Simple Scheme Criteria • Generating capacity ≤2 MWe • Single reciprocating engine • Single conventional fuel used • No heat only boiler present If this is the situation, then the Simple Submission journey can be followed which simplifies the submission procedure. There are two categories of simple schemes – Operational and Design – which are covered below. Page 2 © Crown Copyright 2026 2.1.1. SIMPLE SCHEMES - OPERATIONAL If your scheme is already commissioned and running and you have sufficient operational data for at least one month of the previous calendar year, then you need to complete the Simple Submission journey for an Operational Scheme. This journey comprises two main sections of information: • Scheme details – this is used to provide details of the CHP scheme, such as installed equipment capacity, type, etc, and metering arrangements. • Performance details – If your scheme has at least one month of operational data, this section is used to provide details of the scheme’s actual performance for the previous calendar year. You only need to submit the annual energy figures for: o Electricity generated o Fuel consumed* o Heat utilised * Where the scheme is ≤500 kWe and the Prime Mover is on the ‘Unit List’, but there is no appropriate gas metering, the fuel input may be estimated based on power efficiency declared for that Prime Mover on the CHPQA ‘Unit List’. The ‘Unit List’ can be found on the CHPQA webpage. This process is repeated every year, so long as the CHP Scheme operated during the preceding year. 2.1.2. SIMPLE SCHEMES - DESIGN For the self-assessment of schemes which are not yet operational use the Simple submission journey for a Scheme in Design. This journey enables you to provide technical details and anticipated performance of the Scheme, based on design information prior to commissioning. Any CHPQA certificate provided will be valid until the 31 December of the year of issue. For further information see CHPQA Guidance Note 10. 2.2. ‘Complex’ Scheme Submission The Complex submission journey is similar to the Simple scheme submission journey, however more detail is required and, therefore, the process is longer. The descriptor ‘complex’ covers all other schemes that are not ‘simple’: 2.2.1. COMPLEX SCHEMES - OPERATIONAL If your scheme is commissioned and running and you have sufficient operational data, then use the Complex Submission journey for an Operational Scheme. This journey comprises two main sections of information provision: • Scheme details – This is used to provide a description of the scheme. It requires details for all installed equipment (prime movers, boilers, their capacity, type, age etc.) and metering equipment that will be used to monitor the performance of the CHP scheme. You will also need to provide scheme schematics showing all the listed equipment and meters. • Performance details – If your scheme has at least one month of operational data, Page 3 © Crown Copyright 2026 this section is used to provide details of actual performance. You need to submit the following figures for each month: o Electricity generated o Fuel consumed o Heat utilised You will also need to submit more supporting documentation than for simple schemes. This may include additional calculations necessary for determining the overall efficiency (the “Quality Index”) of the scheme. 2.2.2. COMPLEX SCHEMES - DESIGN If your scheme is still at the design stages, under construction or you don’t yet have sufficient operational data, use the Complex submission journey for a Scheme in Design. The procedures are otherwise the same as for design simple schemes, outlined above. 2.3. Summary Registration and submission journeys can be found at https://manage-combined-heat-and­ power.service.gov.uk Guidance notes (GNs) are available to help you complete these submissions. If you need further assistance with completing the submission described in this section, you can either contact our helpline on 0123 575 3004 or send an e-mail to chpqainfo@chpqa.com. 3. The CHPQA Certificate The basic CHPQA certification cycle and process is illustrated and described below. An example of a CHPQA Certificate is shown in Appendix 1. Having a valid CHPQA certificate allows you to obtain or maintain your Secretary of State CHP Certificate (SOS certificate). A request should be made by completing the appropriate section at the end of the annual CHPQA self-assessment form. The SOS certificate is then issued by the Department for Energy Security & Net Zero (DESNZ) and gives legal entitlement to claim CCL exemption on Good Quality CHP fuel and electricity from its date of issue Page 4 © Crown Copyright 2026 - CHP Scheme Self assessment submitted to CHPQA CHPQA Administrator Verify, validate and approve Certification CHPQA Certificate DESNZ issue SOS Certificate Applicants contact relevant authorities to claim benefits 3.1. CHPQA Timescales CHPQA is an annual certification process. Shortly after the end of each calendar year, it is necessary for the Responsible Person (RP) to: • compile the CHP scheme energy data that was collected over the previous year • assess the scheme’s performance • submit the resultant data for validation to CHPQA RPs wishing to renew their CHPQA Certificate are encouraged to complete their submission by the end of March, allowing the CHPQA Administrator time to validate the submission and issue a new certificate in good time for the SOS Certificate to be maintained by DESNZ before the end of June deadline. Whilst the Administrator will accept submissions beyond March, there is a risk that this delay will result in the SOS Certificate maintenance deadline being missed. This would mean entitlement to CCL exemption being removed from the beginning of the calendar year up until the time a new SOS Certificate is issued. Certification Timetable • CHPQA Certificates cover a calendar year and expire at the end of December • SOS (CHP Exemption) certificates are open ended, provided that a valid CHPQA certificate is obtained by no later than end of June every year. Schemes failing QI criteria If the threshold QI criterion is not met, then the Qualifying Power Output is scaled back i.e. the Qualifying Power Output (QPO) is less than the Total Power Output (TPO). If the Power threshold criterion is not met, then the Qualifying Fuel Input is scaled back i.e. Page 5 © Crown Copyright 2026 the Qualifying Fuel Input (QFI) is less than the Total Fuel Input (TFI). 3.2. Contact details In the first instance, all queries on CHPQA should be directed to the CHPQA helpline, or emailed to the Administration team using the details below: CHPQA Helpline: • Tel: 0123 575 3004 • E-mail: chpqainfo@chpqa.com • Website: https://www.gov.uk/guidance/combined-heat-power-quality-assurance­ programme Other Contacts: DESNZ (for Secretary of State Certificates) • Industrial Decarbonisation and Emissions Trading Team E-mail: CHPPolicy@energysecurity.gov.uk • Website: www.gov.uk HM Revenue & Customs • Tel: 0300 200 3700 • Website: https://www.gov.uk/topic/business-tax/climate-change-levy Ofgem – Renewable Heat Incentive (RHI) and Renewable Generation (ROCs) • Contact: Fuelling and Sustainability Team, Renewable Electricity • E-mail: fuellingandsustainability@ofgem.gov.uk • For Non-Domestic RHI o Email: rhi.enquiry@ofgem.gov.uk o Tel: 0300 003 2289 (Monday to Thursday 9am to 5pm and to 4.30pm on Fridays) • Website: http://www.ofgem.gov.uk 4. Gas CHP - Exemption from the Main Rates of Climate Change Levy 4.1. How to Claim CCL Exemption on Fuel The administration of the Climate Change Levy is the responsibility of HMRC and to obtain the benefits afforded under the CCL legislation, some further forms need to be completed: PP10 and PP11. Guidance on completing Forms PP10 and PP11 can be found in the HMRC notice CCL 1/3 Page 6 © Crown Copyright 2026 Reliefs and special treatments for taxable supplies downloadable from their website. Alternatively, contact HMRC https://www.gov.uk/government/organisations/hm-revenue-customs/contact/climate­ change-levy A Supplier Certificate (Form PP11) must be completed and sent to your fuel supplier(s). All the exemptions and reductions relating to an individual supplier account, not just the CHP Scheme, must be claimed on one PP11. A copy of both PP10 and PP11 must also be sent to HMRC. 4.2. How to Claim CCL Exemption on Electricity 4.2.1. Non-Exporting Schemes Relief from CCL is based on the Qualifying Power Output of the scheme. If this is less than the Total Power Output (i.e. the scheme does not fully qualify as Good Quality) there is a requirement to register with HMRC in order to pay the CCL on the difference. Guidance for non-exporting schemes can be found in HMRC Notice CCL 1/2 Combined heat and power schemes. 5. Gas CHP - How To Claim Exemption From The Carbon Price Support (CPS) Rates of CCL From the 1 April 2015, the Government introduced an exemption from the Carbon Price Floor (CPF) for fuels that are used in CHP to generate Good Quality electricity for self- supply or use ‘on site’. The CPF is made up of the UK ETS carbon price and a UK only tax known as the Carbon Price Support (CPS). 5.1. How to claim CPS rate CCL exemption on fuel The operator of CHPQA certified schemes with an individual generating capacity of 2 MWe and above are liable to account for the CPS rates of CCL on the proportion of supplies of fuel used to generate electricity. Fuel used to supply ‘useful heat’ from GQCHP Schemes (the Qualifying Heat Output) is not subject to CPS rates. On receipt of a new CHPQA certificate and in possession of a new, maintained or varied Secretary of State (CHP) exemption certificate, the correctness of the deemed supplies over that period and the amount of CPS rates of CCL paid must be accounted for on your next CCL return form (CCL 100). See CHPQA Guidance Note 41 for an overview on the use of CHPQA to obtain exemption on CPS rates of CCL. See Excise Notice CCL1/6: a guide to carbon price floor for more details. Page 7 © Crown Copyright 2026 6. RENEWABLE CHP - Renewables Obligation The level of support available to GQCHP under the Renewable Obligation Order (2009) is: • 2.0 ROCs/MWh for schemes fueled wholly by biomass • ROCs/MWh for schemes fueled by waste. 6.1. How to claim renewable obligation certificates (ROC) All CHP schemes wishing to claim CHP ROCs have to obtain an additional certificate known as “CHP ROC Eligible Certificate” based on a separate assessment to that used to access other benefits available to GQCHP but using the same performance data. Like a ‘Regular’ CHPQA certificate, the ROCs certificate will be valid until the end of the year of issue and require renewal by annual submission to CHPQA. However, if you use the online system, then requesting this certificate only requires answering a Yes/No question. See CHPQA GN 44 for details of how to go about this. 6.2. Who actually issues CHP ROCs? Ofgem issues CHP ROCs through the Ofgem Renewables and CHP Register and to participate, you must register for an account. See http://www.ofgem.gov.uk for further details. 6.3. Scheme closure The Renewables Obligation is now closed to new entrants. 7. RENEWABLE CHP – Contracts for Difference (CfD) The Contracts for Difference (CfD) regulations came into force in Great Britain on 1 August 2014; CfDs replaced the RO for new projects targeting commissioning from 1 April 2017 (RO grace periods allowed certain slippage to commissioning beyond 31 March 2017). The CfD regulations do not apply in Northern Ireland. 7.1. How to claim for contracts for difference To be eligible for CHP specific CfDs, the operator will need to provide a CHPQA GN44 certificate, confirming that the scheme either partially or fully qualifies as Good Quality under the CHPQA criteria. Page 8 © Crown Copyright 2026 Support under the CfD will be paid only on the proportion of metered electrical output assessed by CHPQA to be Qualifying Power Output. This is applied in the CfD contract by applying a CHP Qualifying Multiplier (in normal circumstances the Qualifying Power Output / Total Power Output ratio) to the total electrical output of the plant. For CfD purposes, the validity of the CHPQA GN44 certificate will continue on, and not cease on its expiry date, until such time as a new GN44 certificate is obtained - but the continued validity of a GN44 certificate after its expiry date will apply only in respect of electricity generated during periods when the reference price is above the strike price and the term of the CfD has not expired. See CHPQA Guidance Notes GN44 for more details. Whilst responsibility for the CfD policy lies with DESNZ, a CfD is a private law contract between the generator and the Low Carbon Contracts Company, a Government-owned company. See https://www.lowcarboncontracts.uk for further details. For details on how CfDs are administered, refer to the Electricity Market Reform: Contracts for Difference. 8. RENEWABLE CHP - Renewable Heat Incentive (RHI) 8.1. How to claim Renewable Heat Incentive (RHI) for renewable CHP For CHP Schemes wishing to claim the RHI solid biomass CHP tariff, the applicants will have to provide evidence of current CHPQA certification as part of the RHI accreditation process with Ofgem. Once accredited, participants in receipt of the solid biomass CHP tariff have to continue to be certified with CHPQA each year in order to retain the tariff. Where Ofgem establish an installation is not certified under CHPQA for any year, the installation will be assigned the relevant solid biomass (non-CHP) tariff for the period of non- certification. The RHI is now closed to new entrants. Page 9 © Crown Copyright 2026 Appendix 1 Sample CHPQA Certificate