Energy Academy
Economics & Carbon Assessment9 / 13

Cost-Benefit Analysis

Capital cost, fuel cost, electricity export revenue (or avoided grid purchase); 10-year payback.

10 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026


A CHP scheme is a major capital investment that earns its return over many years, and the financial case rests on one central idea: the value of the two energy outputs versus the cost of the fuel it burns. This lesson works that case through with a full numerical example at the platform's reference prices, covers the whole-life costs beyond the unit, and lists what kills a scheme's economics.

In this lesson

  • 01The spark spread, quantified
  • 02Capital and lifecycle costs
  • 03Sources and further reading