More than 300 small-scale combined heat and power (CHP) units have been installed in the past year.

DECC published the statistics, which showed the majority of units were in the 30-600kW category used in offices, leisure centres and hotels.

CHP provides 7.5% of the UK’s electricity requirements and helps cut 14million tonnes of carbon emissions every year. DECC said it also plays a vital role in helping to meet the UK’s targets on reducing emissions.

Commenting on DECC’s report, Craig Dennett from the Combined Heat and Power Association said: “The growth in CHP over recent years is a tremendous success story for both the energy sector and the wider economy. We have only developed a fraction of the potential for CHP, so there is a huge opportunity for the Government to capitalise on this when it produces policies in support of its Heat Strategy later in the year.”

The small-scale CHP sector has been growing by an average of 20% every year.