Over the past few years, interest in micro CHP has grown tremendously and, in early 2004, the first true micro CHP units became available in the UK. However, there is still a great deal of confusion about the potential role for this technology. Analysis of micro CHP markets suggests that the UK is the most viable in Europe, due to the number of existing boiler systems, access to gas networks, and housing stock that has limited potential for further energy efficiency improvement. Micro CHP effectively increases the diversity of generation without increasing gas consumption and has no issues concerning planning consent, network infrastructure, etc.