Micro combined heat and power (micro CHP) is a way to use one energy source to both heat and power your home. It does this by using a special kind of machine called a micro CHP unit. The micro CHP unit takes a form of energy like gas, oil, or biomass and turns it into both heat (water or air) and electricity. This saves you money on electricity bills because the micro CHP unit can generate electricity without having to buy it from your electric company. It also saves energy by capturing heat that is usually lost when producing electricity, and using it to heat your home.