Access Renewables are disappointed to learn that the new coalition governments recent cuts to public spending have resulted in the hugely popular Low Carbon Buildings Programme closing to all new applications with immediate effect.
The Low Carbon Buildings Programme was managed by The Department of Energy and Climate Change and provided both homeowners and public sector buildings (such as schools and councils) with funds towards the installation of renewable technologies such as Solar and Heat Pumps. The decision to close the fund came at the same time as Government announced spending cuts throughout the public sector.
The closure of the scheme prematurely will result in a number of projects, both large and small to stall or be cancelled entirely, putting pressure on renewable energy companies throughout the UK. In February this year the scheme unexpectedly closed all applications for electricity-generating projects (such as solar PV and wind turbines) following the announcement of the Clean Energy Cashback Scheme – which is now in operation. The recent cuts now mean that heat-producing projects (such as heat pumps and solar thermal) are no longer eligible for funding. The previous Government was planning to implement the Renewable Heat Incentive from April 2011, which was to operate in a similar manner to the electricity-based cashback scheme. However the future of the scheme is still uncertain. Therefore the gap between now and April 2010 will be difficult for installers nationwide.
Sean Collier of Access Renewables comments “The industry has had a very strange 12 months, first with original cuts and funds running low last year, and now the closure of the entire LCBP scheme throws a lot of projects into doubt and difficulty. We will be working hard with customers and suppliers to seek alternative funding and assistance, and we will be campaigning relentlessly to ensure the Renewable Heat Incentive is launched early next year.”
The scheme website suggests that all existing applications prior to closure will still be processed, and any customer who have already received their grant offer will still be able to make a claim against it.
You may already know that towards the end of 2009 and early 2010, there was a shortage of solar modules. The situation improved and most manufacturers are reporting reasonable availability. However, the industry is now suffering from a shortage of solar components, in particulr solar inverters (which convert the energy from solar PV panels to use in the home or premises). This is as a result of rising demand which followed the announcement of the Clean Energy Cashback Scheme, extensions to subsidies in other European countries and a worldwide shortage of components required in the manufacturing process of Inverters.
