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.
Solar firm urges homeowners to act now
Tuesday, July 28th, 2009Following the recent announcement by the government to introduce a feed-in tariff similar to those found in Europe, a solar installer is urging homeowners to act fact in order to obtain both a grant and access to the new feed-in tariffs.
Act now to benefit from both schemes
County Durham-based Access Renewables is urging homeowners who are considering renewable energy to act “with speed” to benefit from both a grant to install solar PV and the new legislation being introduced early next year which will see the sale price of energy from their systems rocket from around 10p to 36.5p per unit, making solar photovoltaic systems a very healthy investment.
From April 2010, the government is proposing to introduce a ‘feed-in’ tariff which basically allows homes which have a solar PV or wind turbine to sell back any excess energy at a price around 3 times that of a standard unit of electricity bought from a power supplier. The government’s Low Carbon Buildings Programme also provides a grant of upto £2500 to homeowners wishing to install solar photovoltaic systems into the home.
Sean Collier of Access Renewables comments “We’ve been calling for feed-in tariffs such as those found in other European countries for many years now, and the recent announcement by the Government shows that they have listened to us. It will stimulate growth of the industry, providing much needed jobs whilst reducing the carbon emission of homes.”
The proposal to increase the amount self-generating homes are paid for putting green energy into the National Grid is expected to last for around 25 years – which coincides with the expected product life of the new solar PV systems. The means that a system installed into a typical UK home which installs a solar PV system could benefit from £1000 per year, based on income from exporting electricity and the savings of using energy generated.
For example: a typical UK home can install a 2.5kw solar PV system which would generate about 2,125 units (kWh) per year. Homeowners would receive 36.5p for each kWh unit they generate (2125 x 36.5p = £775), plus an additional 5p per each kWh they export (the average is around 50% exported= 1062 x 5p = £53). In addition to the income, the calculated savings as a result of not purchasing energy, instead using 50% of the energy from the installed system is £138 (1062 x 13p). So the overall expected benefit for the average installed PV system is £966 per year. Based on an installed cost of £10,000 including VAT and £2500 grant, the installation would return 9.7% per year.
Sean Collier adds “The new tariffs mean that Solar PV has become more of an attractive investment, and boosted by the availability of a £2500 grant available until April next year, we are urging homeowners to install systems without delay”
Access Renewables design and install Solar PV systems which comply fully with both the Low Carbon Buildings Programme grant scheme, and the new feed-in tariff scheme. The installer covers the entire country, and installs systems into hundreds of buildings each year.
Notes to editor
Please contact Sean Collier – Access Renewables on 07534 252472 for further information, interviews or images.
Tags: Feed-in tariffs, Funding, LCBP, solar homes, solar investment, wind investment, Wind Turbines
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