Funding to subsidise domestic installation of renewables has failed to meet demand, leading the government to divert cash set aside for other programmes.
The DTI set up the Low Carbon Ðǿմ«Ã½s programme earlier this year to replace its Clear Skies programme of grants for renewables in buildings. The programme allocated £80m over the next three years to boost the use of technologies such as solar and wind power. However, the £3.5m allocated for homes over the 2006-07 financial year was fully allocated within just five months.
This unexpected demand has forced the DTI to announce that it is going to reallocate money from its programme of grants originally reserved for commercial and public buildings. This will make a total of £12.7m available in household grants up until mid-2008.
The move comes after condemnation by renewable energy groups that have warned that more funding was urgently required to avert the risk of the homeowner market ‘dropping off’.
In a letter to the energy minister, The Solar Trade Association said: “Our experience from previous grant schemes suggests that many householders will simply not proceed with their installations if there is the prospect of being able to obtain grant support if they wait until the subsequent year’s pot is open for business. The stop start this leads to in the industry is deeply damaging to business and investor confidence.â€
The reallocated funding will now bring the money available for household grants nearer to the level previously available under the Clear Skies and solar PV Major Demonstration grants.
DTI officials were due to meet with representatives from the microgeneration industry in order to discuss in more detail how to take the Low Carbon Ðǿմ«Ã½s programme forward.
Source
Ðǿմ«Ã½ Sustainable Design
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