Renewable Energy Association warns that sector could be 'strangled at birth' by proposed closure of £50m micro-renewables fund
Last month, the Department of Energy and Climate Change (DECC) announced it was closing the £50m second phase of the Low Carbon Ðǿմ«Ã½s Programme (LCBP), aimed at public sector buildings, to new applicants from June 2009.
It has now told renewables lobbyists that the proposed introduction of feed-in tariffs, an alternative incentive for micro-renewables that involves paying above market price to those who generate renewable energy, will not be introduced until April 2010.
With more than £23m still available in the LCBP pot, the industry is lobbying for the two-year programme to continue until the feed-in tariff is launched. Makers of micro-generation technology have become reliant on the LCBP, which pays up to 50% of product and installation costs for micro-renewables.
Manufacturers of heating devices will be most affected, as the DECC has not said when they can expect a replacement funding stream for their products.
Philip Wolfe, executive director of the REA, said: “The government rightly talks about a green jobs revolution, but these initiatives will be strangled at birth if the companies that deliver them have no market in the meantime.â€
Source
Electrical and Mechanical Contractor