News analysis Funding cuts
Coalition clips scheme’s wings
A programme aimed at encouraging the take-up of micro-renewables has become a casualty of the spending squeeze. Carina Bailey reports on a mixed response from the construction industry
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The sudden closure of the Low Carbon Buildings
Programme (LCBP) to new applications, without official confirmation that the Renewable Heat Incentive (RHI) will fill the void next year, has left the sector in limbo, some in the industry fear. The LCBP grants scheme for micro-generation equipment was officially closed without notice on 24 May by the Department of Energy and Climate Change (DECC). Britain’s deficit was cited as the reason behind the move, but, overall, it will save just £3m of the £6bn of savings that the new coalition government is striving for in this financial year. The Solar Trade Association (STA)
branded the closure a ‘retrograde step’ in light of the government’s ambition to reach 12% of renewable heating by 2020. Howard Johns, chairman of the
STA, said: ‘It’s a very disappointing move from the new coalition, which is aiming to be the greenest government ever. Solar thermal offers the UK a unique opportunity for jobs, growth and energy security, and yet we have once again been undermined for short-term gain. ‘At this point we have no idea
what the RHI will look like and whether we will get it at all – effectively leaving our sector in limbo, and jobs at risk.’ The STA is calling on the government to plug the funding hole left by the LCBP until the RHI is confirmed and introduced. During the years it was open, the
LCBP provided about 20,000 grants for the capital and installation costs of micro-generation equipment, of which, to date, around 11,000 have been for thermal technology. DECC claims these have
20 CIBSE Journal July 2010
produced savings of 300,000 tonnes of CO2. But, despite these benefits, it argues that there is no longer a need for the LCBP, following the introduction of feed-in tariffs (FiTs) for electrical micro- generation on 1 April this year. Its closure will contribute to the £85m of planned savings DECC announced in May (prior to last month’s Emergency Budget). In a statement, DECC said: ‘It
was anticipated that support for the proposed Renewable Heat Incentive for heat under LCBP would continue
up until its proposed introduction in April 2011. ‘However, demand for grants
has been unprecedented and we had very little unallocated funding remaining. It has been decided that by closing the programme now, these unallocated funds will contribute to DECC’s overall savings.’ In contrast to the STA, the trade
association for surface heating and cooling, UHMA, anticipates that the warm-water underfloor heating market could benefit from
the closure of the LCBP, arguing the programme was fundamentally flawed to begin with. Chris Ingram, UHMA’s chairman,
said: ‘The LCBP put the sole emphasis for efficiency on the generation of heat, completely ignoring the vital roles of controls and the heat emitter. ‘If it wants to make real progress
towards the carbon reduction targets, the coalition government must promote a holistic approach to the way we heat our buildings, rather than investing huge sums of money
www.cibsejournal.com
Illustration: Russ Tudor
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