Funding cuts could be death knell for renewable heat technology

Published:  18 March, 2010

UK: A 10-month gap before the Renewable Heat Incentive is introduced could stifle the renewables economy, according to the Solar Trade Association.

It has expressed dismay that funds in the Low Carbon Building Programme Phases 1 and 2 are set to expire within the next two months, a full 10 months ahead of the introduction of the Renewable Heat Incentive.

This, said Howard Johns, chair of the STA: "Could lead to job losses and bankruptcies within the renewable heat industry. The schemes were originally set to expire in Spring 2011.

"Stifling green shoot growth at this stage is also likely to have a long-term impact. The uptake of renewable heat technologies will effectively stall to the detriment of the RHI scheme for 2011 and beyond.

"The use of renewable heat technologies in the public sector, especially housing associations, has been an essential focus in the battle against fuel poverty.

"The STA is calling for government to allocate a further £10m to plug the funding gap and ensure a smooth transition to the RHI next year.

"In partnership with the Renewable Energy Association, the Heating and Hot Water Industry Council, the Heat Pump Association, Ground Source Heat Pump Association and the British Electrotechnical and Allied Manufacturers Association we are urging the Chancellor to reconsider the cull of the Low Carbon Building Programme."

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