Government Cuts Short Low Carbon Building Programme
This month the government has announced plans to end the ‘Low Carbon Building Programme’ (LCBP) within the next two months, well before the previously scheduled date.
The LCBP grant was introduced to encourage both homeowners and the public sector to install renewable heat technologies such as ground source heat pumps, air source heat pumps and solar thermal hot water systems. Initially the end of the scheme was due to coincide with the start of the Renewable Heat Incentive (RHI) which is due to begin in Spring 2011.
The news comes as a blow to the industry, as renewable technologies had witnessed massive growth and were one of the only true economic success stories during the recession.
Whilst the full impact of the cut-back in funding is unknown, the Solar Trade Association (STA) has expressed dismay at the decision. Whatever its size, the funding gap is likely to lead to job cuts and bankruptcy within the renewable heat industry as homeowners and public sector companies cease to see these technologies as viable alternatives.
Furthermore, the cut backs will leave the industry in a precarious position when the RHI does begin, reducing its previously publicised impact.
Earlier in the month the STA, along with other large industry associations in the renewable heat industry wrote a letter to the Chancellor requesting the reconsideration of his decision, along with the allocation of an additional £10 million investment into the scheme. The response to this is still pending.
March 26, 2010 in Green Energy Articles | Permalink | No Comments