Green energy leaders have expressed their “astonishment and concern” after the government closed a scheme to help fund schools, hospitals and other public building switch to renewable energy after the project ran out of cash.
The Renewable Energy Association (REA) said the announcement had pushed the UK renewables industry to the “cliff edge” just weeks after the government laid out plans for an eco-revolution, at the launch of its new low-carbon industrial strategy.
The Department of Energy and Climate Change (DECC) today announced the funding stream for solar power under the Low Carbon Building Programme (LCBP) had run out.
No applications made since the 26 February are permissible and the whole stream is due to end in June.
In December last year an extra £7 million was allocated to the solar power stream of the LCBP to tide it over until the programme closed.
However, according to the REA, this funding had all been allocated by 26 February 2009. They claim a further £12 to £15million still remains in the LCBP budget and at the present rate of spend it is predicted that £8 million will remain unspent by the end of the programme.
DECC officials have said that this current phase will not be extended and any remaining funds will be sent back to the Treasury.
The REA recommends the immediate reallocation of remaining LCBP funds on a first come, first served basis so all microgeneration technologies can gain maximum benefit.
In a statement, the industry group, said: “Having brought this problem to the attention of DECC in early Feb the Association was surprised that nothing had been done to prevent the PV funding running dry.
“The end of the LCBP will leave many REA members left in limbo with no funding as the recession bites. The industry is looking at a serious funding gap and contraction as some firms are unable to stay afloat.”
Philip Wolfe, REA’s Director General said: "This latest disaster in the Low Carbon buildings Programme is completely at odds with the Green New Deal we hear so much about.
“We are talking about relatively small sums to support UK manufacturing, technological innovation and local jobs. This is an industry with a very bright future and a key contributor to the low carbon future we are aiming for.”
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