Assembly Member Mick Bates has criticised the move by the UK Government to close the Low Carbon Building Programme (LCBP) to new applications and has written to the Department of Energy and Climate Change urging it to rethink this move, which leaves the renewable heat sector without the support it needs to keep afloat until the Renewable Heat Incentive comes into force next year.
The decision to close the LCBP is part of the UK Government commitment to delivering departmental spending cuts, of which £85million is set to come from the Department of Energy and Climate Change (DECC), with £3m of savings to be made from closing the LCBP to new applications.
Commenting, Assembly Member Mr Bates states:
“The last Labour Government left the UK in a terrible financial situation and I understand the need to make savings across departments to help reduce the deficit. However I was deeply disappointed to learn of the closure of the Low Carbon Building Programme to new renewable heat applications, which will threaten the future of this sector by removing frontline support for the installation of microgeneration technologies, which is one of the most practical ways to reduce carbon emissions from the home.
“Microgeneration technologies not only help individuals to save money on their fuel bills, but the installation of these technologies stimulates our industry and economy, providing jobs and skills that are much needed in the current economic climate. Sadly the renewables industry relies heavily on grant support, so with the Renewable Heat Incentive (RHI) not due to be introduced until April 2011, this leaves no support for the renewable heat sector in the meantime as people will not be able to afford to install green technologies.
“Businesses in the renewable heat sector have been left in complete limbo following the closure of the LCBP, after they were assured by the last Government that the scheme would run to December or until the allocated funds ran out to enable the RHI to be properly set up. Many businesses have based their future planning on this assurance and now face uncertainty over whether they will survive once the current workload dries up.
“I have written to the Department for Energy and Climate Change, urging it to rethink this decision which removes frontline support for renewable technologies. If this is not possible then the industry needs a clear statement of support by publishing full details of the Renewable Heat Incentive urgently, so that customers and businesses have the clarity needed to sustain this industry into the future.”
