UK Renewable Energy Manufacturers Left “in limbo” After Government Grant Runs Out

The UK PV Association, which represents solar panel companies in the United Kingdom, warned that they had become increasingly frustrated after the Low Carbon Building Program Phase 2 was closed to solar applications last week.

The $83 million program included funding for hospitals, schools, and other public sector buildings to install photovoltaic panels on their roofs. But the agenda was closed down “due to unprecedented demand.”

To make matters worse for the industry, an announcement has been delayed on a clean energy cash-back scheme called “Feed-in Tariffs,” which would allow individuals to sell renewable energy back to the grid. The decision was expected this month, but has been delayed amid wrangling between the energy department and the treasury.

Last week the UK energy department announced it was closing the scheme to companies and public sector applicants – although Phase 1, which applies to individual households, is still open. The energy department has also introduced a waiting list on offering grants for large-scale wind, hydro, and biomass projects.

A spokesman for the energy department said feed-in tariffs were on track to begin next April. “It’s very encouraging that there’s been an unprecedented demand for this technology but we have to be fair to all renewable technologies.”

I believe this is an unfortunate situation for the installation companies, as it leaves them unable to plan their businesses and unaware of what advice to give customers. These events are proving to be another unnecessary hiatus in support. This news comes at an awkward time for the UK government, in the midst of the international climate change talks in Copenhagen. The removal of the grants could very well put green jobs in jeopardy and undermine Britain’s credibility in Copenhagen.

View a previously written post by Mouli Cohen about clean energy

  • December
  • 10th, 2009
  • 11:11 am

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