Grants

Government announces further £750K for green electricity
04 November 2005

The Government's Solar Photovoltaic's (PV) Major Demonstration Program - which is administered on behalf of the Department of Trade and Industry (DTI) by the Energy Saving Trust - is to officially end in March 2006, with the final round of funding for stream 2 (commercial) grants in February 2006. As demand for grants has been so high, the DTI has announced a further £750,000 to support the program through to completion.

The scheme provides funding of between 40 and 50 per cent for the installation of solar electricity panels for both domestic (stream 1) and commercial (stream 2) applications. The aim of the program has been to kick start the UK market for solar PV, by demonstrating the long-term potential of the technology and thereby encourage the use of more environmentally friendly and sustainable methods of generating electricity.

Since 2002, the program has provided £26 million of funding for 1,200 domestic and 180 commercial installations. As a result, it is estimated that 20,000 tonnes of carbon will be saved over the lifetime of the installations, thereby making an important contribution towards reaching the UK's climate change targets as well as the Government's target of 10 percent of energy generated to be from renewable sources by 2010.

Such has been the demand generated by the program that applications for stream 1 have increased eight fold (from 100 applications in 2002/03 to currently 1,200 applications). Grant funding for stream 1 has always been subject to availability and is based on a first come first serve basis. Due to the high demand for grants under Stream 1, the program will continue to offer grants until the budget is fully allocated (approx 1,400 installations). The Energy Saving Trust will provide one months' notice of full allocation and will continue to accredit new installers while there are available funds remaining.

The PV program will be replaced by the DTI's Low Carbon Buildings Program, which will supersede the current grant schemes for small-scale renewable energy technologies. Energy Minister Malcolm Wicks has confirmed that the DTI will continue to support solar PV through the new program which will start in April 2006, subject to State Aids clearance. .

The Energy Saving Trust has also conducted a study on behalf of the DTI to examine the future potential of micro generation technologies, such as solar PV, small-scale wind turbines and fuel cells. The study, which will contribute towards the development of the Government's micro generation strategy, assesses the costs and benefits of micro generation technologies under various scenarios.

About the Energy Saving Trust
The Energy Saving Trust was set up by the UK Government after the 1992 Earth Summit in Rio de Janeiro and is one of the UK's leading organisation's addressing the damaging affects of climate change. It aims to cut carbon dioxide emissions by promoting the sustainable and efficient use of energy. The Energy Saving Trust is a non-profit organisation funded by government and the private sector.
The Energy Saving Trust provides free, impartial advice on how to make homes more energy efficient and save money on household bills.