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Solar Industry 'On The Brink Of Crisis'

Posted: 04/04/2006

The solar power industry has warned that it is on the brink of crisis as a result of Government "incompetence" in the awarding of grants for householders wishing to install renewable energy systems. The previous grant sheme, 'Clear Skies' ended at the end of March without a working replacement.

In theory, the DTI's new Low Carbon Buildings Programme should have been launched on the 3rd April but details of its operation have not been finalised and application forms for grants will not be available before the end of this month.

The Energy Savings Trust, which is administering the new Low Carbon Buildings scheme for the Department of Trade and Industry, admits that grants will not be available until the end of this month at the earliest. A spokesman said there would only be a "short gap" before householders could begin claiming grants again, although their website says individuals cannot even register for an application form until April 24th.

The trade bodies for solar and wind power, the Renewable Energy Association and the Solar Trade Association, believe that funding for household installations will fall under the new grant system. They say the uncertainty about the new scheme, the likelihood of reduced funding and the delay in grant applications is damaging an industry which should be at the forefront of attempts to reduce Britain's carbon emissions. Germany installed solar systems in 200,000 homes last year, and potentially Britain could do the same.

Seb Berry, a spokesman for the Renewable Energy Association, said "The Government says we are all players on the stage of climate change but it is cutting the money for individuals to install clean energy." The grant problems are symptomatic of a wider reluctance by central Government to throw its weight behind the renewable energy sector, he said. Unless the Government improved its performance, there could be a "brain drain" of talented installers and technicians to Europe.

Sunpowered Energy Systems, of Southsea, Hampshire, may have to lay off some of its 18 staff "within weeks" because of the grant delays.

"The industry is on the verge of collapse and it's because of incompetence," said Sunpowered's managing director, Sean Cavendish. "We have been left in limbo. People are asking us: 'Is there going to be a grant or no grant?' and we don't know. How can you have a grant, stop it and have nothing to replace it? These programmes are being run by people who don't understand business."

Under the Low Carbon Buildings programme, £18.5m is being made available to fund micro-generation, carbon-free schemes. Some £6m of the money is earmarked for individuals wishing to add solar systems to existing homes while the majority is for small community projects and new buildings.

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