Renewable energy and trade bodies have criticised the DTI grant system whereby the monthly cap ran out on the first day of the month.

The Department of Trade and Industry’s low carbon buildings programme has had a chequered history. The £3.5m originally allocated for the 2005-06 fiscal year ran out after just six months. Macolm Wicks shifted funds, increased the original amount (£6.5m) by £6.2m but put a monthly cap, of half a million a month to ensure the lasted until 2008.

The Renewable Energy Association accused the DTI of killing off demand from homeowners keen to go green. Other bodies say it creates uncertainty in the industry.

A DTI spokesman said “By this time [2008] some of our wider measures to promote micro-generation should be taking hold and we believe the household sector may have matured to a point where government subsidy is no longer needed.”

The scheme gives grants up to 50% for solar photovoltaic panels, £400 for solar thermal and 30% for wind turbines, hydro-electric installations or air-source heat pumps.

Since the launch of the Low Carbon Buildings Programme Phase 1 in April 2006, £6.4 million has been allocated to 4,370 successful applicants.

http://www.lowcarbonbuildings.org.uk