Funding gap poses threat to renewables economy
The Solar Trade Association has expressed dismay at a 10-month gap between the expiry of funds in the Low Carbon Building Programme and the introduction of the Renewable Heat Incentive next Spring. The association is concerned that the gap will lead to job losses and bankruptcies in the renewable-heat industry.
Over the last two years, renewable technologies have enjoyed phenomenal growth, and the renewable-heat industry can be considered a true economic success story through the recession. This has been largely due to the previous commitment of Government to support and nurture it.
The concern is that a gap in financial stimulus will lead to job losses and destruction of an industry that needs to be gearing up for the introduction of the Renewable Heat Initiative.
The STA is calling for Government to allocate a further £10 million to plug the funding gap and ensure a smooth transition to the RHI next year.
Howard Johns, chair of the STA, said, ‘DECC are leading the way globally with the Renewable Heat Incentive. However, the current funding gap severely undermines the industry’s ability to deliver on the RHI when it arrives. We are now faced with 10 months of shutdown before the new funding stream becomes available. It seen unbelievable that £10 million cannot be found to keep the industry growing over the coming year.’
