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Low Carbon Building Programme

Volume 456: debated on Thursday 8 February 2007

To ask the Secretary of State for Trade and Industry pursuant to the answer of 30 January 2007, Official Report, column 181W, on the Low Carbon Building Programme, what the evidential basis is for the statement that the non-grant measures will be effective in sustaining demand for microgeneration after June 2008. (119362)

The Energy Saving Trust carried out a study (Potential for Microgeneration: Study and Analysis) on behalf of the DTI into the potential of microgeneration. The study examines the impact of non-grant measures such as the Renewables Obligation, reward for export, the Energy Efficiency Commitment and Building Regulations. The conclusions clearly show that these non-grant measures do stimulate uptake over the longer term.

We are also starting to see evidence of the impact that the introduction of planning policies requiring onsite renewables is having on demand for microgeneration. For example, by September 2006, Croydon council had approved 111 renewable energy projects since the introduction of a requirement for all new developments over a certain size to provide at least 10 per cent. of predicted energy needs through onsite renewables.

The Department intends to undertake further research to build on the EST study in terms of quantifying the impact of various policy measures on the uptake of microgeneration.

To ask the Secretary of State for Trade and Industry what criteria he will use to determine whether householder grants are no longer necessary to promote microgeneration. (119366)

The Energy Saving Trust carried out a study (Potential for Microgeneration: Study and Analysis) on behalf of the DTI into the potential of microgeneration. The study examines the impact of non-grant measures such as the Renewables Obligation, reward for export, the Energy Efficiency Commitment and Building Regulations. The conclusions clearly show that these non-grant measures do stimulate uptake over the longer term.

We are also starting to see evidence of the impact that the introduction of planning policies requiring onsite renewables is having on demand for microgeneration. For example, by September 2006, Croydon council had approved 111 renewable energy projects since the introduction of a requirement for all new developments over a certain size to provide at least 10 per cent. of predicted energy needs through onsite renewables.

The Department intends to undertake further research to build on the EST study in terms of quantifying the impact of various policy measures on the uptake of microgeneration.

To ask the Secretary of State for Trade and Industry why his Department has removed community projects from Phase One of the Low Carbon Buildings Programme; and if he will make a statement. (119475)

We have seen significant interest for domestic projects over the first six months of the Low Carbon Buildings programme Phase 1. In response to representations from industry we have therefore reallocated the £28.5 million budget to provide a further £6.2 million to support household projects. In order to facilitate this reallocation we have closed the Communities stream in Phase 1, along with other measures. We believe that these changes should allow support for householders to continue until June 2008.

It is important to note that going forward some community projects can continue to apply for support under stream 2 of Phase I, which is a competitive process primarily catering for larger projects and open to the private sector. However, the majority of community projects will receive support under Phase 2 of the Low Carbon Buildings programme, where we have a budget of £50 million.

To ask the Secretary of State for Trade and Industry what steps his Department is taking to increase grant funding for household projects under Phase One of the Low Carbon Buildings Programme. (119476)

We currently have a total pot of £12.7 million, including management fees, for the Low Carbon Buildings programme Phase 1 household stream, which on projected demand levels should allow householder funding to continue until June 2008. By this time, some of the wider measures to promote micro-generation should be taking hold, and we believe the sector may have matured to a point where householder grants are no longer necessary. There are no plans to increase funding.

To ask the Secretary of State for Trade and Industry what will replace the small grants for community projects in phase 1 of the Low Carbon Buildings Programme. (119609)

The Communities Stream of the Low Carbon Buildings Programme Phase 1 closed on 1 February 2007. Going forward some community projects can continue to apply for support under the stream 2 of the Low Carbon Buildings programme Phase 1, which is a competitive process primarily catering for larger projects and open to the private sector. However, the majority of community projects will receive support under Phase 2 of the Low Carbon Buildings programme, where we have a budget of £50 million.