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Energy: Microgeneration

Volume 684: debated on Tuesday 25 July 2006

asked Her Majesty’s Government:

Whether current grants towards the upfront costs of installing micro-renewable energy systems provide a sufficient incentive to investors. [HL7136]

The Low Carbon Buildings Programme is providing £80 million to reduce upfront capital costs for a range of microgeneration technologies, building on the support already provided under the PV Major Demonstration Programme and the Clear Skies Initiative. Uptake of the grants offered to date indicates that the level of support has given sufficient incentive to those considering investing in microgeneration for their premises.

The DTI commissioned a study from the Energy Saving Trust, published in November 2005, to predict the future uptake, costs and benefits of microgeneration technologies. The study demonstrated that some microgeneration technologies are currently cost-effective but are still not being taken up, indicating that cost is not the only factor that investors consider when installing microgeneration technologies.

The Government are working, with Ofgem and with industry, through their microgeneration strategy, to create conditions under which microgeneration becomes a realistic alternative or supplementary energy generation source for the householder, for the community and for small businesses.