Baxi Group sees 'silver lining' in closure of Government's Low Carbon Buildings Programme

Date:

24/06/2010

The recent termination of the Government-funded Low Carbon Buildings Programme (LCBP) clears the way for a "broader, more financially sustainable approach in encouraging the installation of low and zero carbon (LZC) heating technologies in our home", according to the leading player in the sector, Baxi Group.

Since its introduction in April 2006, the LCBP has provided an estimated 20,000 grants for the capital and installation cost of microgeneration equipment for homeowners and not-for-profit organisations. As part of the Coalition Government's £6bn cost-cutting programme to reduce the budget deficit, the Department of Energy and Climate Change (DECC) announced the closure of the £34 million scheme on 24th May. 

"On the surface, the termination of the LCBP appears to be bad news for the LZC heating sector" says Simon Osborne, Specification Channel Manager at Baxi Group. "However, in the Queen's Speech the Government announced the introduction of new Green Loans for those who want to save energy. These offer a more financially sustainable option than the LCBP, and will, in our view, do more to grow investment in LZC technologies, especially for those on low incomes. Loans will be paid back through a pay as you save scheme which, unlike the LCBP, does not require the homeowner to finance the LZC technology up front".  

DECC has indicated that all new incentive schemes and tariffs will be designed to operate under the Microgeneration Certification Scheme (MCS) framework and supported by tariffs on the utility bills. Full details of the Green Loans, new incentives and tariffs are expected to be announced in the forthcoming Energy Bill and the months that follow.

"This new link with the MCS will be an important change" adds Osborne. "It will effectively pass the ownership of being green from the eligible few under the LCBP to everyone. That has to be a positive step forward."

DECC has announced that the £63 million of LCBP grant applications already in the system will be honoured, should they satisfy the programme's assessment criteria. Baxi Group is well-placed to assist any successful applicant through this process with its extensive range of LZC technologies, including its ground-breaking micro-CHP (combined heat and power) unit, the Baxi Ecogen.

All Baxi Group LZC technologies are Solar Keymarked and MCS certified