BUDGET COMMENTS: "Good but could do better" from a green perspective
Chancellor Alistair Darling’s final budget contained some good news for green consumers and green businesses, but Barry Johnston, MD of UK renewable energy company Solar Twin Ltd. says; “Good news, but he could have done better.” And asks; “Will it really transform the UK into a sustainable economy?”
Business benefits included a £2.5 billion one off growth package for small businesses, support for ‘fledgling’ businesses through a temporary increase in small business rate relief, the launch of ‘UK Finance for Growth’ and more public sector contracts for SMEs.
Barry Johnston, MD of Solar Twin Ltd. said:
“Regarding low-carbon growth, the off-shore wind and nuclear capacity dominated but is nuclear really green? Support for the UK offshore wind industry will really help to decarbonise the UK electricity grid and the announcements on low carbon investment and ‘green jobs’ were welcome.”
These included:
- A summer consultation on how to provide more certainty for low-carbon investment – concrete proposals in autumn – white Paper by spring 2011.
- Green Investment Bank, to fund low-carbon infrastructure (emphasising off-shore wind) – consultation in summer.
- Launch of UK Finance for Growth to streamline the Government’s SME finance support – including small and medium low-carbon technology businesses
- Support for UK offshore wind industry.
- Commitment to reduce government carbon emissions by 30% by 2020 [More on this below.]
- Pay As You Save offerings to help householder with upfront costs of microgeneration and energy efficiency. [More on this below.]
- Halving company car tax for ultra-low carbon cars for 5 years.
Looking at the microgeneration sector in particular, Barry Johnston, MD of Solar Twin Ltd. added: “There are some real measures to encourage the renewable energy sector here but the devil is in the detail.” He adds;
“Support for low carbon SMEs, investment and growth in UK low carbon supply-chain businesses should enable those developing new low carbon technologies to take them from ‘concept to commercialisation’ fills a much needed gap. UK Finance for Growth (UKFG) will be able to work in partnership with DECC and Regional Development Agencies to coordinate all public low-carbon SME equity schemes. Low-carbon businesses will also be able to access financial support from the wider £4 billion stock of SME finance products overseen by UKFG, where appropriate. UKFG will also join the Low Carbon Innovation Group, the body established to agree an overall strategy for the Government’s low-carbon grant programmes.”
“Separately, the Government continues to work with UK banks and the EIB to ensure that small businesses will be able to access up to £4 billion of EIB funds by the end of 2011.”
“We welcome the news that more technologies will be included in the Enhanced Capital Allowances (ECA) scheme, including two new sub-categories – for ‘self-driving’ magnetic motors and biomass air heaters. However, it is a pity that the outdated criteria used for eligibility for ECA excludes the most sustainable technologies.”
“Emissions reduction plans are long overdue for individual Government departments. Targetting savings of £300 million per year by 2012-13, all departments will be required to publish individual carbon reduction plans through to 2020, enabling a minimum 30% reduction in estates and operations emissions between 1999 and 2020.”
“For householders, the development of Pay As You Save offerings is great news. A joint ‘Pay As You Save’ forum between Government and consumer finance providers will be set up to enable consumers to cover the upfront costs of microgeneration and energy efficiency measures. These loans will allow householders to pay back the money borrowed to fund the installation from a portion of the money saved on bills or revenue from CECB below.”
“Clean Energy Cashback is given a mention in the report but we don’t learn anything new – there is just confirmation that electrical feed-in tariffs (FIT) will be available from 1st April 2010, subject to state aid and parliamentary approval, and that the consultation on the Renewable Heat Incentive (RHI) has been published, including the proposal that incentive payments should be exempt from income tax. Carbon-saving estimates for the two schemes (FIT’s and RHI by 2020 are 7 MtCO2 for Feed-in Tariffs and 60 MtCO2 for the Renewable Heat Incentive. This just shows just how important renewable heat is to UK!”
ENDS – 699 words
Solar Twin Ltd is a UK renewable energy company who have installed thousands of Solartwin solar water heating in the past decade. Winners of DTI-SMART awards for innovation from the UK government and a best buy from Ethical Consumer Magazine, from the outset the company specified sustainability as the essence of their business. For example they pioneered a reliable low carbon solar sales technique which did not involve surveying on site (and all the mileage and emissions which his brings) by initially using satellite photographs of a customers a home to determine if roofs were suitable locations for well-performing solar panels.
Solar Twin’s corporate values are: “Maximising performance of one component at the expense of the big picture” is no longer the way forward to the renewables industry . We need to look wide at sustainability, energy efficiency and a “whole of life” level. These factors on top of reliability and getting rid of bought in energy are what really matters to consumers.
Solar Twin’s third generation solar water heating system is a cost-effective route to renewable energy heating. Solartwin is a quickly fitted and affordable solar water heating system. Installed in a day, it contains far less kit than old solar hot water systems and is far more reliable as a result. So simple, Solar Twin usually requires no re-plumbing, nor antifreeze, nor mains electricity, providing plenty of hot water, dependability, minimal maintenance and better payback.
Set up in 1998, Solar Twin Ltd. is based in Chester, Cheshire. Technology was developed at Napier University in Edinburgh.
The Solartwin retail website: http://www.solartwin.com
The Solartwin trade website: http://www.solartwinprojects.com
Further information, photos & interviews:
Barry Johnston Managing Director, Solar Twin Ltd.
Email: barry@solartwin.com Mobile: 07712 611658
Tel: 01244 403407 Fax: 01244 403654
Home: 01244 342656 Web www.solartwin.com
Press contact:
Jane Harrad-Roberts Marketing Projects, PR
Email: jane@marketingprojects.co.uk Mobile: 07785 395705
Tel: 01244 330000 Fax: 01244 330101
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