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Funding for micro-renewables

19/03/2008

More householders will be able to access grants of up to £4,000 and community groups up to £100,000 to install energy generating equipment including solar panels and heat pumps, John Swinney said today.

The Scottish Government has tripled funding to help householders, small businesses and local communities generate their own clean energy.

Speaking at Scottish Renewables' annual conference, Finance Secretary John Swinney announced how the £13.5m of increased support for microgeneration and community renewable initiatives in each of the next three years will be used.

The budget for grants to community projects and for household installations will increase while small businesses will for the first time be able to get loans for microgeneration as well as for energy efficiency measures.

Mr Swinney said:

"We recently announced our intention to introduce a statutory target to reduce Scottish emissions by 80 per cent by 2050, as part of our proposals for Scotland's first Climate Change Bill.

"Everyone has a part to play and the Scottish Government is providing strong leadership by tripling funding support to encourage householders, businesses and community projects to generate their own renewable energy. We want to respond to the growing wish for personal involvement in the global effort to tackle climate change.

"We recently launched a consultation on planning reforms, designed to make it easier for people to install microgeneration equipment on their homes.

"Low carbon technologies in our renewable energy mix, including microgeneration and combined heat and power, will make a significant contribution to Scotland's future prosperity and help build increased, sustainable economic growth.

"By tripling government funding for community microgeneration initiatives and reforming the planning system, the Scottish Government is putting in place the incentives for people to generate their own clean energy and make a contribution to Scotland's sustainable energy future."

Jason Ormiston, Chief Executive of Scottish Renewables, said:

"If Scotland is to match the EU commitment to deliver 20 per cent of our energy from renewables by 2020, a sustainable heat sector is critical to delivery. That is why we welcome the Scottish Government's commitment to triple funding for microgeneration in Scotland up to 2011, its commitment to maximise the delivery of renewable heat and recognition of the role micro renewables can have in combating climate change and fuel poverty."

Of the £13.5 million to be invested by the Scottish Government in community and microgeneration in each of the next three years, £5.25 million will be available for community projects, £3.5 million for householders and £2 million for businesses through loans. The remaining cash will be used to provide advice and support to those seeking to install renewable technologies. Technologies including solar, heat pumps, biomass, micro wind and micro hyrdo will be supported by the scheme.

Funding of up to £4,000 is available for householders and up to £100,000 for community groups. Applicants will need to demonstrate that they are minimising their energy demands as much as possible by installing energy efficiency measures such as draught-proof and insulation. Community projects must also demonstrate how the project will benefit the community and show that it has a good level of support locally.

The householder scheme will be managed by the Energy Saving Trust, who will continue to take responsibility for the community grant scheme in Lowland Scotland. Highlands and Islands Enterprise will manage the community grant scheme in its area. Financial support for businesses will be provided by Loan Action Scotland (LAS). The loans must be repaid in 7.5 years.

Climate Change and Infrastructure Minister Stewart Stevenson recently launched a consultation on changes to the planning system designed to make it easier for people to install certain kinds of microgeneration equipment on their homes.

Page updated: Wednesday, March 19, 2008