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How the cuts affect the renewables sector

 Nov, 03 - 2010   Renewable Energy

The country held its breath a couple of weeks ago as it waited to hear where the cuts would strike.

Fortunately, the renewables sector got off relatively lightly and all building services installers (if they haven’t done so already) should take steps to get involved with one of the few growth industries in the UK.

Here’s an overview of how what the cuts mean for low-carbon technologies:

The Department of Energy and Climate Change (DECC) is facing total cuts of 18% over the next two years – not too bad when you compare other departments slashed by 40%.

After much speculation the Renewable Heat Incentive (RHI) will be going ahead, which is great news for the heating industry.

From 2011-2012 there will be £860 million funding.

The Feed in Tariffs (FITs), which apply to electricity generating renewables, will be ‘refocused on the most cost-effective technologies’.

What this ‘refocusing’ means is unclear at the moment, changes will be implemented at the first tariff review.

DECC will fund a smaller Warm Front programme for the next two years, with a budget of £110 million in 2011/12 and £100 million in 2012/13.

From 2011 energy suppliers will provide greater help with the financial costs of energy bills for poor households, through Social Price Support.

The Green Deal will come into play from 2013 giving further heating support to the vulnerable, including ‘free’ insulation.

If you want to take advantage of this market-place then you need proper training. Consumers won’t be able to access RHI and FITs unless they use MCS accredited installers.

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