Microgeneration for the masses

Tuesday 17 October 2006 11:26
Department for Environment, Food And Rural Affairs (National)

Microgeneration for the masses: Pearson challenges energy companies to offer flexible finance schemes

Energy companies, high street banks and consumer finance companies were challenged today (Tues) by Climate Change and Environment Minister Ian Pearson to develop low-cost finance schemes to help boost take-up of household microgeneration.

Such a scheme would complement measures outlined in the Government's Microgeneration Strategy, published by the Department of Trade and Industry, aimed at stimulating widespread take-up of these technologies.

Mr Pearson said it should be as easy to get finance for a wind turbine as a sofa.

"The Government's recent microgeneration strategy, published by the DTI, highlighted the high up-front cost as a barrier to greater take-up of household wind turbines and solar panels.

"Everywhere you look these days, there are adverts for sofas, electric goods and kitchens - all offering interest free credit or easy long-term loans. Yet, there are no such offers for microgeneration.

"I passionately believe that it should be as easy to get finance for a wind turbine as it is for a sofa. This could be through credit or loans, or it could be an energy service contract with the cost rolled up with a customer's energy bills. Green mortgages or long-term leasing are other options that could be taken up.

"My challenge today to the high street banks and consumer finance companies, energy suppliers and others is to work with the microgeneration companies to come up with new, innovative offerings."

Speaking at the UK Business Council for Sustainable Energy Conference in London, Mr Pearson said:

"As well as being a very visible, iconic measure, microgeneration can play a key role both to reduce carbon emissions and as a tool to engage people and help them become energy-aware consumers."

He added that microgeneration was just one example of the three-pronged approach the Government was taking to reducing carbon emissions, which incudes:

* Taking the carbon out of the energy supply system as we move towards zero and low-carbon energy supply and distributed generation.

* Using energy more efficiently through more efficient, better designed buildings, vehicles and appliances, and

* Reducing the demand for energy services - by changing behaviour and avoiding waste.

Mr Pearson highlighted the Government's commitment in the Energy Review to improve energy standards for products and buildings and its desire to remove the worst products from the market.

Commenting on the progress of the Energy Efficiency Commitment, which has proved to be one of the most successful instruments in reducing carbon emissions, Mr Pearson said he was delighted to hear of Scottish and Southern Energy's announcement that they will be committing to insulate an additional 50,000 homes by the end of 2007.

"Ensuring a smooth transition for the next phase of the Energy Efficiency Commitment is absolutely vital if the energy efficiency industry is to be ready to deliver even higher levels of activity in 2008.

"I am delighted to hear that SSE will be committing to tackle an additional 50,000 homes, with two thirds of those in priority homes, by the end of 2007. This is exactly the sort of contribution we are looking for from the industry, " he added.

Notes to Editors:

1 The Government's Microgeneration Strategy was launched by Energy Minister Malcolm Wicks at the Micropower Conference at the QE2 Centre, London on 29 March, 2006. Microgeneration is defined as the small-scale production of heat and/or electricity from a low carbon source. The suite of technologies includes solar (PV to provide electricity and thermal to provide hot water), micro-wind (including the new rooftop mounted turbines), micro-hydro, heat pumps, biomass, micro combined heat and power and small-scale fuel cells.

2 The Government provided an additional £50m announced in the Budget 06, giving the Low Carbon Buildings Programme £80m in total over a three year period. A study commissioned by the DTI, from the Energy Saving Trust, suggested that by 2050, microgeneration could provide 30-40 per cent of the UK's electricity needs and help to reduce household carbon emissions by 15 per cent per annum. In 2004, there were approximately 82,000 microgeneration installations in the UK. More information is available at
http://www.dti.gov.uk/energy/sources/renewables/policy/government-renewable-energy-policy/page14869.html

3 Energy efficiency is an integral element of the UK's strong domestic programme to tackle climate change. Under the Energy Efficiency Commitment (EEC), electricity and gas suppliers are required to meet targets for the promotion of improvements in energy efficiency in the household sector.

4 The EEC has been very successful. Under EEC1 (2002-5), suppliers met their targets, delivering 0.4MtC (million tonnes of carbon). EEC1 stimulated about £600m investment in energy efficiency and delivered net benefits to householders in excess of £3 billion. The current EEC2 (2005- Cool

requires around double the level of activity of EEC1.

5 In the UK Climate Change Programme, the Government set out ambitious levels for the third phase of the EEC (2008-2011) - to deliver about 0.9 - 1.2MtC by 2010 - a 50 to 100 per cent increase on the scale of the current EEC.

6 The Government is considering a range of issues to support the development of the next phase of the EEC and the specific target. An initial consultation was launched this Summer, with a view to a statutory consultation in Spring 2007.

7 Currently, at least 50 per cent of measures must be directed at a "priority group" of low-income households who make up 35 per cent of all households. More information on EEC is available at http://www.defra.gov.uk/environment/energy/eec/index.htm

8 Mr Pearson was speaking at the UK British Council for Sustainable Energy conference in London today. A copy of his speech will be available on the Defra website - http://www.defra.gov.uk shortly

AnneandMike

Re: Microgeneration for the masses

Behemoth wrote:

* Taking the carbon out of the energy supply system as we move towards zero and low-carbon energy supply and distributed generation.

* Using energy more efficiently through more efficient, better designed buildings, vehicles and appliances, and

* Reducing the demand for energy services - by changing behaviour and avoiding waste.

Listen to the words and VOTE for these people!! What a lot of hot air! Under this government (as others), carbon emissions continue to rise. It is only the 'dash for gas' moving away from coal generation that has kept a lid on emissions and that will not happen again. We need mandatory reduction targets and a government with the b**ls to act on such a policy. It isn't there yet.

boisdevie1

When you hear what effects that air travel is having on CO2 emissions you realise that this is just a load of poop. This govt (and I dont think the tories either) are prepared to grasp the nettle and do something serious because too many people think that the odd weekend flying off to Barcelona/Budapest etc is their 'right'.

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