New money and other policies for the Micropower industry in Budget 2007, but a sting in the tail from the DTI






21st March 2007

In Budget 2007, the Chancellor announced the following new measures in support of the micropower industry:

  • A further £6m of funding for householder grants under the Low Carbon Buildings Programme
  • Use of the Energy Efficiency Commitment to provide long term support following the end of the grants programme
  • Stamp duty exemption on new homes under £500,000, with a £15,000 rebate for those homes above £500,000
  • Exemption from income tax on payments to householders for exported electricity and ROCs

Later in the day, the Department for Trade and Industry announced the suspension of the April round of householder grant applications whilst a review of the operation of the grants scheme takes place.

Dave Sowden, Chief Executive of the Micropower Council said:

“The extra money and other policies measures in the budget are a welcome step in the right direction, but much more is needed if the micropower industry is to fulfil its potential in helping to mitigate climate change. The financial support available to energy efficiency programmes and large scale renewables now run into £billions. By contrast, the micropower industry still only has £18m of support over a three year period. As the industry grows, we rapidly need to replace grants in their current form with enduring financial support measures that can work for the long term, and in a mass market.

“In the meantime, the extra £6m is a step forward, but the administrative arrangements for the grants scheme, in particular the monthly capping, is now unquestionably acting as a brake on the industry, rather than as an accelerator. We look forward to urgent discussions with the DTI on how best to address this situation so that the grants scheme can once again serve to aid consumers who want to play their part.”

For further information contact Jane Vaus, Head of Media and External Affairs, 0207 924 0795 or 077480 10447 or jane.vaus@micropower.co.uk