The Solar Trade Association (STA) have expressed dismay that funds in the Low Carbon Building Programme (LCBP) programme (Phases 1 and 2) are set to expire within the next 2 months, a full 10 months ahead of the introduction of the Renewable Heat Incentive (RHI), which could lead to job losses and bankruptcies within the renewable heat industry.Currently, the Low Carbon Building Programme Parts 1 and 2 provides grants to householders and public sector buildings to encourage the uptake and installation of renewable heat technologies including Solar Thermal technologies. Originally, the schemes were due to expire in Spring 2011.

Over the last 2 years renewable technologies have witnessed phenomenal growth and the renewable heat industry can be considered a true economic success story through the current recession. This has been largely due to the previous commitment of Government to support and nurture it. However, in light of the funding cull due to happen, the clear funding gap that will emerge will stifle the renewable heat industry as homeowners and public sector buildings are no longer able to consider these technologies as a viable option economically.

The impact on jobs and the overall UK economy can only be negative, with job losses and destruction of an industry that needs to be gearing up for the introduction of the RHI. Stifling green shoot growth at this stage is also likely to have a long-term impact so that the uptake of renewable heat technologies will effectively stall, to the detriment of the RHI scheme for 2011 and beyond.