• REA urges government to reconsider clawing back £1 billion in unspent Green Homes Grant funding
• Says Covid and poor administration, not a lack of demand, to blame for slow take up
• Long-term plan around heat decarbonisation imperative

The Association for Renewable Energy and Clean Technology (REA) have urged the Government to reconsider clawing back £1 billion from the Green Homes Grant.

Less than 5% of the original budget has been spent so far, with the Government saying that unspent money would not be carried over into next year. However, the REA say that such a move would impact businesses and consumers in the short-term, as well as undermining confidence in future initiatives.

Long-term strategies around heat decarbonisation are also imperative, otherwise a policy gap will quickly emerge with the non-domestic RHI coming to an end. This would put the Government’s net zero ambitions in serious jeopardy.

Dr Nina Skorupska CBE, Chief Executive of the Association for Renewable Energy and Clean Technology (REA), said:

“The sudden removal of funding for the Green Homes Grant would not only severely impact consumers and businesses in the short term, but it would also damage confidence in future announcements. The problem with the scheme hasn’t been a lack of demand, but a combination of Covid and an administrative system which has been beset with problems.

“Far from clawing this money back, the Government should be looking to carry over this commitment into the next financial year, fix the issues around delivery and expand the scheme to include energy storage and a broader range of on-site renewables.

“The Government need to urgently make clear their intentions around heat decarbonisation – aside from domestic installations, come the end of March there will a huge policy gap opening up as the non-domestic RHI comes to an end with no comparative policy in place to help businesses to decarbonise their heat.

“A significant step change is needed by government if it is going to be able to get near the level of installations required to meet decarbonisation targets in line with their net zero ambitions. They are due to publish their Heat and Buildings Strategy this year – this must include long-term, stable and transparent policy that will see renewable heat systems installed and a clear trajectory for delivering decarbonisation targets.”

—ENDS—

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About the Association for Renewable Energy and Clean Technology (REA)
The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.

For more information, visit: www.r-e-a.net