Feed-in-tariff scheme will exclude those who use capital grants

The Department of Energy and Climate Change is considering a ruling by the European Commission which said the FiT was ‘state aid’, and that investment through grant funding would distort competition.

Housing associations are still considering the potential impact of the ruling, but the National Housing Federation believes it will mean housing associations taking funding from grants such as the community energy saving programme and the European regional development fund will not be able to make money from FiTs. Under the scheme, homeowners and landlords are able to pay for the cost of installing the technology over a set period of time of between 10 and 25 years.

Corine Meier, NHF communications officer, said: ‘DECC’s view of the commission’s approval note is that double subsidy is not compatible. This, however, should not apply for loans and potentially not CESP since it is not a grant, although this still needs to be confirmed. Our members will be concerned about this so we are seeking clarification.’

A DECC spokesperson said the department was considering how to implement the ruling.

She said: ‘There are, however, some exceptions to this rule and we are working with Ofgem on how to clarify what these mean in practical terms. We will be making an announcement soon.’

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