The negative impacts of the global economic downturn on funding decentralised energy in the UK

Over the years, a number of governmental policies have been developed in the UK that offer grants for the installation of distributed energy technologies or financial rewards per unit of electricity/heat generated from renewable and sustainable sources. The current economic climate however has meant that budget cuts have affected almost all government departments; consequently such policies have been adversely impacted. The alterations/modifications to many schemes have resulted in either a reduction in the funding available through these, changes to the eligibility of certain technologies or scales of generation or policy cancellations. The programmes affected include the Feed-In Tariff Scheme, Renewable Heat Incentive and Low Carbon Buildings Programme, among others. The adjustments for these are detailed herein, followed by the impacts these have had on the deployment rates of decentralised energy, especially microgeneration. Since costs are often one of the most significant factors constraining deployment of these technologies, reductions in funding opportunities have made these less financially-viable. Whilst there are still applications for funding under the available schemes, there has been considerably reduced levels of requests for financial support, thus future deployment rates will most likely be negatively affected. The prospects of these technologies in this context are then considered.

► Costs are often a significant barrier limiting distributed energy deployment.
► The economic downturn has reduced funding for policies aiding distributed energy.
► Installing decentralised energy technologies is now less financially-viable.
► This is now starting to negatively affect uptake rates of microgeneration.