Turning up the heat

Solar Grants programme

The Department of Trade and Industry.

What it aims to do

Provide grants for photovoltaic solar cells for public, domestic and commercial buildings. The government hopes that encouraging the use of solar power will make it more familiar and attractive to householders and businesses, and as it becomes more common, high installation costs might fall.

How much money is available?

Grants of 40-50% of the cost of buying and installing solar electricity equipment.

What are the ground rules?

You’ll have a better chance if you plan to use solar in an original way – the Energy Saving Trust says it wants to fund “diverse applications”. Make sure you have a connection agreement with the local electricity distribution network operator in the area and installations are designed and commissioned by accredited installers.

When does fund run until?

March 2006.

When’s the deadline?

25 February, 24 June and 28 October for medium to large schemes, but applicants are advised to apply sooner rather than later.

What do people say about it?

CDS Housing’s first attempt was rejected: at £120,000, the DTI felt it was too expensive. But CDS got an academic to draft its second try, which netted it £85,000 to put solar panels on a project in Liverpool in 2003.

Inger Leach, development officer at CDS Housing, says: “The expert’s brief was more technical and reduced all the costs. There were so many issues that we didn’t think about initially, such as consultants fees and paying installers more because it was an unfamiliar technology.”

Who do you apply to?

Energy Saving Trust; phone 0800 298 3978 or log on to www.est.org.uk/solar

Energy Efficiency Commitment

Gas and electricity companies in the UK.

What it aims to do

The Department for the Environment, Food and Rural Affairs’ Energy Efficiency Commitment requires power companies to save 130 terawatt-hours from domestic energy bills between 2005 and 2008, after the success of its targets for the previous three years saved 65 twh. Suppliers do this by funding energy-saving measures such as cavity walls, loft insulation and energy-efficient boilers.

How much money is available?

No figure is attached to these savings, but the money needed is considerable. DEFRA estimates that suppliers have put £500m into the scheme up to 2005 and will put in £1bn between 2005 and 2008.

What are the ground rules?

Power companies will look for schemes that generate the greatest energy savings for minimum costs, which means an emphasis on refurbishment schemes and tried-and-tested methods. They will only fund existing projects, and will not provide 100% funding.

When does the fund end?

This phase runs until 2008, but there’s a pledge to extend it to 2011.

When’s the deadline?

No strict deadlines, but apply directly to energy companies early rather than late to be sure of getting a hearing.

What do people say about it?

Birmingham council won funding from Npower to add to a £400,000 programme of improvements it started last year. “It is enormously useful,” says Birmingham council energy officer John Burns. “It has enabled us to do significantly more properties than otherwise.”

Who do you apply to?

The energy companies directly, or regulator Ofgem; www.ofgem.gov.uk

Clear Skies

The DTI, but the fund is managed by research organisation BRE.

What it aims to do

Combat climate change by funding renewable energy such as solar thermal installations, wind turbines, small-scale hydro turbines, ground source heat pumps and wood-fuelled boiler systems.

How much money is available?

£6.85m between 2003 and 2006. Only two of 10 bidding rounds remain and the size of the grant is either 50% of installation cost or £50,000, whichever is less.

What are the ground rules?

Installers must be registered with Clear Skies and products must be listed by the fund. Because the scheme has been running for several years, it is now giving priority to under-represented places and technologies.

“Applications for solar thermal projects will need to be extremely good to secure funding,” Clear Skies warns.

When does the fund end?

March 2006.

When’s the deadline?

The two final round deadlines are 1 July and 4 November.

What do people say about it?

Bournville Village Trust received £22,000 in March last year from the fund in order to add solar panels to 16 properties on a development in Shenley. Development manager Hitesh Champaneri says: “Our bid for £35k was turned down the first time. We weren’t experts in the technology and the costs crept up. So we turned to consultants and supplier Solartwin. They drew up the second bid and this secured a grant – we made up the rest with loans.”

Who do you apply to?

Energy Saving Trust and Carbon Trust; call 0870 850 6085 or log on to www.est.org.uk/communityenergy

Community Energy Programme

Department for the Environment, Food and Rural Affairs.

What it aims to do

Fund the design and installation of community heating programmes. These save energy by taking heat from a central source and distributing it through a network of water pipes to customers – for example, every flat in a block or neighbouring buildings. Examples include combined heat and power systems, shared boilers or reused waste heat from an industrial plant.

How much money is available?

The deadline for the £50m 2002-05 scheme was 31 January 2004, but the government has just added £10m to extend the scheme to 2007/8. Development grants cover up to 50% of cost, capital grants up to 40%.

What are the ground rules?

They will only fund schemes you cannot fund through other grants or bank loans. You must demonstrate that community heating has a lower whole-life cost than alternative heating options.

When does fund run until?

2008.

When’s the deadline?

Not yet announced for the next round.

What do people say about it?

Aberdeen council got £736,000 from the fund to set up a combined heat and power network for 288 flats in 2003. It then won £660,000 and £1.3m for two more schemes. The funding made up 40% of costs, the rest came from the council. Aberdeen council’s home energy coordinator Janice Lyon says: “A lot of things about the application process weren’t clear in the early stages but now the EST provides a technical expert to work with everyone who puts in a bid.”

Who do you apply to?

BRE; phone 08702 430 930 or log on to www.clear-skies.org

Innovation Programme

Department for the Environment, Food and Rural Affairs and the Scottish Executive.

What it aims to do

Help local authorities and housing associations find innovative ways of reducing housing’s use of carbon. There is one funding stream for feasibility studies and another for implementation, which includes marketing and administration as well as energy-efficient measures.

How much money is available?

Up to £10,000 for feasibility studies, which can make up to 70% of project costs, and up to £90,000 for implementation, to cover 50% of total costs.

What are the ground rules?

Projects must involve a novel (but proven) technology, approach or partnership. Successful projects can be either energy-efficient measures or low-carbon technology.

When does fund run until?

January 2006.

When’s the deadline?

For 2005/6 the deadlines are 30 June, 31 October and 31 January 2006.

What do people say about it?

In April 2004 Carmarthenshire council, environmental charity Groundwork and a community group won £10,000 for a feasibility study into fitting sheep’s wool insulation in local houses – it’s less polluting than man-made. Dan McCallum, project manager for Awel Aman Tawe, the community group that led the project, says: “We didn’t use a consultant – it’s better for an applicant to put a bid together because it makes you think through what the project involves. You can discuss your draft bid with the Energy Saving Trust before submitting the final version.”

Who do you apply to?

Energy Saving Trust; phone 0870 241 2089 or log on to www.practicalhelp.org.uk/innovation

Concerto

The European Commission.

What it aims to do

It’s a European-wide scheme funding well-defined geographic communities to adopt “integrated energy policies” to reduce energy use and adopt renewable energy technologies. The EC hopes this will influence other communities across Europe to follow suit.

How much money is available?

The commission will announce how much money will be allocated to Concerto in June, but the last round distributed ¤5m to ¤15m per scheme. About 75-80% of bids should go on renewable and energy-efficient technologies; 20% on research; and 5% for promotion of project results.

What are the ground rules?

Applications must involve participants from three different member states working on related projects, and multiple local partners. Projects should combine innovative technologies to minimise energy consumption.

When does fund run until?

Applications taken until the end of this year.

When’s the deadline?

The next deadline will be December 2005.

What do people say about it?

Southwark council, in London, will sign a contract this summer for £1.7m to introduce renewable energy technologies on its Aylesbury estate. It bid in partnership with groups from the Netherlands and Denmark, which will all be using biogas technology in some way. Southwark’s project involves using kitchen waste to make biogas, as well as incorporating photovoltaic electricity, solar thermal power, water turbines, urban wind turbines on tower block roofs.

Nick Banks, community energy officer for Sustainable Energy Action, a not-for-profit consultant that helped write the bid, says: “We started the process by attending an information day in Brussels when they matched us up with partners from other member states. This was followed by lots of meetings with different partners and the European Union. With all the partners, the bureaucracy builds up very quickly! In hindsight, it would have been easier if we’d used consultants experienced in writing European bids as well. But there is a lot of guidance on the Manage Energy Website.

Southwark council itself and energy companies will match the funding to make about £3.5m.

Who do you apply to?

Energie Helpline UK; phone 0161 874 3636 or log on to www.managenergy.net/products/R207.htm