Isra-Mart srl:Scotland launches home renewable energy loan scheme

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Isra-Mart srl news:

The Scottish government is launching a £500,000 interest-free loan scheme to boost the number of households installing green heat and electricity technologies amid concerns that a delay to the domestic phase of the Renewable Heat Incentive (RHI) will limit market growth.

Energy Minister Jim Mather announced on Friday that people living in Scotland will be able to apply for loans worth up to £2,000 from April 1 to help install a range of renewable energy technologies such as heat pumps, solar panels, micro-wind turbines or biomass boilers.

The loan scheme will be funded by an underspend in the Scottish energy budget for 2010/11 that resulted from fewer people than expected taking advantage of a previous renewables grant scheme as a result of delays to the UK government's Renewable Heat Incentive (RHI). The RHI was originally expected to be introduced in April this year, but it was subsequently delayed to June and then July.

Fresh concerns were raised last week that householders will be reluctant to install renewable heat technologies after the UK government said the RHI will not be available for domestic properties until October 2012.

"Low-cost, low carbon heating technologies, especially attractive in areas off the gas grid, will cut emissions and support jobs in the manufacturing and installation industry," said Mather. "Yet households will unfortunately not be eligible for the UK government's incentive mechanisms for renewable heat until 2012, so our new loans will help householders fill a gap left behind by this short-sighted move."

While non-domestic properties will be able to receive RHI payments from July this year, domestic properties will be eligible for a one-off Premium Payment to offset the upfront cost of installation.

However, the UK government has argued that its two-phase launch could deliver more green heat installations than would have been expected under the previous arrangement, which would have seen both the domestic and non-domestic tariffs launched at the same time.

The Scottish loans will be time-limited and operated on a first-come first-served basis. People interested in applying for the loans are being advised to call the Energy Saving Scotland Advice Network on 0800 512 012 or visit the Energy Saving Trust website.