The Renewable Energy Association has called for the removal of the monthly spending cap on household grants for the installation of renewables.

Responding to the announcement in the Budget that grants for household renewables will be increased by £6 million, the REA has demanded the DTI removes the £500 000 monthly limit placed on household grants that is threatening to undermine confidence in the renewables market.

Philip Wolfe, chief executive of the Renewable Energy Association said. “There is clearly a strong appetite for homeowners to put micro-renewables to work in their homes. The new funds mentioned in the Budget should be sufficient to support demand through the next fiscal year and provide the opportunity to lift the monthly spending cap”.

The government’s Low Carbon Buildings Programme was designed to boost the installation of renewables on residential buildings. Since its launch in April 2006 demand has outstripped funding, resulting in a monthly allocation cap of £500 000. March’s fund was used up within 70 minutes of becoming available.