Here comes the sun
The Minister for Planning and Environment has gone Green. He recently exempted the installation of solar panels from requiring permission provided the panels do not exceed 50 per cent of the plane of a sloping roof and are not installed on a Registered Building. His Department is also considering relaxing the requirements for the installation of wind turbines but, in the meantime, he has encouraged change by waiving planning fees for wind turbine applications.
While undoubtedly a step in the right direction, Jersey is still lagging behind the UK in offering incentives to homeowners and businesses seeking to improve their energy efficiency. The UK is one of over 160 countries who are signatories to the Kyoto Protocol, an agreement made under the UN Framework Convention on Climate Change. Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases.
Among the initiatives the UK Government has introduced are energy performance certificates, that tell prospective buyers about the energy performance of your home and which have been a mandatory part of house sales since mid-2006. Similarly, energy labels are now in place in all UK supermarkets, banks and shopping centres.
Grants are also given to homeowners to help with the cost of improving the efficiency of their homes. The UK has also brought in the climate change levy, whereby businesses pay an additional tax on their energy use, with offsetting cuts in employers’ National Insurance Contributions and support for energy efficiency schemes and renewable sources of energy. Companies can also sign up to climate change agreements which allow energy intensive business users to receive an 80 per cent discount on the climate change levy, in return for meeting energy efficiency or carbon saving targets.
Additionally, the UK has lowered VAT from 17.5 per cent to five per cent on some energy saving materials (insulation and heating controls) and is funding micro-generation grant schemes. These grants schemes include the low carbon building programme which provides grants towards installing micro-generation technologies, such as solar photovoltaics and wind turbines. Grants are also available for solar thermal hot water and ground source heat pumps.
The Carbon Trust also provides interest-free energy efficiency loans, which allow eligible businesses to replace or upgrade their existing equipment with a more energy efficient version. Regional variations apply but small or medium sized businesses that have been trading for at least 12 months can borrow up to £100,000 on an unsecured basis, repayable over up to four years.
In 2006, the Labour Government published its Energy Review, which reaffirmed its existing commitment to eliminate ’energy poverty’ (defined as households paying over ten per cent of its disposable income on energy to maintain a healthy living). Under its proposals, families in receipt of defined benefits, such as income support, may be eligible to receive 100 per cent grants for insulation, lighting or more efficient heating systems.
All of these incentives are positive. I am glad Jersey is moving in the same direction. Every little helps.
Advocate James Lawrence,
Property partner
October 2007