Chamber and committees

Over the last two years, the number of businesses based in Scotland registered to install solar water heating under the Microgeneration Certification Scheme has increased from 46 in January 2010 to 112 as of July 2012. A further 187 UK companies operate in Scotland.

This demonstrates the growth in the market and the Scottish Government’s is supporting continued development, as set out in the Microgeneration Strategy for Scotland published on 22 June 2012. Alongside the Strategy, we announced an increase of £5 million in our Home Renewables Loans scheme targetted at renewable heat, with an increase in the loans available for heat technologies, such as solar water heating, to £10,000. Loans are also available to small and medium sized business to help them with the capital costs of technologies such as solar water heating.

Our Small Business Loan Scheme, managed by the Energy Saving Trust (EST), provides loans to businesses to install energy efficiency and renewables measures. Since the scheme was introduced in late 2008, 26 loans totalling £256,311 have been paid for solar water heating in business premises.

The Scottish Government also sponsors EST to deliver the Small Business Advice service in Scotland, providing advice and recommendations on energy efficiency and renewables measures. A total of 4,347 businesses have received advice since 2006-07 and the most recent evaluation indicates growing interest in renewables, with two thirds of businesses advised by EST receiving recommendations on renewables in 2010-11, up from 38% in 2008-09.

The Scottish Government has not assessed the potential benefits to manufacturers of solar water heating of increased demand at these rates. The Scottish Government supports continued growth of the market for solar water heating and welcomes the development of manufacturing base in Scotland, with AES Solar in Forres and Sustainable Technologies in Nairn. A total of 22 manufacturers of solar hot water systems are registered in the UK under the Microgeneration Certification Scheme and more across Europe under Solar Keymark. We recognise that development of the market both in Scotland and globally will benefit manufacturers and will continue to work with industry as we take forward the recommendations from the Microgeneration Strategy for Scotland to ensure that we maximise the benefits to Scottish businesses and consumers.

The most appropriate and cost effective way of reducing emissions from buildings depends on a number of factors, as set out in our planning and building standards systems. Scottish Planning Policy (paragraph 44) places energy generation within a holistic framework and states “The use of energy efficient, microgenerating and decentralised renewable energy systems will be components in the move towards reducing emissions, but energy efficient design of buildings will make a significant contribution to reducing emissions. Location, siting, orientation, design, materials and insulation are important factors in the energy efficiency of buildings.”

The Scottish Government has also set challenging minimum levels for carbon dioxide and energy performance in Scottish building regulations for new buildings. The approach emphasises the importance of improving the building fabric as well as considering low and zero carbon generating technologies to achieve the standards in the most appropriate and cost effective manner possible. Although the use of such technologies is not a requirement, current emissions targets for new building mean that such technologies are becoming more common. We consider that this approach is the best way to support growth of the market for technologies such as solar water heating, ensuring solutions are best designed to meet individual consumer’s needs.

There has been a significant increase in businesses based in Scotland registered to install solar water heating under the Microgeneration Certification Scheme, from 46 in January 2010 to 112 as of July 2012. We therefore do not consider accreditation is an impediment to companies becoming installers. The Scottish Government wishes to increase uptake of microgeneration across Scotland and we will continue to work with industry, in particular through the Microgeneration Task Group, to take forward recommendations in the Microgeneration Strategy for Scotland.

The Scottish Government supports standards for microgeneration technologies, including solar hot water systems. There are many benefits to standardisation, and solar hot water systems must be registered under the Microgeneration Certification Scheme or Solar Keymark to be eligible for funding through Scottish Government and UK Government schemes. In order to be certified under these schemes they must meet European Standards for solar collectors.

http://www.microgenerationcertification.org/

http://www.solarkeymark.org/

We are not aware of analysis undertaken on the specific impact of standardisation on consumer costs, as costs are affected by a range of factors. Standardisation has the potential to contribute to reduced costs by increasing consumer confidence, growing the market and hence lowering costs through economies of scale. Certification also ensures that consumers can be confident that their equipment will meet minimum standards for efficiency. However, standards may also increase costs in order for manufacturers to meet the requirements of the standards.

In addition, wider market forces may well have a bigger impact on costs, for example the global cost of copper has risen over the past few years which impacts on the costs of solar hot water systems. Delays to the domestic Renewable Heat Incentive have also constrained demand for heat technologies, but once introduced this is likely to have a bigger impact on market growth than standards alone.

The latest Annual Population Survey for April 2011 to March 2012 estimates that 88% of 16 year olds and 79% of 17 year olds are enrolled in any education or are currently doing a recognised apprenticeship.

Source: Annual Population Survey, Office for National Statistics.

Circular 6/2011: Compulsory Purchase Orders set out that in deciding whether to confirm a compulsory purchase order Scottish Ministers will weigh up the public benefit in the public body's proposals against the interests of the people affected. The public body should properly assess the public benefit in its proposals and the impact on the people affected. The circular suggests some issues the public body may wish to consider when assessing the public interest. The statement of reasons which accompanies the submission to ministers of the compulsory purchase order for consideration should set out the public benefit.

Where a compulsory purchase order has been confirmed by ministers, there is a six week period, beginning from the date that the public body first publishes notice of the confirmation of the order, in which the validity of the order can be challenged in the Court of Session. The challenge may only be made on the grounds of the lawfulness, rather than the merits, of the decision.

The creation, improvement, upgrading or alteration of forestry roads is principally controlled by the Environmental Impact Assessment (Forestry) (Scotland) Regulations 1999.

In “sensitive areas” any person wishing to undertake any work of this nature should apply to Forestry Commission Scotland (FCS) for a determination as to whether the project is likely to have a significant impact on the environment and therefore whether it requires regulatory consent, i.e. whether a full environmental impact assessment must be undertaken. “Sensitive areas” are defined as:

(a) National Nature Reserves or Sites of Special Scientific Interest;

(b) National Parks;

(c) World Heritage Sites;

(d) Scheduled Ancient Monuments;

(e) Areas of Outstanding National Beauty;

(f) Natural Heritage of National Scenic Areas;

(g) A site designated as a Special Area of Conservation (SAC) or identified as a candidate SAC, and

(h) A site classified or proposed as a Special Protection Area.

Outwith sensitive areas, projects where the area involved covers less than one hectare do not require a determination from FCS as to whether regulatory consent is required. All projects covering an area of one hectare or more require a determination of whether consent is required from FCS.

However, in the vast majority of cases work of this nature will also form part of a new woodland creation project, or a long-term management plan/forest design plan, which will either require the approval of FCS before grant aid can be obtained, or be linked to an application for a felling licence, which requires the consent of FCS.