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Burning Issue: How to make commercial sense of the MCS

The Microgeneration Certification Scheme was designed to protect homeowners by guaranteeing certified renewable products and installers meet robust standards. But MCS is becoming important for commercial buildings. Richard Evans, director of sales at Buderus, talks us through the scheme.
Burning Issue: How to make commercial sense of the MCS
Originally conceived in 2006, BRE Global was appointed by the Department for Business, Enterprise and Regulatory Reform, (previously the Department of Trade and Industry and now the Department of Energy and Climate Change) on a two-year contract to develop the MCS scheme to ensure installers and renewable products lived up to an approved government standard.

A good idea in principle but when you consider no-less than three different departments have looked after this scheme during a period of two years you'd be forgiven for questioning whether it is fit for purpose.

Its main aim is to raise awareness of renewable technologies and the role they can play in reducing carbon emissions and energy bills. It addresses the barriers of entry into the marketplace for renewables and generates consumer confidence in the effectiveness of these products and services, both from a technological and cost perspective.

It has been well-documented that MCS has had its problems, with complicated applications and significant financial outlay for installers to join proving to be stumbling blocks. Frustratingly this has resulted in a slow uptake and has put off more installers from diversifying into renewables than it has encouraged.

On a more positive note, the scheme is now being operated by Gemserv, improvements have been made and costs to the installer reduced. Now take up is growing and confidence in renewables is increasing. So it is important the industry pulls together. Renewables are the future and we should be doing what we can to encourage take up.

Buderus plans a number of developments during the next 12 to 18 months to increase its renewable portfolio. These will allow it to offer a wide range of energy efficient solutions to clients and with better financial support from the government in place we can start to drive the renewables market forward.

The reason MCS has become relevant for the commercial heating sector is because of its partnership with the Low Carbon Buildings Programme (LCBP). Until recently the LCBP has offered only homeowners' grants for having a renewable product installed, providing the installer and product are MCS registered. But since March this year, financial incentives have been made available for public sector buildings, making MCS relevant to commercial installers and manufacturers.

Schools, hospitals, local authorities and charitable organisations are all able to access government grants to assist with the cost of installing renewable technologies. This represents an excellent opportunity for ACS-accredited installers and commercial heating manufacturers to encourage the take up of renewables in these buildings and it creates a potential stepping stone to a scheme with a wider scope to cover commercial properties.

It's clear government's energy targets are tough to meet. With CO2 reduction targets of 80 per cent to be achieved by 2050, and the UK requiring a renewable take up of 15 per cent by 2020, we know we have a lot of work to do.

At present the number of renewables installed in the UK each year is less than 4 per cent, and we are well behind much of Western Europe.

In fact, we are so far behind that the 15 per cent figure is a reduced target, other nations must deliver 20 per cent in the next decade but, because of our poor performance, our target is significantly lower and we will probably struggle to meet this reduced target.

Phase 2 of the LCBP coupled with initiatives like the Carbon Reduction Commitment (CRC) are steps in the right direction but we must do more to incentivise investors and make it easier for contractors to opt for renewables when upgrading heating systems in existing commercial buildings.
8 July 2010

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