Fight continues for Energy Bill amendment

Energy and construction firms have pledged to continue fighting for a scheme that would create a multi-billion pound domestic power-generation market.

Plans to reward homeowners for generating their own energy failed in parliament last week.

The Home Builders Federation (HBF) claimed the introduction of a German-style feed-in tariff could make zero carbon housing easier to achieve. The tariff would pay individual power generators a fixed price for every green unit they export to the national grid.

HBF director of external affairs John Slaughter said: "The benefit will be more interest from energy companies to invest in renewables and make them less risky for those involved in choosing that route. Builders are bearing the brunt and finding it not so easy to find partners to work with because people do not want to invest in the area. Without partners, the costs get added to new housing.

"It is helpful for the zero carbon goal because it means sensible local solutions for renewable energy supply become commercially more attractive," he said.

The scheme was proposed as an amendment to the Energy Bill, but was defeated in the House of Commons. MP Alan Simpson, who proposed the amendment, told parliament the feed-in tariff sparked a £25bn industry in Germany, creating 250,000 jobs in renewable energy.

He told the Commons: "The momentum gains pace, driving down the unit cost of solar installations and driving up the proportion of energy that renewable sources provide."

National House-Building Council research and innovation manager Neil Smith said builders were experimenting with new technology but were not confident with prices or consumer demand.

Supporters of the amendment expect it to be reintroduced in Parliament and be back before the Commons later this month.