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Allowable Solutions Plan set to backfire on Capital!

Boris Johnson expressed concern last week over the well publicised Allowable Solutions plans under the Government’s commitment to Zero Carbon Homes by 2016. The Mayor of London urged the government to ensure that any energy projects planned alongside developments in London  be kept in London rather than built more cheaply elsewhere.

As the government is committed to Zero Carbon Homes from 2016, housebuilders will be able to meet some of their zero carbon obligations through the use of offsite renewables or retrofit projects under planned “Allowable Solutions”.

However, recently the Department of Communities and Local Government (DCLG) proposed that developers would be able to locate their allowable solution projects anywhere in the UK to try to alleviate some of the financial burden of the policy,particluarly on those developments in London where costs are significantly higher than elsewhere in the UK.

In response to the consultation document Next Steps to Zero Carbon Homes : Allowable Solutions the Mayor of London responded by stating that this system would result in London “subsidising the rest of the UK” because it would be “out-competed on price”.

JB Comment – Johnsons’ comments do bare weight although many would argue that such a subsidy to other regions, whilst clearly not benefiting London, would help redistribute some of the massive economic and broad social advantages enjoyed by the capital.

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