The €5.5 million, EU-funded Solar Energy Scheme, which was meant to help businesses invest in photovoltaic panels, has been cancelled due to “technical problems” in the supplier selection process, Malta Enterprise said yesterday.

Without elaborating, it said the decision was taken following consultations with the European Regional Development Fund, the findings of an Appeals Committee and after a thorough consideration of all the avail-able options.

No more details were given.

However, these funds will not be lost, as the Government is already identifying possible alternative uses, according to a statement issued later by the European Affairs Ministry.

Earlier this month, this newspaper had revealed that the qualification criteria set for suppliers by Malta Enterprise were so steep that only five were selected, leaving more than 30 others dissatisfied.

The Government is already identifying possible alternative uses for the EU funds

Some of the disqualified suppliers complained that only companies with an annual turnover of €200,000 or that had previously supplied large installations were eligible.

Concerns were also raised about the potential of a cartel being formed between the five selected companies.

However, suppliers who submitted formal complaints were told that the project had to be completed within a short period of time as otherwise the funds would be lost.

The chosen companies were Alternative Technologies Ltd, Bajada New Energy Ltd, CD Power Solutions Ltd, Primesolar Srl and Solar Solutions Ltd.

Between them, they had won the right to supply €11 million worth of equipment to businesses that invested in solar power to cover part of their energy expenses.

Under the scheme, enterprises were eligible to receive up to €120,000 on PV installations with a minimum kilo Watt peak (kWp) of 20kW.

The scheme had been previously suspended in 2012, following a police investigation into irregularities.