People hoping to get their photovoltaic system up and running over the next couple of weeks will have to wait, after the Resources Authority yesterday suspended its subsidy scheme for the second time this year.

The latest indefinite suspension comes in the wake of police investigations into allegations of fraud.

The scheme, which subsidised half the cost of a solar panel installation up to €3,000, was meant to kick off by the end of this month after the first scheme was suspended earlier this year over irregularities in the application forms presented by some suppliers.

"Police investigations were initiated only recently after the Malta Resources Authority received a number of allegations from suppliers," a Resources Ministry spokesman said when asked why applicants had only just been informed about the new suspension.

He did not say what the allegations were but industry sources told The Times that some retailers were inflating the quoted price of cheaper systems to €6,000 so the customer would be entitled to the full €3,000 grant but would in reality have to pay less than half the remaining sum.

This gave abusive suppliers a competitive advantage over others who quoted the correct price. It is understood that the police instructed the authority not to go ahead with the scheme until their investigation was over.

"The scheme will be re-opened without any delays whatsoever, once the investigations are concluded," the ministry spokesman said.

When the scheme was suspended in February due to irregularities, more than 400 people had applied. The scheme was meant to re-open towards the end of June after some amendments were implemented.

"The changes related to administrative procedures included changes in application form layout among others," the ministry said.

The suspension has created problems for suppliers who stocked photovoltaic systems after clients had received approval for their grant from the authority.

A leading supplier, who spoke on condition of anonymity, said the suspension would disrupt the scheduling of work and hoped it would not last long.

"It is an unpleasant situation but it is better if abusers are weeded out," he said. The supplier called on the government to give a deadline by when it intended to open the scheme because clients, who had already paid a deposit, might get cold feet not knowing when their solar system would be delivered.

"If clients pull out, suppliers will be left with a stock of photovoltaic panels and matters will be complicated further," he said.