Solar Industry

Alex Sobel Excerpts

Tuesday 5th March 2019 Westminster Hall

[Antoinette Sandbach]

I agree with that assessment, which is why I argue that a minimum floor is needed. I am afraid that failure to extend that kind of certainty to small-scale prosumers will give the impression that the Government are more comfortable with big business than with small producer-consumers.

A fair minimum export price will ensure that consumers are not ripped off while the industry and the new regulation sort themselves out. It will also encourage suppliers to get their systems in place in readiness for market-wide, half-hourly settlement, which will help accelerate the smart energy transition. If a minimum floor price was to be informed by the system imbalance price, it would ensure that all other generators and prosumers could be treated equally, as required by article 21 of the renewable energy directive, without inhibiting innovative smart offerings.

Additionally, the commitment to a zero floor price, while welcome, is insufficient. No country in Europe asks prosumers to pay to put electricity into the grid. Likewise, in 2018 just 0.4% of daylight hours were a negative pricing period. Therefore, given the rarity of such an occasion, this is not what prosumers need. What is needed is the minimum floor price, which would have a transformative impact on the prospects for the sector, not simply a zero floor price.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I thank the hon. Lady for securing the debate and for her eloquence in introducing it. I completely agree about the need for a minimum floor price. Before I entered this place, I was the lead on this issue at Leeds City Council, and we put 2,003 solar roofs on council properties. Without being a prosumer, we could not have a FIT reduction, which would allow us to fit more roofs. This is therefore not only about individual consumers; it is about social housing and housing associations, which cannot afford not to have a repayment scheme. The minimum floor price would enable such schemes to be brought forward.

[Antoinette Sandbach]

I completely agree. I know that councils and housing associations have certainly taken advantage of the ability to install solar power, which is a great development.

The decision needs to be made quickly, to meet the tight deadlines, but it would be a shot in the arm for a sector that has faced a series of difficulties. It would also help to deliver our climate change targets. Yesterday’s Carbon Brief analysis shows that the UK’s CO₂ emissions fell in 2018 for the sixth consecutive year—something we should celebrate—and if we are to continue that record-breaking trend, we must double down on investment in renewables.