Solar Power (Feed-in Tariff)
Debate between Chris Huhne and Russell Brown
Mr Russell Brown (Dumfries and Galloway) (Lab)
Will the Secretary of State give way?
Chris Huhne
I must make a bit more progress.
We are also considering whether more could be done to enable genuine community projects to benefit fully from FITs. We will provide more detail on that in the second consultation on the comprehensive review.
Chris Huhne
I will take some more interventions with your forgiveness, Mr Deputy Speaker, but I will try to make progress too.
A consultation is under way, and we will consider carefully all the representations that are made, including on the proposed reference date and how best to implement an energy efficiency requirement. It is not the case, for example, that large numbers of people will be excluded, because it is possible to insist on a C rating. Many people could easily be upgraded to a C rating, which would increase the market enormously. Furthermore, we could make solar panels available to anyone who is prepared to take part in the green deal when it is launched and which, of course, is cost-free to the household. We will look at that, and we will announce our final intentions early in the new year. Our proposal is that the revised tariffs should take effect from 1 April 2012.
The decision to consult on revised tariffs and the proposed reference date was not taken lightly. I am sure that Members from all parts of the House agree that increasing the share of locally generated renewables is a good thing, not just for our carbon reduction targets, but for households and communities. However, spending the best part of £1 billion of public money to support soaring profits for one part of the energy sector is not the way to build a lasting low-carbon economy. It will not deliver more renewable energy or help more households. As that public money comes directly from the purses of bill payers, including people in fuel poverty, it is not the fairest way either. Many Members will have received letters from companies offering solar PV. Many of those letters are written in defence of the industry, but they are guided by a passion, quite rightly, for clean green energy as well as a stronger bottom line.
I am as disappointed as many of my constituents that the feed-in tariff scheme was not properly set up. To paraphrase the right hon. Member for Don Valley, we would not have to cut so far or so fast if the policy had been properly costed to begin with. A little more foresight then would have gone a long way now. I have described the mistakes that were made by my predecessor in failing to take into account what was happening in the marketplace, but another mess that we had to clear up after the Labour Government left office was the business-scale scheme, which was going off like a rocket. We had to deal with that earlier this year because, under the proposals introduced by the Labour Government, it was assumed that businesses were too stupid to respond to a substantial real return and would not install any solar PV for three years. If we had not acted, half of Devon and Cornwall would have been under PV panels.
Mr Russell Brown
Will the Secretary of State say something about remote rural areas, because I have a constituent who has had solar panels installed but, because of her remote location, she has to pay a further £21,000 for an off-grid connection? There is absolutely no way in which her supplier can connect her before 12 December.
Chris Huhne
By all means, the hon. Gentleman should give us the details of exactly that sort of issue, which we will consider as part of the consultation. However, his constituent might have been better served if there was a proper energy efficiency audit of her home so that she could make substantial energy savings beforehand.
Electricity Market Reform
Debate between Chris Huhne and Russell Brown
Chris Huhne
I believe that my hon. Friend the Energy Minister is making good progress on that. We have made good progress at an official level as well, and there is no reason to anticipate any delay. I very much hope that at the end of our Department’s collective term of office, we will go down as being a happening Department that makes things happen. That is what we intend to do with CCS.
Mr Russell Brown (Dumfries and Galloway) (Lab)
The Secretary of State has mentioned the significant investment that will be required. Does he recognise that the wave and tidal sector seems somewhat unloved in the UK, because it sees its opportunity overseas? What does he feel he should do about that, and what will he do to ensure that that opportunity goes to people in this country who are prepared to invest?