David Mowat
Main Page: David Mowat (Conservative - Warrington South)
Gregory Barker
The hon. Gentleman should understand that I am not using consumers’ money—that is what it is: subsidy that comes directly from consumers and consumer bills—to send signals or to play politics. The tariff needs to reflect the genuine underlying costs of installing solar. That was totally missing from the scheme we inherited; it is now at the core of the new tariff framework. As a result of the particularly strong falls in the costs of smaller systems, we are able to set a tariff that accurately reflects, as far as we can, the return of around 6% that we think is sensible and makes it attractive for people with the right roof to install solar.
David Mowat (Warrington South) (Con)
Will the Minister confirm that even after today’s changes, solar will be the most heavily subsidised form of low-carbon electricity generation? When will it reach the same cost status as other forms of low-carbon generation, and when could it reach grid parity?
Gregory Barker
It is not the most highly subsidised form, although it is one of them. It is certainly true that, per unit of electricity generated, the domestic rate of 16.5p is still substantially more than the rate given to onshore, or indeed offshore, wind, for example. The really exciting thing is the speed at which we anticipate the costs continuing to fall. Using a crystal ball, particularly in the Chamber of the House of Commons, is never a very good idea, but I think that industry experts are increasingly saying that we can reach grid parity by the end of the decade, and many others say that it could come a lot sooner. That is why I am determined that, unlike under the previous Government, when it was treated as a cottage industry for anoraks, solar will be a major part of our energy strategy.