Oral Answers to Questions

Graham Allen Excerpts

Thursday 5th February 2015 Commons Chamber

[Matthew Hancock]

If I may say so, that was a rather better question than the previous one. This is an important issue. We are working with our colleagues in Northern Ireland at an official level and throughout the Government to deliver on the commitments made, and it is important that we continue to do so.

[Mr Graham Allen (Nottingham North) (Lab)]

4. What assessment he has made of the effect of recent changes to the incentive scheme for installing solar power panels on businesses that install those panels.

[The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)]

Solar PV has been a major success story, with the most recent deployment figures showing a total of 5 GW of capacity across the UK, 99% of which has been put in place under this Government. The solar strategy, published last spring, set out a range of actions that will allow more businesses to enjoy reduced energy bills through installing solar PV. The changes we have made, financial and non-financial, for solar PV will make it an affordable part of our low-carbon energy mix, and we anticipate that splitting the feed-in tariff will promote rooftop solar, particularly at industrial premises.

[Mr Allen]

Unfortunately, I do not have many small businesses in my constituency, so it is a tragedy when I lose one; losing MG Renewables, which had invested in a fleet of vehicles, was a matter of great regret. Will the Minister reassure the House that we will have a steady and clear set of incentives, rather than this constant changing, which makes it particularly difficult for small businesses to plan and maintain their viability? Will she talk to the Treasury and the Department for Business, Innovation and Skills to ensure that?

[Amber Rudd]

Small businesses are essential to economic growth, and we are determined to support them. I understand the hon. Gentleman’s point, which is about the support for solar through our feed-in tariffs. Owing to the reducing capital costs of solar, we have reduced the support. It is essential that we strike the right balance between using taxpayers’ money and supporting businesses, but I appreciate his point and will bear it in mind.