Solar Rooftop Installations

Graham Stuart Excerpts

Wednesday 22nd March 2023 Westminster Hall

[The Minister for Energy Security and Net Zero (Graham Stuart)]

Let me begin by congratulating the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing this important debate and giving such an impassioned, well-informed, moderate and fair speech. I say that all the more so because I think I chided her the last time we were in this Chamber. She has continued to be a champion for rooftop solar, alongside my hon. Friend the Member for Carlisle (John Stevenson), and that is a passion that I think we all share.

Deploying commercial and domestic rooftop solar is a key priority for the Government, and it is one of the most popular and easily deployed renewable energy sources, with 1 million homes now having solar panels installed. The hon. Member for Brighton, Pavilion graciously referred to the progress that has been made, and I was delighted to see that. There were 138,000 installations last year—nearly as many as in the previous three years combined. In addition, we have around the same level of solar capacity as they do in the sunshine-radiated country of Spain, and more than that of France, so, on a comparative basis, I think we have been doing pretty well. I have rehearsed this fact many times, but it is always worth sharing that just 7% of our electricity came from renewables in 2010, before we had a Conservative-led Government, and it is now heading towards half. I am proud of that.

However, I agree with the hon. Lady that that is not enough. If we are to fulfil our net zero pledges and Government aspirations in this area, we need to go further. Solar can benefit households and businesses by allowing them to reduce electricity bills significantly and receive payment for excess electricity generated. Warehouses, distribution centres and industrial buildings with high electricity demand can also offer significant potential for solar deployment, which can rapidly pay for itself through energy bill savings. Projects can be installed quickly and relatively cheaply, and that creates new local jobs and contributes to a green recovery.

The British energy security strategy affirms that the Government will aggressively explore renewable technologies, including rooftop solar, to contribute to a net zero-compliant future. As the hon. Lady said, the report out this week, which gives us the latest update on the science, shows even more starkly how important it is that we and others move in a net zero direction. We expect a fivefold increase in solar deployment to 70 GW by 2035. That builds on the 14.5 GW capacity already deployed across large-scale ground-mounted solar and rooftop installations in this country.

The Government already support rooftop solar through the smart export guarantee introduced in 2020, which the hon. Lady referred to. It enables households to receive payment for excess electricity generated, which is then sold back to the grid. In December 2021, the Government introduced an uplift in energy efficiency standards, which came into force in June 2022, and we expect that, to comply with the uplift, most developers will choose to install solar panels on new homes or use other low-carbon technologies such as heat pumps.

On the SEG, I was pleased to see just yesterday that an energy supplier, Good Energy—it is worth naming it for doing a good job—has launched a new market-leading smart export tariff for households with solar panels. It is “Power for Good”, and it will pay 10p per kWh—significantly more than rivals. That is worth highlighting, because it is exactly the kind of competition we want to see for green consumers, and I believe it will also transfer into higher deployment.

In 2022, the Government removed VAT on solar panels and on solar panel and storage packages installed in residential accommodation in Great Britain. We are also providing fiscal incentives to encourage businesses to install rooftop solar—for example, through tax relief and business rate exemptions for installing and generating solar power. We also have the Government’s energy efficiency schemes, such as the social housing decarbonisation fund, the home upgrade grant and the energy company obligation, all of which include solar panels as an eligible measure, subject to certain requirements. That all makes rooftop solar even more accessible.

As I said, whatever our record to date, we want and need to go faster. That is why, just last month, the Government published a consultation on changes to permitted development rights, seeking to simplify planning processes for larger commercial rooftop installations, and introduced a new permitted development right for solar canopies, enabling more solar installations to benefit from the flexibilities and planning freedoms that permitted development rights offer.

We have not stopped there. As part of the consultation on the future homes and buildings standards, which will be published later this year, the Government will explore how we can continue to drive on-site renewable electricity generation, such as rooftop solar, where appropriate, in new homes and other buildings.

Notwithstanding the hon. Lady’s understandable impatience—she says that we should just get on with it—in that consultation and that process this year, we have the opportunity to take forward the arguments that she and my hon. Friend the Member for Carlisle have deployed.

[Caroline Lucas]

Unsurprisingly, the Minister sings the praises of what the Government have done so far, but he does acknowledge that it will not be enough. I wish to come back to the industry estimate that we need a further doubling of the current pace of installation for consumer-scale systems to meet the Government’s own target. Why are the Government setting their face against all the arguments that have been amassed about making solar mandatory? He has not said why he is against doing that. As well as having this debate just now, I wonder whether he would be prepared to meet me in the coming weeks so that we can get to the bottom of why the Government do not want to go down that road.

[Graham Stuart]

The hon. Lady anticipates what I was going to say, because I was about to suggest that I would be happy to meet her and discuss these matters. As she said, the Secretary of State gave a number of reasons at the Environmental Audit Committee as to why mandating might not be the right thing. The hon. Lady has addressed some of those by saying that no one is suggesting that solar should be imposed on buildings where it is not suitable. It is about defining that, making sure that it is right and talking to all the various stakeholders. That is why, if we were to choose to go down that route, we would need to go and talk to people and get their inputs as well. I am all ears, because, as the hon. Lady says, we want to drive this forward and to do so in the most appropriate way.

As I said, our record to date is pretty good comparably, but we must consider what we need to do. It is not enough to be in the lead. Looking at various assessments of policy, we may be just about the only economy that is aligned with net zero by 2050 at the moment, but to stay on track we have to move ever more ambitiously forward.

[John Stevenson]

I commend what the Government have done. They have done a huge amount over the past 10 or 12 years, which is entirely to their credit. Interestingly, genuine cross-party consensus is emerging and Members do support what is being suggested. I tabled an amendment to the Levelling-up and Regeneration Bill, which did not go to a vote, but if were to come back from the House of Lords as an amendment to the Bill, would the Minister, given that there is quite a lot of support across the House from all parties, look seriously at reconsidering the Government’s position?

[Graham Stuart]

As I said, we are under a legal obligation to meet our net zero obligations, and we have set a target of that fivefold increase by 2035. We are open to argument, but we want to get the policy right. It is not our position that mandating solar on all appropriate roofs is the right policy now, but we are very open, and I am happy to meet the hon. Lady and others to discuss this further. I look forward to developing arguments to get this right, and I am sure that that is what we all want. It is not about an obsession with mandating; we want to do that which will most increase the take-up of solar in an appropriate way.

There is more to be done to meet the opportunities that rooftop solar provides. As an example, we and Ofgem recognise that connection costs and timescales can be a barrier to the deployment of rooftop solar. Currently, rooftop solar projects are required to contribute to any distribution network reinforcement needed to accommodate the connections but Ofgem has decided that, in future, for connection applications received from 1 April, rooftop solar projects will no longer be liable for such costs where the solar capacity is less than the demand on a site. Where the solar generation exceeds site demand, projects would still contribute less than they have previously. As well as reducing connection costs, this should accelerate connection times for rooftop solar.

I understand that up-front costs of solar might prevent households from installing, which is why the Government are working to facilitate low-cost finance from retail lenders for homes and small business premises, aligning with the recommendations in the Skidmore review on net zero. I meet regularly with financial institutions that have signed up to net zero and that are looking to work with us to come up with the right methods to provide the answer to the finance question, which was one of the hon. Lady’s points.

I have very little time left, but let me look down at the questions that the hon. Lady gave me to see whether there is anything to which I can usefully respond. On skills, I entirely agree with her. I am the co-chairman of the Green Jobs Delivery Group. We have refined that, and we have met a number of times. We have reduced the membership to make sure that we are focused on action—action this day, as Churchill would put it—and that we get the data from industry so that we can carry that to the Department for Education and other colleagues to make sure we have the bootcamps, the apprenticeships, the T-levels and the rest of it to prepare people for what will be a significant pipeline of future jobs—good jobs, I hope. I liked the seatbelt analogy that the hon. Lady used, with one thing not necessarily being a barrier to another, but, of course, there is always a limited amount of capital available.

In conclusion, the Government have already taken decisive action to encourage the deployment of rooftop solar. We will strive to push even further over the coming year to make sure that rooftop solar plays an even more active part in meeting our decarbonisation targets. It helps to alleviate energy costs at this time, when energy security is at the top of the public mind, and it reduces reliance on imported energy.

I thank the hon. Lady for securing the debate, for the way that she has conducted it and for the arguments she has put forward. Working in conjunction with my hon. Friend the Member for Carlisle, I am sure we can meet and take this matter further.

Question put and agreed to.