Oral Answers to Questions

Helen Hayes Excerpts

Tuesday 12th February 2019 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

1. What steps his Department has taken to ensure that solar power can compete on a level playing field with other energy generation technologies.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

18. What steps his Department has taken to ensure that solar power can compete on a level playing field with other energy generation technologies.

[The Minister for Energy and Clean Growth (Claire Perry)]

At a time when people think parliamentarians are engaged in some sort of slugfest, I commend the Opposition parties for perfect collaboration on this first question.

Solar is a UK success story, as I know all hon. Members will recognise. The feed-in tariff scheme, under which 80% of installations have been solar, has cost £5.9 billion to date in supporting those 830,000 installations. Prices have fallen over 80% since the introduction of the scheme, which is why we are amending it, as I set out in the smart export guarantee consultation, and I look forward to receiving the response of the right hon. Member for Carshalton and Wallington (Tom Brake).

[Claire Perry]

I completely agree that nobody should be exporting power to the grid for free, or indeed below zero as has happened in some other countries. The level at which that export tariff and the mechanism are set is a matter for consultation, and I look forward to the right hon. Gentleman’s points on that subject.

[Helen Hayes]

Industry surveys show that 30% to 40% of solar firms installing domestic systems are now contemplating closure, given the mess that the Minister’s Department has made of policies for smaller-scale renewables. The Government’s own figures show that deployment of solar PV was less than 300 MW last year, down 90% compared with 2015, and Ofgem’s targeted charging review now threatens even the few solar farms that have been built without subsidy. Will she now meet the Solar Trade Association and its colleagues as a matter of urgency to discuss this latest threat to a part of our energy market that is critical to delivering carbon reduction?

[Claire Perry]

I agree entirely with the hon. Lady about this being an important part of our energy market, which is why I am so proud that 99% of our solar installations have happened since a Conservative-led Government have been in power. I frequently meet the Solar Trade Association, which is always a pleasure. I encourage her to look beyond a regime of subsidy for delivering renewable energy, as the evidence of the numbers suggests that there are 2.3 GW of solar projects in the pipeline that already have or are awaiting planning permission and that could be delivered without subsidy. We are moving rapidly to a subsidy-free world for solar generation. [Interruption.] The hon. Lady shakes her head, but it is true. It is important that we do not equate subsidy with output, and with actually delivering the power we want.