Solar Power (Feed-in Tariff)

Mel Stride Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Glyn Davies (Montgomeryshire) (Con)]

Thank you, Mr Deputy Speaker, for allowing me to contribute to an important and complex debate. The issue has a significant impact on Montgomeryshire. I know that many other Members have received communications from people who are concerned about the changes to the feed-in tariff.

The core issue is the tension between desirable objectives. On the one hand, we seek to tackle the carbon emissions that threaten our planet through climate change, and renewable energy is a significant part of that. On the other hand, we have to look after consumers. We heard earlier about the impact on the poorest people in society, because the subsidy has to be paid by consumers. That includes probably millions of people who are already suffering fuel poverty. It would be irresponsible of the Government not to consider those who might be driven into fuel poverty if they adopted a cavalier approach towards the subsidy required for the feed-in tariff as it was.

The Government remain committed to a variety of energy sources. Nuclear is clearly an important part of that. Renewables have a big part to play—tidal, possibly shale gas, offshore wind and even solar. Just because there is a change in the regime, I do not believe that solar will be put on the back burner at all.

The problem with feed-in tariffs for solar PV is that they have been far more successful than anybody ever anticipated. A number of Members have mentioned that today. Three times as many applications have gone ahead as could have reasonably been expected. In September alone there were 16,000 new applications. We saw the graph that the Secretary of State showed us earlier—it looked like a hockey stick. If action had not been taken now, the whole tariff scheme would have become completely unsustainable.

[Mel Stride (Central Devon) (Con)]

Does my hon. Friend agree that not only would the FIT scheme become untenable, but the jobs created in the short term through the gold rush to get into the marketplace would quickly evaporate? What we want is long-term, sustainable jobs, hence the need to bring the FIT down.

[Glyn Davies]

I very much agree with my hon. Friend; it is a point I made in an earlier intervention. I thought that the Secretary of State’s reference to a Catherine-wheel was a wonderful analogy. A quick burst followed by a reduction in the number of jobs in the long run as a result of not doing something about the scheme would be entirely negative. Any scheme must be sustainable, and the problem with the scheme as it stood was that it was completely unsustainable.

When I first heard about the predicted change, I was as concerned as anyone, which is why I listened to the Secretary of State’s statement very carefully. Afterwards, I understood that the Government had absolutely no choice but to go forward with the changes they have made. That is the only way the scheme can be sustainable in the long term. The issue is the timetable. I was greatly relieved that he pointed out in his contribution that there is a consultation period. If people have lost money—not making less money than they were before—we need to put those cases forward and I hope that he will take them seriously and consider their special circumstances.