Solar Power and Feed-in Tariffs Debate

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Department: HM Treasury

Solar Power and Feed-in Tariffs

Richard Graham Excerpts
Tuesday 29th March 2011

(13 years, 1 month ago)

Westminster Hall
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Shailesh Vara Portrait Mr Vara
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Clearly, many will argue that the domestic market has a priority; others will argue in the same way as my hon. Friend. A decision has been taken, though clearly this will be reviewed regularly. It is not definitive, it is an ongoing matter.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
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Will my hon. Friend consider asking Ministers whether they would contemplate allowing the same feed-in tariffs to community buildings, including sports clubs and other local organisations, rather than large-scale commercial manufacturing of solar power?

Shailesh Vara Portrait Mr Vara
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I am more than happy to pass that on to the relevant Minister. I hope colleagues will forgive me: I have about eight minutes and I wish to make progress.

The coalition is determined to drive a step change in ambition for the deployment of decentralised renewables and clean microgeneration technologies. As part of that, we are fully committed to feed-in tariffs for small-scale, low-carbon electricity generation. To meet our 2020 and longer-term targets we need to make the best use of all technologies that deliver renewables. Solar photovoltaic is part of the total picture. We expect that it will deliver a relatively small proportion of the overall total, but it can make a real contribution, especially at the household and community scale.

Solar PV has the advantage of being the only renewable technology that can be delivered easily at scale in the domestic context. It can be deployed quickly and does not have the disadvantages of noise and other local impacts, and at the small end of the scale does not need complex and expensive grid connections. Through permitted development rights, microgen-scale solar PV does not need planning permission. It can provide a range of benefits to the wider green agenda by engaging households and communities in the energy that they consume, and taking action to reduce their carbon footprint. Solar PV can work hand in hand with other initiatives, including the green deal.

It is important to remember that solar PV can be deployed on a range of scales. That can be small systems of 2.5 kW on domestic roofs that will provide a typical household with about half its electricity needs, through community scale schemes on school and hospital roofs of 10s of kW, to industrial scale schemes of several megawatts in fields or on warehouse or factory roofs. We need to question whether all those types of installation are appropriate for bill payers’ support at the current level of technological development. That is why we have launched the comprehensive and fast-track reviews of the FITs scheme.