Solar Power (Feed-in Tariff)

Tom Clarke Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

Like so many others, I am deeply concerned by the Government’s proposals for green energy and the devastating impact the cuts to feed-in tariffs could have on thousands of jobs within my constituency and across Britain, not to mention the sheer irony as the Government renege on their commitment to be the greenest Government ever.

In the past year, nearly 200 families within my council boundary have installed solar power. It is a great way for people to make their homes greener and more efficient and to protect themselves from soaring energy prices.

[Laura Sandys]

I must point out that although Opposition Members are talking about the total collapse of this industry, households will, on average, get £500 tax-free every year. That might not be £1,000, but it is an extraordinary incentive to companies to sell and households to purchase solar panel products.

--- Later in debate ---

[Mr Clarke]

I am glad that the hon. Lady made her point but, if she does not mind, I shall continue to make mine.

Skyline, a local company in my constituency, made representations to me over the weekend. In partnership with the AVC Group, Skyline has recently opened a brand-new purpose-built premises in Shawhead in Coatbridge. The managing director, Mr Robert Bell, explained to me:

“In this new venture Skyline in partnership with the AVC Group are now introducing solar energy sales, installation and advice to our existing business. A new trade counter will be available covering all aspects of aerials, satellite and renewable energy products.

Skyline and the AVC Group share the new premises. This will help consolidate our main business activities and help Skyline to secure more jobs for local people.

Our training facility will also be used by external companies seeking to train their employees in ladder training at special heights underpinned with customer care.”

The level of entrepreneurship exhibited in my constituency is, quite simply, being placed at risk by the Government. Not only are the Government proposing to cut feed-in tariffs by half so that demand for solar power is reduced by a staggering 92%, they want to do so retrospectively. That means that people with businesses who have already invested in solar power will have to abandon their schemes if they cannot afford the new rate.

I suspect that councils up and down the country will have to pull the plug on thousands of solar panel installations for social housing and community projects. We have heard evidence of that this afternoon. I wrote to the chief executive of north Lanarkshire council and a variety of housing associations in an effort to establish the extent of the Government’s cuts to solar power. It is clear that the new regulations imposed by the Government alongside the tariff reduction will make solar energy inaccessible to most people in my constituency.

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

One issue to be addressed is that of customers who find themselves halfway through a contract and who will not now get solar power. They will be betwixt and between because they will not have the opportunity of getting that solar power up and running. Is that not a major issue that the Government have not looked at in the consultation?

[Mr Clarke]

My hon. Friend makes his point very effectively, and earlier our hon. Friend the Member for North Ayrshire and Arran (Katy Clark) highlighted what he has just said.

The Financial Times today reported that the Secretary of State for Energy and Climate Change is considering

“new limits...on subsidies for households that install renewable energy...as he looks to defuse anger”

about the cuts. I only hope that his words translate into action, as the Government’s own impact assessment reveals that nine out of 10 households will be locked out of the solar energy market. How can that be justified by the so-called greenest Government ever? I will continue to oppose the devastating impact of their attack on feed-in tariffs and I shall fight for a fairer deal for the people of my constituency who are finding it very difficult to cope with rising energy prices. Yes, the solar industry does need to be regulated and, yes, reductions in tariffs do need to be made as energy becomes cheaper, but not on this scale and not so that it is essentially wiped out as an alternative for the average household and small business. It cannot be right that the Government are hitting people who are trying to do the right thing by cutting their energy bills. Their proposals for feed-in tariffs will hit families, put thousands of jobs at risk and devastate the solar industry. That is the reality of what we are debating. The Liberal Democrats once again find themselves between a rock and a hard place as the Government plough ahead with irresponsible cuts that strike at the very heart of what we are told were their core beliefs. If the coalition Government truly strive to be the greenest Government ever, they cannot seriously expect the public to stand by as the solar industry is cut down in its prime—just as the number of companies operating in solar has risen from 350 to 4,000 and as clean energy jobs have soared from 3,000 to 30,000 since 2010. That would simply be unsustainable and unacceptable, certainly to my constituents and the small companies in my constituency.