12:26 Alex Cunningham (Stockton North) (Lab)

The aspiration of the industry—and, I hope, the Government—is to bring the technology to the point where renewable energy will compete with grid electricity without subsidy. To put the matter firmly on the record, I have been told that even BP concedes that electricity from solar PV will be cheaper than fossil fuels by 2020—a startling and very welcome statistic. To be clear, the Government’s decision to significantly reduce the tariff for schemes that are larger than 50 kW will cause havoc in this fledgling industry and make it less likely that community groups and schools, hospitals and churches will contemplate solar energy schemes, as they will simply be unaffordable. Schemes over 50 kW in size will see the feed-in tariff reduced by between 39% and 49%.

If money is to be limited, does the hon. Gentleman agree that it would be best to prioritise larger-scale projects that offer a better return for the taxpayer and help to achieve our goal of increasing renewable energy?

A 50 kW scheme is not a large scheme in any way, shape or form, despite what the Government would like us to think. We are talking about an area that is just the size of two tennis courts—hardly the large solar farms that the Government claim to be worried about. But do not just take my word for it. The Government should be listening to the Renewable Energy Association, which says that the industry has been “strangled at birth”, and to the Solar Trade Association, which calls the decision “a total disaster”.

The fact is that solar energy is hugely popular. A study of public attitudes to energy generation technologies that was undertaken by Cardiff university last year showed 88% support for solar PV. It had the highest level of support of all technologies. More than 70% of people agree that supporting renewable energy sources such as solar or wind is a better way of tackling climate change than nuclear power.

Back in 2008, the hon. Member for Wealden (Charles Hendry), who is now a Minister of State in the Department of Energy and Climate Change, stated when speaking about 5 MW projects:

I could go on, but sadly I do not have the time to list all the projects and examples that I have been sent information on during the last few days. The Renewable Energy Association estimated, before the fast-track review of the FIT was announced, that, nationally, 17,000 new solar jobs would be created by the end of 2011. Those jobs are now unlikely to materialise as medium and large-scale projects are axed. At a time when the number of people unemployed stands at 2.5 million, we should be doing everything that we can to encourage the creation of green jobs. The Government’s review could end up costing jobs, rather than creating them.

Just as important is the renewables target, which aims to see 15% of UK energy coming from renewable technologies by 2020 under the EU renewable energy directive. We are third from bottom of the list of European countries in meeting our renewable energy targets, and the Government’s decision will not help. Many people in the renewables industry are very angry about that decision, and confidence in the Government has been shattered thanks to the mismanagement of the fast-tracked review.

Even if we accept that such large-scale sites are a potential concern, why can the Government not restrict the use of greenfield sites and set a reasonable kilowatt capacity limit to curb industrial-scale developments, as suggested by my hon. Friend the Member for Ogmore (Huw Irranca-Davies)?At a time when oil prices are rising and volatile, and when the nuclear crisis in Japan is highlighting to all the dangers of nuclear power, I am not alone in suggesting that the Government should look at ensuring that popular, green methods of meeting our energy needs get the support that they deserve. Medium and large-scale solar PV schemes can be part of the solution to serious energy security and climate change problems, but the Government seem intent on focusing just on domestic-scale installations.

The fact is that we face a predicted energy gap in 2017, with power cuts anticipated for the first time since the 1970s. I am told that DECC had a taste of things to come last Thursday, when it was subjected to its own power cut, which meant that officials were unable to print important briefing notes for Ministers ahead of DECC questions on the Floor of the House. Perhaps that is why the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker), was so badly prepared for questions that day and used the rather shabby comparison with Germany’s tariff scheme when seeking to defend the changes his Department has announced. He said:

We were told this would be the “greenest government ever”, but I think that that will be added to their growing list of broken promises, given that energy policy is now being dictated by the Treasury. It is time for the Government to admit they have got this one very wrong, choked off many schemes at birth, turned enthusiastic potential developers away, broken promises to the industry, lost the opportunity to create thousands of jobs and set back our chances of ever meeting our renewable energy targets. I hope to get an assurance today that the Government will start listening to the industry and the many others who will doubtless respond to the consultation on feed-in tariffs, as well as to organisations such as the Norton sports complex.

In summary, I would like to pose three questions. First, how do the Government propose to restore confidence in their renewable policy, which has been severely shaken thanks to the shambolic way in which the decision on feed-in tariffs has been handled? Secondly, what is the Government’s long-term vision for solar PV? Evidence from other countries demonstrates that it has the potential to play a significant part in renewable energy provision, yet the Government’s policy is geared towards sidelining it as a purely domestic, small-scale technology. We are not being ambitious enough when it comes to solar PV. Finally, will the Government promise today to listen to the industry during the consultation, because it is very angry about this unexpected change in policy? Will they then act to ditch that ridiculous change in policy? If not, they risk alienating not only the solar sector, but the whole renewables sector.

[Source]

12:47 Mr Shailesh Vara (North West Cambridgeshire) (Con)

May I start by apologising on behalf of the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), who, for reasons I have explained to the hon. Member for Stockton North (Alex Cunningham), is unable to be here today?

Heat makes up 49% of UK greenhouse gas emissions. It has long been neglected and requires significant investment.

I understand the difficulty with pressures on budgets and the need to get the best return for the taxpayer. Surely the larger-scale schemes offer the better return to the taxpayer in terms of renewable energy produced and cost to install. Surely we should be considering those as a priority, perhaps at the cost of the domestic schemes.

The hon. Member for Gloucester (Richard Graham) mentioned sports complexes, as I did. There is one in my constituency that is considerably bigger than the Government want to support in the future. Does the hon. Gentleman not have sympathy for that sort of local sports organisation, which could make a major contribution to the community and green energy?

[Source]