16:00 Antoinette Sandbach (Eddisbury) (Con)

The news about the scheme came on top of a business rates rise and caused a huge degree of apprehension in the sector. If that apprehension turns into something more substantial, the loss of firms on the scale suggested would be hugely damaging to the sector, the wider economy and our efforts to tackle climate change.

I congratulate my hon. Friend on securing this important debate. I note that the Renewable Energy Association has lobbied for a market-based solution, which this clearly is. However, I share some of her concerns that, without certainty on pricing, some people will be deterred from investing here in the first place, unless we can get the matter right.

A fair minimum export price will ensure that consumers are not ripped off while the industry and the new regulation sort themselves out. It will also encourage suppliers to get their systems in place in readiness for market-wide, half-hourly settlement, which will help accelerate the smart energy transition. If a minimum floor price was to be informed by the system imbalance price, it would ensure that all other generators and prosumers could be treated equally, as required by article 21 of the renewable energy directive, without inhibiting innovative smart offerings.

The decision needs to be made quickly, to meet the tight deadlines, but it would be a shot in the arm for a sector that has faced a series of difficulties. It would also help to deliver our climate change targets. Yesterday’s Carbon Brief analysis shows that the UK’s CO 2 emissions fell in 2018 for the sixth consecutive year—something we should celebrate—and if we are to continue that record-breaking trend, we must double down on investment in renewables.

The hon. Gentleman will have heard in my speech that I have been arguing for that certainty. The consultation closed four hours ago, so the Minister will not yet have had time to consider the responses, but I think that, from the debate, she will appreciate the urgency of doing so. I hope that she can offer answers to my questions and reassurance to those who have backed renewables. We are rightly proud of our position as a world leader in renewables technology and climate change, and I hope that the Government will take concrete steps to keep us in that positive position.

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16:14 The Minister for Energy and Clean Growth (Claire Perry)

I will not do the usual context setting, which is that we are doing well on the whole agenda. Renewable energy is now up to more than 32%, and emissions continue to fall rapidly. In fact, the last time our CO 2 emissions were this low was in 1888, when Queen Victoria was on the throne. That is absolutely worth celebrating.

The feed-in tariff scheme has been an effective part of our great decarbonisation journey. Since 2010, the scheme has supported more than 830,000 installations, 99% of which are solar and are currently generating about 3% of total electricity consumption. Also, a few things have changed since that time, as the hon. Member for Hornsey and Wood Green (Catherine West) will know. We have seen a dramatic fall in the cost of solar installation—up to 80% in some cases—which is to be welcomed, as it makes that more accessible to many people. We have also seen a dramatic fall in the cost of other renewable energies.

I talked about jobs and the opportunity for skilled workers to pursue careers in this sector. Not only is there ongoing growth in solar, but so many other opportunities are emerging: electric vehicles, charging infrastructure, smart appliances and battery technology are all working to decarbonise our buildings and our transport systems. The opportunity for green-collar jobs is enormous; we already have almost 400,000 people in the UK working directly in the low-carbon economy or in its supply chain, making it a bigger sector than aerospace. Those jobs exist in the here and now.

Does the Minister also recognise the potential for the energy company obligation scheme to support innovation, particularly in renewable energy? Often, the challenges to securing a return on investment that developers face can be overcome through the certainty that some sort of support mechanism can offer.

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