17:23 Albert Owen (Ynys Môn) (Lab)

Since entering the House, I have been a consistent supporter of nuclear energy, renewable energy and energy efficiency as a package. I see no contradiction in that whatsoever. It will help consumers in the short term and the environment in the long term, which is what proper policy is about.

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17:37 Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)

On 2 November, my constituents learned that the Department of Energy and Climate Change had changed the date from 31 March 2012 to 8 December 2011 for reducing the feed-in tariff rate for solar panels fitted to domestic properties from 43%. At the 43% FIT level, they calculated that they could borrow £12,000 to install solar panels and that they would break even on the loan repayments. The week before, they signed a contract for solar panels to be installed before 31 March 2012 and paid just over £7,000 as a deposit. At that time, there was no indication that DECC was about to make a sudden change to the date for introducing the revised FIT rate.

My constituents believe that this is, by default, another way for DECC to ensure that fewer people are able to receive the previously agreed tariff, and the Secretary of State openly admitted that in his speech. They rightly believe that this looks like another example of people entering into contracts with this Government only to have the goalposts moved without due consideration or proper consultation and find that they are left to take the financial hit. They were already in the position that 60% of the costs had been paid to the contractor and they could not reasonably cancel the contract. Having fast-tracked the installation process, they are now faced with another barrier to registration whereby, through the Government’s action, they will be tied into a green energy contract rather than breaking even. This leaves them with making a significant loss for the next 25 years, through no fault of their own. They tried to do the right thing; perhaps the Government should now do the right thing and change the deadline.

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17:42 Dan Rogerson (North Cornwall) (LD)

The introduction of the feed-in tariff came about after a long campaign by the parties now in government and by many people out in the community who had seen the gains that had been made in Germany. We keep coming back to the German example. I am sure that any German people watching this debate will feel very smug that much of it is about what they have achieved. I was a member of the Environment and Climate Change Committee during the previous Parliament, and we went over there to look at what had been achieved in Baden-Württemburg and Freiburg, as well as in Stuttgart, where the panels were being produced.

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17:55 Mr Peter Lilley (Hitchin and Harpenden) (Con)

I am grateful to my right hon. Friend for the background information, which is especially useful for us new Members, who were not here when the policy was discussed previously. He is highlighting an extremely important point. The Government have only so much money to invest in new sustainable energy. It is all the more important to ensure that it is spent wisely, otherwise there will be no opportunity to bring other technologies to market.

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18:03 Phil Wilson (Sedgefield) (Lab)

The change will cost a lot of jobs in this sector, in which up to 30,000 people work. It will remove the opportunity for nine out of 10 households to take advantage of the feed-in tariff to reduce their energy bills at a time of rising fuel poverty. The 12 December deadline is causing planned solar projects nationwide to be shelved and millions of pounds of investment to be lost. A survey by the Renewable Energy Association reveals that 57% of companies now anticipate laying off at least half of their staff, while a third believe that their companies will go under.

Let us take the example of Mr Wayne Richardson, one of my constituents who runs Revolution Power—a small renewable energy company employing 17 people. It has been on the go for about six years. Revolution Power fits photovoltaic units and provides ground and air heat pumps. Mr Richardson tells me that he might have to lay off a third of his staff. He is a young man with a young family; he is an entrepreneur and a trier. We need more Wayne Richardsons in the north-east to promote and protect jobs in the private sector.

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18:21 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 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.

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”

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18:28 Sarah Newton (Truro and Falmouth) (Con)

I am concerned that we should not use up all our resources, as we need to support emerging technologies. It is vital that we do not spend all the money on FITs for PVs. The Government have introduced a wide range of really good policies that support the emergence of new technologies in my constituency. For example, recent investment by the regional growth fund in deep geothermal engineering will leverage in £42 million of private sector investment, alongside nearly £1.5 million from the Department of Energy and Climate Change to create the first deep geothermal power station in my constituency.

I very much welcome the fact that, this winter, the renewable heat incentive will be made available to commercial businesses and a limited number of consumers installing ground heat pumps and other sources of renewable heat. I hope that, through that work, lessons will be learned so that we can end the debacle that we inherited with FITs. The renewable heat incentive will play an enormously important role in our energy security and in making sure that people switch to sustainable, green energy sources, so I hope that it does its job and works well.

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18:31 Katy Clark (North Ayrshire and Arran) (Lab)

The Government are rushing to introduce their proposal, which will cause havoc for all the reasons outlined by many Opposition Members and, indeed, by some Government Members, because they chose to put a ceiling on the solar FIT budget. That was not the position under the previous Government. Will Ministers explain whether they have looked at surpluses in other renewable energy budgets, and ask the Treasury if they can use those budgets to ensure that more money is available for solar, given the runaway success of the scheme?

My hon. Friend puts a powerful case. Perhaps Government Members should read the Opposition motion before them. There is acceptance on both sides of the House and within the renewable energy industry, both among consumers and among those who manufacture and install the equipment, that a review of the tariff rates is needed. The problem with the Government’s proposals is the short notice, which has come about because of the rules that the Government created for themselves. I therefore ask the Government to withdraw the arbitrary 12 December deadline and introduce more measured proposals. If Government Members agree with that, the only option available to them this evening is to vote for the Opposition motion.

We have heard a lot from the Government about their being the greenest Government ever, but the proposal that we are discussing shows what a lie that is. The only way to bring renewable energy into mass use in this country, with the economies of scale that make it a viable option for most people, is by providing incentives now for those who are leading the trail. We need a Government with vision, who are committed to developing our renewable energy industry and to combating climate change.

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18:37 Glyn Davies (Montgomeryshire) (Con)

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.

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18:50 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

However, for those of us who are passionately committed to the green agenda, there are two great threats in these difficult economic times. First, and obviously, there are the climate change deniers, but secondly, and I think even more dangerously at the moment, there are the deficit deniers. There is no greater bunch of deficit-denying opportunists than Opposition Front Benchers, who seem to think that the green economy lives in a vacuum, immune to the economic realities confronting every other sector of the British economy and to the impact that that has on consumer bills.

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