Solar Power (Feed-in Tariff)

Debate between Alan Whitehead and Baroness Clark of Kilwinning

Wednesday 23rd November 2011 Commons Chamber

[Katy Clark]

As the Minister will be aware, energy prices in Germany are at the levels they were in 2008, which is a very different situation from the one we are in. Opposition spokespeople have already spoken about the bills that individuals and businesses have to face under this Government.

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?

[Dr Whitehead]

Would my hon. Friend be surprised to learn that the impact assessment that went with the present changes showed that the budget that this Government introduced would not be exceeded by more than 9% up to 2015? Further to her suggestion that the Treasury might find the money to put matters right, will she suggest to the Minister that if he looks at his own budget and the Treasury rules within it, he could solve the problem now?

[Katy Clark]

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.

The only way for the Government to achieve those aims is to commit themselves fully to feed-in tariffs and to create a regime that ensures certainty in the market, so that the financial sector, both in the private and the public sectors, knows that it can invest in renewables because there is certainty about the deal on the table. Such a regime will ensure that we have a green Government and a green Britain. I urge the Government to show vision and to re-examine their proposals.