Solar Power (Feed-in Tariff)

Glyn Davies Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Mr Spencer]

I agree with my hon. Friend. We can learn from some of the things Germany got right and some of the things it got wrong. That is the way to move forward.

Basically, there is a simple calculation. We need to get more solar panels for each pound we spend, and the Secretary of State’s suggestions would deliver more panels per pound. That is the simple calculation we have to make. The other thing we need to do is bring the technology into the mainstream.

[Glyn Davies (Montgomeryshire) (Con)]

One of the issues the Opposition have been discussing today is that of jobs and lost jobs. Clearly, if twice as many panels are being built sustainably in the longer term, there will be a lot more jobs.

[Mr Spencer]

That is absolutely true.

As I was starting to outline, the other thing we need to do is to bring the technology into the mainstream. This is no longer some green dream. Solar panels are a real opportunity to deliver a credible energy source to our homes. Many companies that focus solely on solar power have been established, but we need to tackle the matter by ensuring that normal contractors—electricians and plumbers—look at such technologies as an alternative.

At the moment, an example of what happens is this. Mrs Jones’s boiler will break down and a plumber will come along. If the plumber does not have the expertise to say, “These are the alternative renewable sources of energy that you can look at,” she will have a normal gas-fired boiler fitted in her home. We need to bring such technologies into the mainstream, so that regular electricians and plumbers have the experience to deliver them. I hope that, as the scheme is successful, they will be able to tap into it and deliver that. I am not just talking about specialised solar companies, but normal, everyday contractors. That is starting to happen and will continue.

I am very conscious of the time, so I shall summarise the matter quickly and leave my colleagues time to speak. We inherited an energy supply system that was in tatters. We have had to tackle that at the same time as greening our energy supply and lowering our carbon footprint. That is an enormous challenge. We have made some very good progress, but there is a way to go and, under the current Administration and with the support of the Secretary of State, we can make great progress.

--- Later in debate ---

[Glyn Davies (Montgomeryshire) (Con)]

Thank you, Mr Deputy Speaker, for allowing me to contribute to an important and complex debate. The issue has a significant impact on Montgomeryshire. I know that many other Members have received communications from people who are concerned about the changes to the feed-in tariff.

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.

The Government remain committed to a variety of energy sources. Nuclear is clearly an important part of that. Renewables have a big part to play—tidal, possibly shale gas, offshore wind and even solar. Just because there is a change in the regime, I do not believe that solar will be put on the back burner at all.

The problem with feed-in tariffs for solar PV is that they have been far more successful than anybody ever anticipated. A number of Members have mentioned that today. Three times as many applications have gone ahead as could have reasonably been expected. In September alone there were 16,000 new applications. We saw the graph that the Secretary of State showed us earlier—it looked like a hockey stick. If action had not been taken now, the whole tariff scheme would have become completely unsustainable.

[Mel Stride (Central Devon) (Con)]

Does my hon. Friend agree that not only would the FIT scheme become untenable, but the jobs created in the short term through the gold rush to get into the marketplace would quickly evaporate? What we want is long-term, sustainable jobs, hence the need to bring the FIT down.

[Glyn Davies]

I very much agree with my hon. Friend; it is a point I made in an earlier intervention. I thought that the Secretary of State’s reference to a Catherine-wheel was a wonderful analogy. A quick burst followed by a reduction in the number of jobs in the long run as a result of not doing something about the scheme would be entirely negative. Any scheme must be sustainable, and the problem with the scheme as it stood was that it was completely unsustainable.

When I first heard about the predicted change, I was as concerned as anyone, which is why I listened to the Secretary of State’s statement very carefully. Afterwards, I understood that the Government had absolutely no choice but to go forward with the changes they have made. That is the only way the scheme can be sustainable in the long term. The issue is the timetable. I was greatly relieved that he pointed out in his contribution that there is a consultation period. If people have lost money—not making less money than they were before—we need to put those cases forward and I hope that he will take them seriously and consider their special circumstances.