Floating Solar Panels

Miatta Fahnbulleh Excerpts

Thursday 26th June 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

I thank the hon. and gallant Member for Spelthorne (Lincoln Jopp) for securing a debate on this important issue and for prosecuting his case for floating solar with such flourish. I also wish to put on the record that the Minister for Energy, my hon. Friend the Member for Rutherglen (Michael Shanks), was desperate to be here and is very sorry that he cannot be, but I am glad that I am able to stand here in his place. I am also glad that the hon. and gallant Gentleman was able to make his speech today, as I know he was not able to intervene in the recent solar debate.

Let me start by saying that I absolutely agree. The Government are very clear that, like the hon. and gallant Gentleman, we believe there is an exciting role for floating solar. It is a new technology, but one that we think has huge potential. Developers around the world started to come forward with utility-scale proposals in the past decade, and several large projects have been constructed in recent years, including installations with the capacity to generate hundreds of megawatts of electricity, which have mainly been in China.

The hon. and gallant Gentleman has very effectively set out the upsides of floating solar, so I will not reiterate them. However, I want to put on the record that we agree, and that we recognise many of those upsides.

I will say a little about the state of floating solar in the UK today. There has been some deployment of floating solar in the UK. Lightsource led a project on the Queen Elizabeth II reservoir, which is just outside the hon. Gentleman’s constituency, as he mentioned. The project uses 24,000 solar panels to generate around 20% of the site’s electricity needs. It was, at the time of construction, Europe’s largest floating solar installation. There are now other, smaller projects across the country, but the scale is still nascent and very limited.

[Ben Obese-Jecty]

We have already heard about Grafham Water, which is a large reservoir in my constituency. Just to the north of my constituency, in North East Cambridgeshire, we are about to start building the Fens reservoir, which is, as I am sure the Minister is aware, a joint project between Cambridge Water and Anglian Water. It will be 50 million cubic metres, and the development consent order is expected to go in in 2026, with actual construction starting in 2029. Does the Minister agree that this is a fantastic opportunity to try out this nascent technology on a large project, which could generate so much energy in the Cambridgeshire area?

[Miatta Fahnbulleh]

I thank the hon. Gentleman for his intervention. There are many schemes and huge opportunities, and the Government are working with industry to think about what the potential is across the country. New proposals are coming forward, and we are trying to engage with them.

Although we see that there is huge potential, it is also important to put that in the context of some of the challenges we face as we try to grow floating solar. We are trying to do our part to work with industry, so we want to ensure that we deal with some of the obstacles and barriers to the schemes that are coming forward—for example, planning or investment certainty. Floating solar projects can apply to the Government’s flagship contracts for difference scheme, and they do.

I know that one of the arguments in favour of floating solar, which the hon. and gallant Gentleman put forward, and which was reiterated by other hon. Members, is that it will reduce the amount of land that we need to use. Arguments have been made about agricultural land and constraining the amount of ground-mounted solar panels on them. I gently say, however, that if we look at the statistics, we see that only 0.1% of land in the UK is covered by ground-mounted solar at the moment—a minuscule amount. Even with the expansion that we are actively trying to encourage, we are still talking about a fraction of UK land that will only ever be used for ground-mounted solar, so it is important to put that in context.

[John Cooper]

The Minister is right to point to the figures now, but this is a growing problem. One of the difficulties with the land that goes under solar panels is that it tends to be south-facing land, which is prime agricultural land. That is where the crops would normally go, so this is a growing problem.

[Miatta Fahnbulleh]

I recognise that point, but even with the expansion, we are still talking about only a fraction of land. Inevitably, regional and local government will make a judgment about the land that we protect. Everyone recognises that we must have prime agricultural land, because we need it, so we are making decisions, and local government will also be making decisions in that context.

[Lincoln Jopp]

I just point out to the Minister that she could save herself a vast amount of political pain, because, apart from a few swans that I saw, a couple of seagulls and one man from the Royal Society for the Protection of Birds, there ain’t many people who are going to complain about putting floating solar on raised reservoirs.

[Miatta Fahnbulleh]

I am always in the market for less pain. Let me say a little bit about some of the constraints. Eligible bids have been submitted to our contracts for difference schemes, but unfortunately none has yet been successful. That is because the cost of floating solar is about 10% to 15% higher than those of ground-mounted projects, and the reason for that is the cost of the floating structures on which the panel sits. And we hear from the sector that these can account for nearly half of the cost of the project. Moreover, floating solar requires expensive underwater cables, which costs more than land-based systems. Therefore, although we are very keen to encourage this technology and to encourage the sector to grow, there is more that needs to be done in order to make them cost effective. From a Government perspective, it is critical that every scheme and every project that we support is cost-effective, so that, in the end, taxpayers are not footing the bill for technology that is too expensive.

[John Cooper]

I thank the Minister for allowing me to intervene again. She is making a powerful argument for looking again at the CfD scheme, which is notoriously complicated and very difficult. I think we need a two-pronged approach—we need some changes to CfD, but obviously technology associated with solar is moving on all the time, so perhaps the two could come together.

[Miatta Fahnbulleh]

We will always keep this area under review. We recognise the potential of the technology, and we will continue to work with industry to bring down costs. As the hon. Member says, there are reservoirs and waterways where there are potential problems, but there is also the potential for it to be painless. If we can help to unlock the technology, there will absolutely be appetite from the Government for this. We are trying to invest in research and development in this area, and we are putting in Government support and investment to unlock that.

Finally, the hon. and gallant Gentleman mentioned the solar taskforce. We are working at pace to deliver the taskforce’s recommendations. The taskforce has effectively brought together industry and Government to discuss the actions needed to scale up solar deployment, in line with our 2030 clean power mission. It has identified the need for a road map to address the specific barriers to floating solar and other innovative technologies, and a sub-group has been convened to focus on this specific topic.

[Lincoln Jopp]

I wonder whether the taskforce has engaged with the company that runs the Queen Elizabeth solar farm; it is called Bluefield—very clever name; very clever company. It wrote to the Secretary of State earlier in the year, some four months ago, but is yet to receive a reply. I would be grateful to know whether the Department is engaging with Bluefield and whether I could nudge the Secretary of State to reply to its letter?

[Miatta Fahnbulleh]

I thank the hon. and gallant Gentleman for that; his nudge has been taken, and I will pass that on to the Minister for Energy. As a Department, we are trying to engage extensively with industry on how we will take forward the complex and difficult challenges as we try to deliver our clean power mission. If companies and organisations can lend their insights and knowledge to help us develop better policy, we are always in the market for that, so I will pass on the nudge.

We are finishing the final touches to the solar road map, and it is due to be published very soon. While I will not disclose the detail of it, I assure hon. Members that the question of floating solar will be addressed within it. We recognise that floating solar is an exciting area, and we think it has huge potential for deployment in the UK. We are seeing the technology being deployed more broadly in other countries, and we want to be part of that. The hon. and gallant Gentleman has talked about the benefits for the grid, water quality, consumers of electricity and, ultimately, climate change.

There is much to like about floating solar. The challenge for us is to work with industry to ensure that we can unlock its potential. That means reducing the cost, ensuring that it is cost-effective, and ensuring that we can deploy the technology. The one commitment I will make on behalf of the Government is that we will always engage with industry as we do this work. We want the innovation, insight and experience of the brightest and the best as we try to build up our clean power sector, so we will work with industry to unlock the huge potential that we believe is there.

Question put and agreed to.