Oral Answers to Questions Debate

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Oral Answers to Questions

Tom Brake Excerpts
Thursday 12th May 2016

(7 years, 12 months ago)

Commons Chamber
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Andrea Leadsom Portrait Andrea Leadsom
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No, I do not recognise what the hon. Lady says. Solar deployment in this country has been amazing, and far in excess of all our expectations. Some 99% of solar installations have taken place since 2010—under this Government and the previous Government, not under the Labour Government. It has been a huge success story. As I have said, our subsidy regime takes into account the interest for the consumer who has to pay it and the developer who is continuing to build. Some of the caps have already been met and others are performing strongly.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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14. What assessment she has made of the potential effect of the proposed removal of support for solar thermal on the UK solar thermal and cylinder manufacturing industry.

Andrea Leadsom Portrait The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
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We launched a consultation in March with proposals for reform of the renewable heat incentive. As the right hon. Gentleman will be aware, the consultation, which closed on 27 April, included a proposal to withdraw RHI support for solar thermal technologies. We are looking carefully at all the responses. I can assure him that in coming to our conclusions we will consider all relevant factors, including the impact on the UK supply chain.

Tom Brake Portrait Tom Brake
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Does the Minister accept that solar thermal has the lowest CO2 footprint of all heating generation technologies, has no significant ongoing fuel commitments, has relatively low space requirements and is ideal for homes for vulnerable people because there is no requirement for homes to be heavily insulated? Why are the Government proposing to cut support for solar thermal?

Andrea Leadsom Portrait Andrea Leadsom
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I absolutely agree that it certainly plays a part, but I can tell the right hon. Gentleman that, as part of the reform of the RHI, we are trying to ensure that the budget offers the best value for money. Solar thermal requires the highest subsidy from the Government of all RHI technologies, and the evidence suggests that nearly 50% of RHI respondents said they would have installed it anyway, even without Government subsidy. We always need to look at the balance between keeping the costs down for the bill payer and supporting these technologies.

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Amber Rudd Portrait Amber Rudd
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I can assure my hon. Friend that we are working closely with all energy suppliers on those aspects of the roll-out to ensure that the consumer benefits are fully realised. Good progress has been made so far, with over 3 million meters installed, and there is evidence that those consumers are already saving energy. Recent research by British Gas shows that consumers with smart meters have reduced their energy consumption by around 3%, on average, for both gas and electricity.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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T2. I hope that this will be a case of third time lucky. I have asked the Housing Minister this question twice, and I have also notified the Secretary of State’s office of the question, so I hope I am going to get a reply. What is the difference in the annual energy bill that a family in a zero-carbon home would have to pay as opposed to a family in a home that has the insulation and energy efficiency standards that the Government propose?

Amber Rudd Portrait Amber Rudd
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The right hon. Gentleman’s question starts from an incorrect premise. [Interruption.] I am trying to answer his question; bear with me. I think that he is referring to the zero-carbon proposal that was rejected by the other place last night, although it was agreed that a review would be ongoing. The problem with zero-carbon homes, as conceived in the Bill, was that they would add costs to the house. If we add costs to the house, we add costs, ultimately, to the house owner, the consumer and the bill payer. The problem with the allowable solutions portion was that it would act as a tax on home builders and, ultimately, it would be of no benefit to the homeowner.