Asked by: Earl of Shrewsbury (Conservative - Excepted Hereditary)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what plans they have to fund combined heat and power projects for public bodies, such as the NHS; and whether any such funds would be made available via government agencies, such as Salix Finance.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is committed to achieving net zero greenhouse gas emissions by 2050. On the path to net zero, the Net Zero Strategy and the Heat and Buildings Strategy committed to an aim of reducing emissions from public sector buildings by 75% by 2037. We are clear that the continued use of fossil fuels for energy is not compatible with that ambition.
Combined heat and power installations can encompass a range of different generation technologies and are fueled by fossil fuels or renewable sources such as biomass. Whilst those that operate using fossil fuels are not supported under the Public Sector Decarbonisation Scheme, there are a number of existing support mechanisms in place for CHP that meets defined efficiency thresholds, including environmental tax exemptions such as the Climate Change Levy. The Government continues to look to develop policies to support the decarbonisation of combined heat and power in the future and there is currently a live Call for Evidence on the pathway to decarbonisation for CHP that runs to 20 December 2021.
Asked by: Lord Vinson (Conservative - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask Her Majesty's Government what plans they have, if any, to reduce toxic landfill by encouraging the use of Combined Heat and Power (CHP) incineration of waste.
Answered by Lord Goldsmith of Richmond Park
The Government's Resources and Waste Strategy, published in 2018, sets out how we will minimise the damage caused to our natural environment by reducing and managing waste safely and carefully. A key principle is to prevent waste in the first place, in keeping with the waste hierarchy, which ranks options for waste management according to their environmental impact. Where waste does occur, we need to manage it in the most efficient way possible. After waste prevention, priority goes to reuse, recycling, and then recovery. Disposal, for example in landfill, is generally regarded as the worst option.
We are therefore encouraging increased use of heat through Combined Heat and Power (CHP) from EfW as it almost doubles the fuel efficiency and can play a really valuable role in our transition to decarbonising the heating of homes and buildings. There is financial support from government for EfW plants and heat networks developers to do this in the form of the existing Heat Networks Investment Project and the upcoming Green Heat Network Fund. The Heat Network Investment Project is already funding CHP based EfW projects in Leeds, London and Cardiff that will supply low carbon heat to local homes and businesses.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Housing, Communities and Local Government on the potential cost benefits of reducing VAT on (a) building products and (b) low-carbon technologies used to retrofit homes to improve (i) indoor air quality, (ii) energy efficiency and (iii) the health of occupants.
Answered by Jesse Norman
The Government already makes available a reduced rate of VAT on the installation of energy efficient products, including solar panels and micro combined heat and power units, when certain conditions are met.
Extending the current VAT relief would come at a significant cost to the Exchequer, and there are no current plans to extend the scope of the relief already in place. However, the Government keeps all taxes under review.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made, if any, of the impact of (1) removing, and (2) reducing the rate to 0 per cent for, VAT on domestic (a) renewable energy installations, and (b) energy efficiency measures, for 10 years on increasing the uptake of microgeneration in domestic properties.
Answered by Lord Agnew of Oulton
The installation of many energy saving materials, including solar panels and micro combined heat and power units, is already subject to the reduced rate of VAT when certain conditions are met.
There are no current plans to extend the scope of the relief already in place. However, the Government keeps all taxes under review.
Asked by: Baroness McIntosh of Pickering (Conservative - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what steps they are taking to ensure that electricity generated by waste-to-energy facilities will be used to the benefit of the local community closest to where the electricity is generated.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Local communities are already able to benefit from the sale of electricity from Energy from Waste (EfW) plants in those instances where the local authority has made a provision to retain revenue from the sale when tendering a waste processing contract.
For EfW plants that utilise combined heat and power (CHP) technologies the local area can also benefit from the supply of low carbon heat, either via a heat network to heat homes and commercial premises or by direct connection to an industrial site to help incentivise businesses.
The Government is supporting EfW-based networks through its £320m Heat Network Investment Project and from 2022 an additional £270m will be available through the Green Heat Network Fund.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the case for removing VAT from domestic microgeneration renewable products and installations to help consumers to adopt domestic renewable energy sources.
Answered by Lord Agnew of Oulton
Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials that generate domestic energy, such as solar panels and micro combined heat and power units, are subject to the reduced rate of VAT when certain conditions are met.
Although there are no current plans to extend the scope of the relief already in place, the Government keeps all taxes under review.
Asked by: Baroness Kennedy of Cradley (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the future of combined heat and power plants in the UK.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The government is currently reviewing the role of combined heat and power plants, as the economy transitions to net-zero carbon emissions by 2050. The Department for Business, Energy and Industrial Strategy held a call for evidence, Combined Heat and Power (CHP): the route to 2050, between 12 June and 4 September. The responses are currently being analysed and a government response will be published in due course.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will remove VAT on (a) domestic renewables and (b) installations for a period of 10 years to help (i) stimulate the green economy and (ii) the uptake of microgeneration.
Answered by Jesse Norman
Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials that generate domestic energy, such as solar panels and micro combined heat and power units, are subject to the reduced rate of VAT when certain conditions are met.
Although there are no current plans to extend the scope of the relief already in place, the Government keeps all taxes under review.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of removing VAT on (a) domestic renewables and (b) installations to help (i) grow the green economy and (ii) stimulate the uptake of microgeneration on domestic properties.
Answered by Jesse Norman
Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials that generate domestic energy, such as solar panels and micro combined heat and power units, are subject to the reduced rate of VAT when certain conditions are met.
Although there are no current plans to extend the scope of the relief already in place, the Government keeps all taxes under review.
Asked by: Abena Oppong-Asare (Labour - Erith and Thamesmead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to change the rate of VAT applied to micro combined heat and power units installed in dwellings and buildings used for a residential purpose.
Answered by Jesse Norman
Under current VAT rules, the installation of water and wind turbines is subject to the standard rate of VAT. However, the installation of other energy saving materials (ESMs) remains subject to the reduced rate of VAT when certain conditions are met.
Although there are no plans to extend the scope of the relief already in place, the Government keeps all taxes under review.