§ Llew SmithTo ask the Secretary of State for Trade and Industry what assessment she has made of the case for the introduction of a support system for solar electricity by establishing a tariff that pays a higher price per KWh for solar electricity generated. [84216]
§ Mr. WilsonThe Renewables Obligation which the Government introduced from 1 April 2002 provides a substantial market advantage to most forms of renewable energy including solar electricity.
The possibility of a banded Obligation set at different levels for different forms of renewable energy was among possibilities explored in the consultations prior to the introduction of the Renewables Obligation, but a banded Obligation was rejected as too complex and requiring too great a degree of intervention in the renewable energy market.
The Government has, however, taken action additional to the Renewables Obligation to promote solar energy, in particular the setting up of the Major Photovoltaics (PV) Demonstration Programme on 26 March 2002. The Government has provided £20 million over three years for the first phase of this programme. Grants averaging 50 per cent, of costs are available both for small-scale applications between 0.5 and 5kWp and for medium and large scale installations up to l00kWp.
Prior to this, the Government provided £10 million for the Domestic Field Trial and Large-Scale Field Trial for Public Buildings, which will see a minimum of 500 homes and 15 larger non-residential buildings receive PV systems.