HC Deb 06 November 2002 vol 392 cc383-4W
Mr. Hoban

To ask the Secretary of State for Trade and Industry, what incentives are available to encourage the installation of photovoltaic cells in(a) domestic and (b) non-domestic premises. [78175]

Mr. Wilson

[holding answer 29 October 2002]: The £20 million First Phase of the Major Photovoltaic Demonstration Programme offers grants of 50 per cent. on small scale domestic solar panel arrays installed by accredited companies. Grants are also available for larger scale non-domestic systems. The programme has been running now for 6 months and has had 78 successful applications accounting for around £2 million in grants.

By the end of the three year first phase we hope to have installed PV systems on 3000 domestic roofs and 140 medium and large public and commercial buildings.

VAT reductions are also available for professionally installed solar panels.

Gareth Thomas

To ask the Secretary of State for Trade and Industry, if she will introduce(a) fixed net metering, (b) a feed in tariff and (c) loans for those wanting to install a solar photovoltaic system. [78141]

Mr. Wilson

(a) Fixed net metering is a matter for individual suppliers, as its introduction involves them incurring costs. However, initiatives to promote its uptake are under consideration within DTI, e.g. under the Distributed Generation Co-ordinating Group.

(b) The Renewables Obligation came into force in April of this year. This is considered a more market-driven approach than a feed-in tariff, and so compatible with a liberalised, competitive market.

(c) Feed-in tariffs and low interest loans are features of the German Government's PV support programme, whereas we have chosen the capital grant route, which is more akin to the Japanese approach. The £20 million first phase of the Major Photovoltaic Demonstration programme, launched in March this year, offers grants averaging 50 per cent. for small and large-scale PV installations. It has been running now for 6 months and has had 78 successful applications accounting for around £2 million in grants. By the end of the three year first phase we hope to have installed PV systems on 3000 domestic roofs and 140 medium and large public and commercial buildings.