Department for Energy Security Chair of The Environmental Audit Committee Technological innovations and climate onshore solar power Thank you for your letter of 4 May 2023 on behalf of the Environmental Audit Committee (EAC). It is welcome to see the committee engaging so constructively with Government ambitions for solar power. Solar photovoltaics (PV) is a key part of the Government’s strategy for net zero, energy independ ence and clean growth and, as set out in the British Energy Security Strategy and the Energy Security Plan, we are aiming for 70 gigawatts of ground -mount and rooftop solar capacity by 2035. This is roughly equivalent to a fivefold increase on current inst alled capacity, and we agree that we will need to maximise deployment of both types of solar to achieve this ambition. I have reflected on the committee’s recommendations with formal The EAC recommended that Government works with DNOs and National Grid ESO to seek short -term solutions to address delays given the continuing energy price crisis , as well as working to deliver long term fixes to improve Years of world -leading gr een investment has meant network operators have experienced record demand for connections to the electricity network for solar PV and other renewable technologies. We have increased the amount connected to our grid more than sixfold, connecting the second highest amount of renewable electricity in Europe since 2010 according to IRENA statistics. But we want to go further and faster , so we are taking steps to accelerate the connection of even more by releasing network capacity and reforming the connection process working with key partners, such as Ofgem and network companies, to ensure more homes and businesses can be powered by clean, cheap renewable energy. For example, on 10 May, the Government published a consultation for the

‘Strategy a nd Policy Statement for energy policy in G reat Britain’, which sets out , among other things, our ambition to scale network capacity ahead of need1. Many of the shorter-term suggestions referred to in your letter are covered by connection reform workstreams led by the Electricity System Operator 2 and Energy Networks Association 3 respectively. Government is engaged in both workstreams. We also committed in the Powering Up Britain Energy Security Plan 4 to publish a Connections Action Plan in the summer . The plan wi ll build upon the industry-led work as well as setting out longer-term connection reforms. The Government welcomes the EAC’s announcement of its inquiry into Enabling sustainable electrification of the UK economy and will provide more detailed information on grid connections as part of our wider response. The Government has today sent a revised response to the EAC’s Accelerating the transition from fossil fuels inquiry. The second recommendation from the EAC was that t he Government should consider consulting on how it can facilitate affordable loans for households to be able to join the solar revolution. The Government is taking forward the recommendation from Chris Skidmore’s Independent Review of Net Zero to explore options for facilitating low -cost finance from retail lenders to help household s and businesses with the upfront costs of installation and d rive rooftop deployment. This builds on a commitment previously made in the British Energy Security Strategy. The Government launched the Green Home Finance Accelerator (GHFA) in October 2022. The Accelerator is providing £20 million in grant funding to catalyse the market for green finance enabling homeowners to decarbonise their homes and improve thermal comfort via fabric, low -carbon-heating and solar PV measures. 26 projects have been awarded approximately £4 million to undertake an initial six months of discovery and development work. Details of the grant awardees, which include a number of rooftop solar focused finance projects, will be announced shortly. Thirdly, r egarding Government monitoring deployment levels and economic incentives for installation of solar by households and business , Ofgem reports annually on the range, nature and uptake of tariffs offered by suppliers in response to their Smart Export Guarantee (SEG) obligations. Governmen t will continue to review this to monitor whether the market is delivering an effective range of 1 2 3 48252/powering-up-britain-energy-security-plan.pdf (p50)

In addition, data from the Microgeneration Certification Scheme (MCS) suggests a total of 130,596 solar panels were installed on UK rooftops last year alone, which is almost the same as that seen in 2019, 2020 and 2021 put together. The Government will continue to review this to monitor rooftop deployment levels across the UK. With reference to the recommendation of establishing milestone installation ambitions on the path to 2035 , the Government announced in the Energy Security Plan that we will publish a solar roadmap in 2024, setting out a clear step by step solar deployment trajectory to achieve the near fivefold increase , up to 70GW, of solar by 2035 . This will demonstrate the Government’s clear commitment to the sector and provide certainty to investors . Government has also established a government/industry taskforce, covering both ground mounted and rooftop solar , to drive forward the actions needed by Government and industry to make this ambition Regarding the recommendation that new ly constructed housing incorporate solar PV as a minimum requirement . In December 2021 the Government introduced an uplift in energy efficiency standards, which came into force in June 2022. The uplift delivers a meaningful reduction in carbon emissions, with new homes now expected to produce around 30% less CO2 emissions co mpared to those built to the previous standards. Our approach to achieving higher standards of energy performance remains technology-neutral, to provide developers with the flexibility to innovate and choose the most appropriate and cost -effective solutions for their site. We expect, however, that in order to comply with the uplift, most developers will choose to ins tall solar panels on new homes or use other low-carbon technology such as a heat pumps. The Government is working to publish a full technical consultation later this year on the Future Homes and Building Standard.
As part of the consultation, we will exp lore how we can continue to drive onsite renewable electricity generation, such as solar panels, where appropriate in new homes and buildings. Encouraging the installation of household battery storage alongside solar Regarding extension of the discount for battery storage, the VAT measure means that battery storage supplied as part of installation of a qualifying material will benefit from a VAT zero rate for the next 5 years. Battery storage has not been added to the list of qu alifying materials itself and therefore will continue to be standard rated when installed as a standalone product. However, His Majesty’s Treasury (HMT) recently launched a Call For Evidence to consider changes to the energy saving materials VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions . We encourage you to share any evidence you may hold with HMT as to why storage should be Skills and supply chain issues

Finally, regarding the skills and supply chain issues that you’ve highlighted for the solar sector , whilst we currently have no plans to intervene in the market to enable the UK to become self -sufficient in the manufacture of solar panels, renewable supply chain development is a key Government priority, and we encourage large scale renewable developers accessing our flagship Contracts for Difference scheme to grow the supply chain through the Supply Chain Plan process. The Government is committed to tackling the issue of Uyghur forced labour in supply chains and is taking robust action. Over the last year we have in troduced new guidance on the risks of doing business in Xinjiang, introduced enhanced export controls, and announced the introduction of financial penalties under the Modern Slavery Act. This followed the Government’s announcement in September 2020 of an a mbitious package of changes to the Modern Slavery Act. These changes will require businesses and public sector bodies to report on specific areas in their modern slavery statements, including due diligence in relation to modern slavery. These measures wil l be included in the Modern Slavery Bill that was announced as part of the Queen’s Speech in May 2022. And last year, under our G7 Presidency, G7 members committed to eradicate the use of all forms of forced labour from global supply chains. We continue to keep our policy response under review. As set out in the Net Zero Growth Plan, the renewables industry is working within the Green Jobs Delivery Group to develop the Net Zero Skills and Workforce Action Plan to be published in 2024, which will address emerging workforce challenges, including for solar . Also in the Net Zero Growth Plan , the Government highlighted ongoing work to build UK training and certification capability for solar. The Government is currently working with industry to scope out the work of the new Solar PV Taskforce and we expect it will wish to focus on a number of these important issues raised by the Committee. Secretary of State for Energy Security & Net Zero