Caroline Lucas – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Caroline Lucas on 2015-12-01.

To ask Mr Chancellor of the Exchequer, what the Government’s policy is on the appropriate percentage rate of return on investment for (a) schools and community groups investing in on-site solar power and (b) foreign state owned companies investing in new nuclear power in the UK; and if he will make a statement.

Greg Hands

We want to attract cost-effective investment in infrastructure. Investors rightly expect a market rate of return and value for money is achieved through competition and careful negotiation. Individual project rates of return will differ to reflect, among other things, the risk profiles involved.

The Feed-in-Tariff scheme, for which schools and community groups are eligible to apply, aims to offer rates of return for solar installations between 4% and 8%. Returns for each installation will vary according to their individual costs and the amount of electricity generated and used on site. The Government’s recently closed consultation on the scheme includes a review to ensure that tariffs are within this range, given the fall in costs of solar panels in recent years. It will detail its response to the consultation shortly.

We are unable to disclose the anticipated rate of return for new nuclear transactions as these are commercially sensitive.