First published on the Cleantech Investor website, 21 December 2011
A Judicial Review ruled today against the UK Government's decision to have an 'effective date' for the change to the solar Feed In Tarriff incentives before the end of the FiT review consultation period. The Government had withdrawn the subsidy from 12 December, before the consultation period was complete (it ends on 23 December) but Mr Justice Mitting ruled today in the High Court that this was illegal.
The case was brought to court by HomeSun, Friends of the Earth and Solarcentury. HomeSun CEO, Daniel Green, said:
“There are so many winners who will benefit from this decision: the solar industry with its 35,000 jobs and 3,000 companies, which may now be saved".
However, the Govenment reportedly plans to appeal the High Court decision. The response from Climate Change Minister Greg Barker was thatt:
“We disagree with the Court’s decision. We will be seeking an appeal and hope to secure a hearing as soon as possible. Regardless of today’s outcome, the current high tariffs for solar PV are not sustainable and changes need to be made in order to protect the budget which is funded by consumers through their energy bills.”
Clare King, a specialist renewable energy lawyer at Osborne Clarke commented on today's ruling that:
“This is a positive initial message for the UK solar industry, however, the situation is still far from clear and industry players would be wise to sit tight until a new reference date is set. Until then the lack of certainty is going to make it difficult for solar companies, homeowners and investors to plan for the future.”
The solar industry in the UK has, for the most part, acknowledged that a reduction in the level of the Feed In Tarriff is fair - in the context of falling global prices for solar panels. The industry's argument has been with the abrupt manner in which the Government was implementing the change and the implications for projects which had been started on the understanding that the Feed In Tarriff would remain at the same level.
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