Government loses appeal on solar feed-in-tariff
The government has failed to overturn the High Court's decision to block controversial plans to implement major cuts to solar energy feed-in tariff payments.
The Court of Appeal yesterday found in favour of the claimants – Friends of the Earth and two solar energy companies, Homesun and Solarcentury – but for different reasons than the High Court judge. Mr Justice Mitting had ruled in December that the government's consultation over the changes was inadequate.
However, the Court of Appeal has now held that the Secretary of State for Energy and Climate Change had no power to do what he had proposed. (For the reasons why, see High price to pay? by David Hart QC)
The government’s announcement in November of plans to impose substantial cuts to FITs payments from 12 December, rather than the expected date of April 2012, led a number of local authorities and housing associations to delay or cancel projects.
Responding to the Court of Appeal’s verdict, Cllr David Parsons, Chairman of the Local Government Association’s Environment Board, said: “The notification of this cut and the decision to appeal has created huge uncertainty. It is imperative that government now acts swiftly to try and resolve the uncertainty by setting out a workable, affordable and fair way to promote renewable energy and make solar panels affordable.
“By announcing cuts to subsidies at such short notice, the Department for Energy and Climate Change (DECC) caused the cancellation of thousands of solar panel installations. Some councils were left with little choice but to let down thousands of tenants, while writing off millions of pounds which had been spent preparing and tendering for solar panel installations which would never see the light of day. This has also caused damage to local economies with renewable energy firms shedding hundreds of jobs as a result of contracts falling by the wayside."
Cllr Parsons added: "As solar panels become cheaper, it is right that the rate of Feed-in-Tariff should be reduced accordingly. However, current proposals would mean social housing tenants receive a lower rate of subsidy than people who rent privately or own their own homes. Families in council and housing association homes pay, through their electricity bills, for subsidised installation of solar panels and it is only right they get the same fair deal as everyone else. We would urge the Government to go back to the drawing board and ensure that its reform of Feed-in Tariffs does not price the most vulnerable in society out of solar energy.”
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