Government loses crucial solar appeal
The Department of Energy and Climate Change (DECC) has lost its appeal against a High Court ruling that branded its plans to rush through cuts to solar subsidies as illegal.
Three Court of Appeal judges this morning upheld the original decision that the government had acted unlawfully in proposing cuts to feed-in tariffs for solar installations completed after December 12 last year, on the grounds the consultation on the proposed changes to the scheme did not close until December 23.
The ruling was celebrated by the solar industry, which has consistently argued that ministers should not be allowed to impose "retrospective" changes to the feed-in tariff incentive scheme.
"Four Judges, including three in the Court of Appeal, have now called the government's actions illegal," said Daniel Green, chief executive at Homesun, one of the company's behind the legal action. "That's a four-nil victory and a decisive ruling that government may not make retrospective changes to the FIT because, as Lord Justice Moses concludes, to do so 'would be to take away an existing entitlement without statutory authority'."
His comments were echoed by Jeremy Leggett, chairman of Solarcentury, who writing on Twitter urged the government to now accept the ruling and work to build "a counter-austerity industry in solar".
The ruling means that the government will now have to pick up the costs of the organisations that brought the original legal action.
However, a DECC spokeswoman said the government was still "considering our options" in the wake of the ruling, prompting speculation the government could seek to lodge a second appeal with the Supreme Court.
Reports that the government could yet seek to appeal again to the Supreme Court prompted an angry reaction from solar industry campaigners.
Writing on Twitter Seb Berry of Solarcentury said: "Appeal Court rejected DECCs application to appeal to the Supreme Ct. DECC can still apply directly but on what possible grounds?"
Others have suggested that the government may consider an appeal in order to ensure demand for new solar installations remains low in the run-up to March 3 – the new cut-off date for the higher rate of feed-in tariff incentives.
If the government does not appeal against today's court ruling the level of incentives available for installations completed before March 3 will be confirmed at 43p/kWh. Ministers are concerned that the ruling could spark a month-long gold rush as households and businesses scramble to take advantage of the higher rate, eating further into a feed-in tariff budget that has already been exceeded for this year.
In contrast, the continued uncertainty caused by a further appeal would stop solar firms advertising that the current feed-in tariff rate is set at 43p/kWh, potentially dampening demand until the incentives are halved on March 3.
The ruling should also pave the way for the release of the government's long-awaited full review of the feed-in tariff scheme, which has been promised for early next month and is expected to map out how ministers plan to cut incentives in future.
Andy Atkins, executive director of Friends of the Earth, which was also involved in the legal action, urged the government to now reform the scheme, increasing the spending cap to allow for the continued expansion of the solar sector.
"This landmark judgment confirms that devastating government plans to rush through cuts to solar payments are illegal – and will prevent ministers from causing industry chaos with similar cuts in future," he said.
"The government must now take steps to safeguard the UK's solar industry and the 29,000 jobs still facing the chop. Ministers must abandon plans to tighten the screw on which homes qualify for solar payments – and use the massive tax revenues generated by solar to protect the industry."
Source: Business Green
