Government FiT Appeal Denied 25.01.12
The Government’s appeal against the finding that their attempt to reduce the Feed-in Tariff (FiT) subsidy rate by 50% for domestic solar electricity (PV) systems has been denied today in the Court of Appeal. DECC have said they will ask for permission to appeal to the Supreme Court.
This morning the original High Court ruling was upheld that the Government had acted “unlawfully” in proposing cuts to the FiT rate for domestic solar installations after the 12th December 2011 on the grounds that the consultation period on the scheme did not close until 23rd December and the secretary of state, Chris Huhne, had no power under legislation to make retrospective changes to the FiT.
The Feed-in Tariff was introduced in April 2010 by the Department of Energy & Climate Change (DECC) and prior to the review stood at its highest rate of 43.3p per kWh paid for the generation of electricity produced by domestic solar electricity systems of up to 4kWp size across Britain. On the 31st October last year, DECC announced a review of the FiT stating that the original rate was not “sustainable” and put forward a proposal to reduce the subsidy to 21p per kW/h with an effective date of 12th December 2011.
The earlier change to the scheme sparked anger within the renewable energy industry with solar businesses and campaigners warning of the potential loss of thousands of jobs in the sector which was then followed by legal proceedings resulting in the High Court ruling that the premature change to the tariffs before the end of the official consultation period was “legally flawed”.
A spokesperson for DECC has said “The Court of Appeal has upheld the High Court ruling on FiTs albeit on different grounds. We disagree and are seeking permission to appeal to the Supreme Court.”
So what does this mean? Speculation is that the original tariff of 43.3p may be reinstated until the new deadline of 3rd March 2012, however should DECC win the right to appeal and win, the 21p rate would still apply from 12th December 2012. We join the rest of the industry in expressing our frustration that the uncertainty remains. In our opinion the 21p rate is still an attractive option and we would advise consumers to proceed with their installs on this basis prior to 3rd March 2012. If DECC lose their next application to appeal the lucky few who have had a system installed and commissioned prior to 3rd March could benefit from the higher rate.
Currently it would seem that the uncertainty will continue for some time yet.
To stay up to date please check back regularly for any updates.
You can access developments on the DECC website here:
