The Court of Appeal has rejected Government attempts to overturn last month’s High Court ruling that it’s proposed cuts to Feed-in Tariffs would be illegal.
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The three judges also refused permission for the Government to appeal to Supreme Court. Ministers are now “considering their options”, including whether to apply directly to the Supreme Court for permission to appeal.
Friends of the Earth says any further appeal will create yet more uncertainty for solar firms and, after two courts have ruled their move illegal, is urging Ministers to concentrate on safeguarding the industry rather than wasting more time and money on further appeals.
The High Court ruled shortly before Christmas that Government plans to cut payments for any solar scheme completed after 12 December – 11 days before the official consultation closed – were unlawful. The judgement followed legal challenges brought by Friends of the Earth and two solar firms, Solarcentury and HomeSun, last month.
The Court of Appeal judgement will prevent Ministers rushing through cuts to feed-in tariff payments in future, restoring some confidence to the UK’s clean energy industry. But Friends of the Earth warns that unless Ministers change other parts of their solar subsidy proposals, up to 29,000 jobs could be lost.
Friends of the Earth is urging Ministers to find more money – paid for from tax payments the industry generates – to safeguard the long-term stability of the solar industry. The environmental campaigning charity is also calling for crucial amendments to proposed Government solar payment changes, including re-examining over-strict energy efficiency rules that will prevent 90 per cent of houses from claiming solar subsidies.
The ruling means that, subject to any further appeal to the Supreme Court, solar tariff payments will remain at 43.3p (p/kWh) until 3 March 2012 when – following Government moves last week – they will fall to 21 pence.
Friends of the Earth’s Executive Director Andy Atkins said:
“This landmark judgement 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.
“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.
“Helping more people to plug into clean British energy will help protect cash-strapped households from soaring fuel bills.”
Responding to the verdict, Councillor 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 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.
“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.”
Responding to the verdict, Energy and Climate Change Secretary Chris Huhne 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.
“We have already put before Parliament changes to the regulations that will bring a 21p rate into effect from April for solar pv installations from 3 March to help reduce the pressure on the budget and provide as much certainty as we can for consumers and industry.
“We want to maximise the number of installations that are possible within the available budget rather than use available money to pay a higher tariff to half the number of installations. Solar PV can have strong and vibrant future in UK and we want a lasting FITs scheme to support that future and jobs in the industry.”
Further Information
- The current rate of subsidy for solar panels schemes up to 4kw in size is 43.3p/kWh. Under cuts being proposed by the Department for Energy and Climate Change this would fall to 21.0p/kWh for any schemes with an eligibility date after 12 December 2011. For multiple installations such as those on social housing schemes the rate would be 16.8p/kWh.
- Recent research, undertaken by Element Energy for Friends of the Earth and Kingspan, says that tough measures currently proposed by the Government would mean up to 29,000 jobs lost in the solar industry.
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