Published on Wednesday, Jan 25 2012 by David Sanderson
The Government has lost to the
solar panels industry in the latest round of the battle over plans to cut subsidies for homeowners who invest in
solar panel installations.
Energy Secretary Chris Huhne’s bid to overturn a ruling at the Court of Appeal has failed. He was appealing a decision which found that the Government’s plans are unlawful. The Government proposes to reduce feed-in tariff subsidies (FITs), which are payments made to those who generate electricity using solar energy, for any solar panel installations which were completed after 12 December 2011.
The Government had proposed cutting the feed-in tariff to 21p per kilowatt hour from December but this will not now take effect thanks to the court ruling. Judges ruled that this would be unlawful because the consultation on the reduced subsidies was still ongoing on 12 December – it still had 11 days to run.
Environmental groups and solar panels firms are celebrating the Court of Appeal win. They argue that many thriving
solar panel installers will go out of business if the changes go ahead. The ruling could mean that thousands of homes and businesses may now be able to claim higher payments through the scheme.
Those who had their solar panels installed before December will not be affected - they will still benefit from the tariff 43.3p for every kilowatt hour generated.
Energy and Climate Change Secretary Chris Huhne has confirmed he plans to take the case to the Supreme Court. He has also said, "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."
However, Green Party MP Caroline Lucas is quoted by the Guardian as saying, "Having lost twice in the courts and been roundly humiliated over the shambolic handling of solar policy, it is absolutely beggars belief that Huhne is planning to appeal to the Supreme Court."
Solar industry experts do not necessarily argue with the subsidies falling in general but call for a fairer system whereby they fall in line with the cost of solar panels. They say this will encourage investment in the technology and ensure that the industry continues to thrive.
The case in favour of the solar panels industry and against the government cuts has been backed by groups such as the National Trust, the Church of England and the CBI. Some have accused the government of siding with big energy companies.
John Cridland, director general of the CBI, is quoted as saying, "The judgement should be used to draw a line under this saga.”
To find out more about how solar panels function and how they could work as an investment for your home or business, go to the
EnergySaving Trust website.
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