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DECC “considers options” following solar FiT appeal bid defeat

Green policy news – by Louise Bateman
25th January 2012
The Department of Energy and Climate Change (DECC) is considering further legal action, including going to the Supreme Court, after losing its appeal bid over its plans to cut the Feed-in Tariff (FiT) for solar electricity.
The Court of Appeal today upheld a High Court ruling that Government plans to cut the FiT subsidy for small-scale solar photovoltaic installations were unlawful.

Responding to the decision, a DECC spokesperson said: "The Court of Appeal has upheld the High Court ruling on FITs. We are now considering our options." One of those options is to go to the Supreme Court, the spokesperson confirmed. 

Industry reaction
But the solar industry today urged the Government not to take further action and instead "draw a line" under the FiT fiasco. 

"Hopefully today’s result will draw this episode to a close, and mean that one of the only growing sectors in the UK can get back to work," Howard Johns, chairman of the Solar Trade Association, said. "The Government’s appeal against the original ruling has created huge uncertainty for the thousands of small businesses in the sector, and we sincerely hope that the Government chooses not to take this further by appealing against this result."

Friends of the Earth, which – along with solar firms Solarcentury and Homesun – won the High Court case against the Government, in December, warned that going to the Supreme Court would create "yet more uncertainty for solar firms" and waste more time and public money.

"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," Friends of the Earth’s executive director Andy Atkins said.

"The Government must now take steps to safeguard the UK’s solar industry and the 29,000 jobs still facing the chop."

Today’s decision means DECC cannot go through with its original plans to cut to the FiT – from 43 pence to 21 pence for solar installations up to four kilowatt in size – until March 3 2012. Ministers at DECC had put forward plans to cut the tariff from December 12 2011, saying early decisive action was required to safeguard the FiT budget.

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