Judgement to be handed down on Government solar FiT appeal

It follows a legal challenge by Friends of the Earth and two solar firms – Solarcentury and HomeSun – in which the High Court ruled in December that Government plans to slash payments for solar photovoltaic (PV) installations completed after December 12 2011 – 11 days before an official consultation into the proposal had closed – were unlawful. 

"Judgment will be handed down at 10am tomorrow [Wednesday 25 January 2012] on the Government's appeal against last month’s High Court ruling," Friends of the Earth said in a statement.

A spokesperson for DECC confirmed it too was "aware of movement on [the case] tomorrow."

The Court of Appeal has not yet granted the Government leave to appeal, but if it does tomorrow, it will also pass judgement. 

The judgement – which had been expected to take longer to reach – will draw to a close weeks of uncertainty for the solar industry, which has been reeling ever since Government plans to cut the tariff were announced at the end of October. Solar firms were given just six weeks notice to prepare for the cuts, leading to fears of massive job cuts and business closures in the sector. Friends of Earth said DECC’s action has put 29,000 jobs at risk. 

DECC maintains the cuts are necessary to ensure the budget for the FiT, which was capped by the Chancellor in the 2010 Comprehensive Spending Review, is protected. 

Nevertheless, last week, DECC announced contingency plans for the FiT cut in the event it should lose its appeal. Citing its wish to end the uncertainty that has been brought about by the legal challenge, it said it was making provisions to delay the eligibility date for a reduced FiT rate from on or after December 12 2011 to March 3 2012. In both cases, the reduced FiT rate would apply from April 1 2012. The FiT is being reduced from 43 pence to 21 pence per kilowatt hours for solar PV installations up to four kilowatt in size.