Government Loses Solar Feed in Tariff Appeal
Judges reject government's appeal but ministers could still go to Supreme Court
By Jessica Shankleman and James Murray
The Department of Energy and Climate Change (DECC) has lost its appeal against a solar feed in tariff High Court ruling which branded its plans to rush through cuts to solar subsidies as illegal.
Three Court of Appeal judges this morning upheld the original decision that the government had acted unlawfully in proposing cuts to feed-in tariffs for solar installations completed after December 12 last year, on the grounds the consultation on the proposed changes to the scheme did not close until December 23.
The ruling was celebrated by the solar industry, which has consistently argued that ministers should not be allowed to impose "retrospective" changes to the feed-in tariff incentive scheme.
"Four Judges, including three in The Court of Appeal, have now called the Government's actions illegal," said Daniel Green, chief executive at Homesun, one of the company's behind the legal action. "That's a four-nil victory and a decisive ruling that government may not make retrospective changes to the FIT because, as Lord Justice Moses concludes, to do so 'would be to take away an existing entitlement without statutory authority'."
His comments were echoed by Jeremy Leggett, chairman of Solarcentury, who writing on Twitter urged the government to now accept the ruling and work to build "a counter-austerity industry in solar".
However, a DECC spokeswoman said the government was still "considering our options" in the wake of the ruling, prompting speculation the government could seek to lodge a second appeal with the Supreme Court.
Reports that the government could yet seek to appeal again to the Supreme Court prompted an angry reaction from solar industry campaigners.
Writing on Twitter Seb Berry of Solarcentury said: "Appeal Court rejected DECCs application to appeal to the Supreme Ct. DECC can still apply directly but on what possible grounds?"
Others have suggested that the government may consider an appeal in order to ensure demand for new solar installations remains low in the run up to March 3 - the new cut off date for the higher rate of feed-in tariff incentives.
If the government does not appeal against today's court ruling the level of incentives available for installations completed before March 3 will be confirmed at 43p/kWh. Ministers are concerned that the ruling could spark a month long gold rush as households and businesses rush to take advantage of the higher rate, eating further into a feed-in tariff budget that has already been exceeded for this year.
In contrast, the continued uncertainty caused by a further appeal would stop solar firms advertising that the current feed-in tariff rate is set at 43p/kWh, potentially dampening demand until the incentives are halved on March 3.
