Govt set to appeal FIT decision - 04/01/2012

People looking to get cheap electricity by fitting solar generators to their home may be following developments in the continuing legal battle over subsidies for the technology.

Last month, the High Court ruled that cuts in the Feed-in Tariffs (FITs) paid to users with photovoltaic panels were unlawful as they were implemented before a public consultation into the plans was completed.

The move saw the amount paid for electricity exported back into the grid fall from 43p/kWh to 21p/kWh for any installations registered after December 12th, which environmental groups and the solar industry claimed would be extremely damaging to the development of the technology.

However, a challenge by Friends of the Earth and solar companies Solarcentury and Homesun saw this decision declared illegal.

Despite the court refusing the government permission to appeal on the grounds it would be highly unlikely to get the ruling overturned, energy minister Greg Barker confirmed this week the government will continue the legal fight anyway.

This was criticised by Friends of the Earth's head of campaigns Andrew Pendleton, who said: "Trying to appeal the High Court's ruling is an expensive waste of taxpayers' money."

He added: "The court says the government has no realistic chance of winning and it will prolong uncertainty among solar companies just when they need reassurance."

Instead, Mr Pendleton called on the coalition to accept the ruling and work with the industry to come up with a clear plan that will reduce FIT payments from February to make them in line with falling installation costs.

This will end uncertainty in the sector and help safeguard thousands of jobs, he continued, as research conducted last year by Element energy suggested up to 29,000 positions could be under threat if the current plans go ahead, while the Treasury would lose up to £230 million a year in tax income.

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