Solar panel
Government plans to cut incentive payments for householders who install solar panels have been ruled “legally flawed” by a high court judge.
The ruling opens the door for a judicial review that could force the government to delay its plans, potentially allowing thousands more people to claim the higher subsidy.
The judgment on Wednesday came after a challenge by Friends of the Earth and two solar companies who argued that the government’s decision to cut the feed-in tariff – which allowed householders to earn money for extra electricity they generated and provided to the National Grid – with only a few weeks’ notice was premature and unlawful.
The government announced in October that it would cut the subsidy with effect from December 12. This was 11 days before the consultation ended.
Bristol City Council said in October that the decision would reduce potential jobs growth and impact on its energy efficiency and renewable energy plans.
Council leader Barbara Janke said the timing and speed of the announcement was “short-sighted and very frustrating” for authorities like Bristol.
“At a time when we should be supporting growing industries, this cut in tariffs could threaten jobs in the solar energy sector – one that is very strong in Bristol and the South West,” she said.
“This is why we are calling on the government to introduce a gradual reduction in the tariff and implement it over a time scale that supports local authorities and the low carbon industry.
“We are all in agreement that we want to reduce carbon and encourage renewable industries, and Bristol is in the vanguard of cities doing so. We therefore need a framework in place that encourages these ambitions.”
The council says there are 30 solar companies in the Bristol area – of which about half have registered over the last year and have carried out almost 500 installations in the city this year alone.
Following yesterday’s ruling, Friends of the Earth’s executive director, Andy Atkins, said: “These botched and illegal plans have cast a huge shadow over the solar industry, jeopardising thousands of jobs. We hope this ruling will prevent ministers rushing through damaging changes to clean energy subsidies – giving solar firms a much-needed confidence boost.”
Lawyers for the Department of Energy and Climate Change immediately moved to apply for permission to appeal the judge’s ruling.
Meanwhile, a report by MPs on two influential select committees have said today the cuts were “clumsily” handled and may have fatally damaged a growing industry which had the potential to provide tens of thousands of jobs.
“There is no question that solar subsidies needed to be urgently reduced, but the government has handled this clumsily,” said Tim Yeo, chair of the energy and climate change committee.
“Ministers should have spotted the solar gold rush much earlier. That way subsidy levels could have been reduced in a more orderly way without delivering such a shock to the industry.”
A stay of execution, at least. That's something!