Legal bid to rescue Westcountry’s solar gold rush
The Government faces a legal stand-off with the green energy industry after it confirmed deep cuts to subsidies that threatens a Westcountry “solar gold rush”.
Developers of large-scale “solar farms” across Devon and Cornwall have warned of pulling the plug on hundreds of jobs and multi-million pound investment in the region. But a group of solar companies hope to force the Government into another embarrassing U-turn after winning permission for a High Court review of the decision.
Chris Huhne’s Department of Energy and Climate Change (DECC) claim reform of the so-called feed-in tariff (FiT) was needed after being swamped by massive schemes.
Critics say the review undermines claims by David Cameron and other ministers the coalition would be the “greenest Government ever”.
The revised tariff, which will apply to new installations from August 1, could be de-railed if a High Court hearing takes place before July 29 as expected.
Mark Shorrock, chief executive of South West-based Low Carbon Solar UK, one of those challenging the decision, said the Government’s thinking was “flawed”.
He said: “By their own admission, their proposal is likely to prevent any solar projects above 50 kilowatts (kW) being developed across the UK. This is not the appropriate way to lead the transition to a low carbon economy.”
Boasting the best solar climate in the UK, the Westcountry was tipped to reap many of the benefits of large and community-scale projects at schools and social housing schemes.
They work by harnessing the power of the sun to pump “clean” electricity into the national grid, triggering the Government’s cash incentive.
The new tariff structure means projects of 50kw – the equivalent of putting solar panels on about 20 homes – will lose out by more than 40 per cent, while multi-megawatt arrays will see a 70 per cent-plus reduction.
Solar farms are planned at Trerulefoot in South East Cornwall, one near Launceston and another at a disused tin mine near Truro.
Cornwall Council’s £14 million Kernow Solar Park is expected to press ahead, but the proposals present “some serious difficulties”.
A £10 million solar park in Westleigh, north Devon, is likely to be scrapped. AEE Renewables UK had planned to generate enough electricity to power up to 900 homes.
UK project director Scott Ferguson said: “We are now trying to compress an 18-month project into less than six and would love to build what is a great prospect for the area, but it is not going to happen any time soon.”
DECC launched a fast-track review of its existing solar FiT in March, fearing small domestic installations were being squeezed out.
Energy Minister Greg Barker yesterday said: “Without action, the scheme would be overwhelmed.
“The new tariffs will ensure a sustained growth path for the solar industry while protecting the money for householders, small businesses and communities.”
A group of ten companies and individuals had asked the High Court for a judicial review of the FiT revision process on a range of grounds.
It says no indication that changes to the tariffs were possible before 2013 was given when the scheme was launched under Labour and that targeting larger solar projects is “irrational” given the Government’s green targets.
Some commentators support the reform, arguing FiT had become a “vehicle” for consumers to “subsidise big businesses”. It adds £1 a year on the average household bill, rising to £8.50 a year by 2030.
The new Government has capped spending at 10 per cent below the projected £400 million cost of the scheme.
Huw Irranca-Davies, Shadow Energy Minister, said: “This smacks of a government strong on words, lacking in action and at odds with its stated aim of being ‘the greenest government ever’.”
The Country Land and Business Association claimed rural areas were hit hardest.
William Worsley, the body’s president, said: “Cornwall County Council, in one of the poorest parts of the country, has lost more than £200,000 on its project while support for domestic solar PV installed by richer urban householders has been preserved.”