Feed In Tariff Challenge “Victory” – Good news, or bad??

The news today, that the Government’s plan to reduce the FIT tariff earlier than expected is unlawful, has received “mixed” reviews from those in the industry?
Here’s why::
Firstly, I believe that, on the face of  it, it is good news – Many of our clients thinking of installing solar panels, had simply decided against it, largely because the Government’s actions have been met with a level of mistrust? And going forward, if they could do this, what could they do in a few years? What this decision shows, is that not even the government are “above the law”, and this goes some way to improving consumer confidence?
However, let’s not get too carried away?
Let’s not forget, that this decision has only meant that the 12/12 deadline is unlawful. It doesn’t mean that the proposed cut to 21p (at some point) is either unlawful, or wrong? We still have a consultation process to go through?
As we know, the consultation period closes on the 23rd December (only 2 days away), and any decisions made from that consultation are still subject to change? We have heard that the FIT will not be reduced below 21p before April 2012? But, now the Government plan to challenge today’s decision, anything could still happen?
Even with today’s ruling, there is still no guarantee that the 43.3p tariff will remain until April 2012 (after the consultation period has closed, they could still impose an “early” reduction?). And there is no guarantee that 21p will be offered after this point (they could reduce it further?).  Have we shot ourselves in the foot here?
Here’s what’s been happening (typically) within the industry:
Between the beginning of November, and the 12th December, installers have had a field day! In the main, they have installed 3-5 times the amount of solar panels than they would have anticipated? And because of the “rush”, they have had little “competition”?
Since the 12th, they have been able to negotiate price reductions with their suppliers (most suppliers have “issued” new price lists at least once). These prices are significantly lower than they were pre 12/12, and mean that an installer will be able to offer their clients an install that will still give them a 7% – 10% ROI in the first year (much higher than the Government suggest!?).
After working their “socks off” to get installations completed by 12/12, they are now taking a well earned rest (have earned a fair few quid), and have the necessary “tools” to hit the market in the New Year, based upon 21p???
However, today’s announcement has (potentially) changed things yet again??
There are a number of scenarios?
The Government’s appeal is refused? The consultation period is carried out lawfully? There is (another) small window of opportunity for installations to take place and receive 43.3p? Come April, the FIT reduces below 21p??!
All of the above could be wrong? But, whatever the outcome/s, today’s result hasn’t helped stabilise the industry?
What we can say, with some certainty, is that Barker and Huhne haven’t a clue?
Greg Barker’s  response tells all – “We disagree with the Court’s decision. We will be seeking an appeal and hope to secure a hearing as soon as possible. Regardless of today’s outcome, the current high tariffs for solar PV are not sustainable and changes need to be made in order to protect the budget which is funded by consumers through their energy bills.!
We Understand that! We agree that the tariff should be reduced! But, we don’t agree on the imposed time-scales (and legally, we are right)!
Ultimately, both Barker and Huhne should resign… They have “cocked up” big time, and shouldn’t be allowed to continue within their roles. If this level of incompetence was displayed within the Private Sector, they would be “moved” to a position less “controversial”?
On the “flip side”, maybe Homesun and Solar Century (and FOE), have just dealt the solar industry a further blow? Perhaps, they should have accepted the decision? Dropped the court case? Settled “out of court”? And worked with the Government to ensure stability further down the line?
These 2 companies may have the financial clout to “ride out the storm”? But, have other, smaller, installers (the ones they claim to support) the same “deep pockets”?? Will it affect the RHI??? Only time will tell???
If you require any support or advice on your solar,or other renewable energy, project, then please contact Viridis on 0845 437 4484, or email info@viridisec.co.uk.

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