“Victory”, High Court rules in favour of Feed-in Tariff campaigners

A High Court judge has ruled in favour of an application by Friends of the Earth and two solar companies – Solarcentury and HomeSun – for permission to challenge Government plans to cut the Feed-in Tariff for solar PV.

The appeal ruling now means the organisations can submit a legal bid to block the Government’s decision at a further, urgent hearing next Tuesday and Wednesday.

Friends of the Earth also asked the High Court to cap its potential legal costs for the case. International rules specify that costs should be limited in public interest cases on the environment.

The legal challenge centred around Government plans to slash feed-in tariff subsidies – payments made to households and communities that generate green electricity through solar panels – on any installations completed after 12 December this year.

The Government is currently running a consultation into feed-in tariffs – but the 12 December cut-off point comes two weeks before the consultation ends.

Friends of the Earth says this premature decision is unlawful and has already led to unfinished or planned projects being abandoned.

Mr Justice Mitting, sitting in London, said today the proposals had given rise to “economic risk” for those engaged in the solar industry and the challenge should be heard as a matter of urgency next week.

Friends of the Earth’s Executive Director Andy Atkins said following today’s successful hearing: “We’re delighted the High Court has given the go-ahead to our legal challenge – we believe Government plans to abruptly slash solar subsidies are not only unfair, but illegal.

“These proposals have already had a disastrous impact on the solar industry – fledgling clean businesses have had the rug pulled from under their feet and a shadow hangs over thousands of jobs.

“Ministers must change direction and put the solar industry at the forefront of building a cleaner, safer future.”

And John Faulks, Company Secretary, Solarcentury added: “We are pleased with the decision here at Solarcentury. But it is only the first step of the legal challenge. The Court agrees that we have a case to argue and has given us permission to challenge DECC.

“Next we need to persuade the Court that DECC has acted illegally. That will happen as soon as possible. The legal challenge is only part of the wider campaign by Solarcentury and the solar PV industry to get the Government to recognise the strategic value of solar PV in the energy mix and maintain viable support to build a successful industry.”

He added: “The industry was expecting a cut in tariff and would have actively engaged with DECC to create a sustainable scheme including accepting significant but workable cuts. A cut of over 50% that occurred in just six weeks and before the end of a consultation period is cynical and irrational.

“Win or lose on Tuesday next week the industry still has to sort out the chaos DECC have already caused. They seem to have learned nothing from Spain, France or Germany about how to develop a viable renewable energy industry for the future benefit of the country.”

HomeSun CEO, Daniel Green, said: “We are delighted with this decision. Solar has been the most popular energy efficiency and microgeneration measure that this country has ever seen. Additionally it is providing around £280 million in tax and PAYE income for the treasury as well as providing work for over 30,000 people many of whom are now waiting to hear their fate.

“HomeSun believes that having an ‘effective date’ in the middle of a consultation is not only unlawful but it could set a dangerous precedent for all future government consultations.“

Solar is a growing, successful industry. The premature cuts could cost up to 29,000 jobs and lose the Treasury up to £230 million a year in tax income, a report commissioned by Friends of the Earth and Cut Don’t Kill – an alliance of solar firms and consumer and environmental organisations – revealed last month.

Construction firm Carillion Energy has already placed its entire 4,500 workforce on statutory redundancy notice because of the Government’s proposals.

Ahead of this afternoon’s ruling, Friends of the Earth’s Executive Director Andy Atkins said: “We strongly believe Government plans to abruptly slash solar subsidies are illegal, we hope the High Court agrees to allow our case to be heard as soon as possible.

“We’ve also asked the High Court to cap our potential costs. International rules say this should be allowed in public interest cases on the environment – we can’t afford to bring a challenge if we face unlimited liability for the other side’s legal fees.

“In a time of economic gloom, the solar industry has been one of the UK’s brightest success stories, enabling homes and communities across the country to free themselves from expensive fossil fuels.

“It’s short sighted for Ministers to move the goalposts and prematurely pull the subsidy – this will cost tens of thousands of jobs, bankrupt businesses and reduce Treasury income by up to £230m a year.”

With thanks to Click Green

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