Industry remains in dark over feed-in tariff rates after Climate Minister Greg Barker confirms appeal against High Court ruling

The government is preparing to appeal a High Court decision that branded its plans to rush through cuts to solar tariff payments as “legally flawed”, leaving the industry in the dark over the current level of incentives for new solar installations.

The Department of Energy and Climate Change (DECC) will tomorrow file an appeal against last month’s ruling by Mr Justice Mitting, who said it would be illegal for the government’s proposed cuts to have an “effective date” of 12 December, two weeks before the consultation officially ended on 23 December.

Mitting said DECC had until 4 January to request an appeal, but warned any appeal would have limited chances of success.

Climate Minister Greg Barker today confirmed on Twitter that his department would meet the appeal deadline, reiterating that the government remains committed to halving the level of incentives available for solar installations to ensure the scheme does not exceed its budget.

“Budget means 4 every 1 new taker @ 43p, 2 homes won’t get it at 21p,” he wrote.

Barry Nutley of Viridis Energie Consultants commented – “This was, perhaps, to be expected? Whilst (it would appear?) that the Government have very little chance of winning the appeal, it throws the industry into further turmoil, and does nothing for consumer confidence in solar?!”.

He added, “In reality, most people I speak to within the industry did not want this court case to go ahead, as they had accepted 21p and had already worked towards (and achieved) a solution going forward. Those that supported, and pushed for, the initial court case may have inadvertently scuppered the future of the solar industry, as what the Government’s reaction will be (win or lose) is unclear? The fear is, that it could be worse than expected post April?”.

I’d be interested to hear your thoughts on how this will affect the solar industry going forward?