The Court of Appeal today ruled that under the Energy Act 2008 the government does not have the power to change feed-in tariff rates retrospectively.
This rejection of a DECC appeal means that higher (pre December) rates for solar projects will most probably continue to apply until a government compromise deal comes into effect. Reduced tariff rates, as previously proposed, will then apply from March 3 onwards and cannot be changed again without a further full consultation.
As it stands, this decision injects some much-needed clarity back into the solar PV sector after weeks of procrastination.
However, the government has sought a further appeal at the Supreme Court, which could yet impact upon the rates from December to March. It will be known whether they receive this in the next few days.
Chief NFU renewables adviser, Jonathan Scurlock, said "Farmers and growers are advised that the solar industry is definitely back in business for 2012, and that attractive rates of return are available across a range of scales. NFU members should shop around and negotiate with confidence for a competitive price on solar installations."
More detailed government plans on what size of solar industry they anticipate and their future ambition for the solar sector will emerge on February 9, including a ‘cost control framework’ for solar and its proposed future rates for the other FIT technologies.
- Edward Burt - 25/01/2012
A pity the government can't bring itself to admit defeat gracefully but has chosen to create yet more uncertainty. It really is no way to look for an economic recovery!