Solar energy feed-in-tariff reduction postponed

Date: 26/01/2012

The Government has been forced to postpone plans to reduce the solar energy Feed-In-Tariff by half.

The Court of Appeal upheld a High Court ruling that Government cuts to the solar Feed-in Tariff were unlawful.

In October the government announced it would cut the "feed in tariffs" paid to homeowners from December 12.

Those installing solar panels after this date would receive 21p per kilowatt hour rather than 43.3p.

Environmental campaigners argued that insufficient notice had been given.

The ruling means current feed-in tariffs are now guaranteed for 25-years and will increase each year in line with inflation.

The court judgement also means customers who have had solar panels installed and or registered ahead of the March cut-off point may still receive the original 43p rate for 25 years.

Today’s unanimous decision raises the prospect of a fresh rush for installation to be completed in the next six weeks.

It is also a victory for environmental campaigner Friends of the Earth and two other solar companies, Solarcentury and HomeSun, which said the plans to halve subsides were economic problems.

Jeremy Leggett, Chairman, Solarcentury said today: "An historic judgement has been made today, one that should be welcomed by the entire renewable energy industry.”