What’s the Feed-in Tariff, Kenneth? Confusion Reigns in UK as Government Appeals Ruling on Solar Subsidy Cut

January 5th, 2012 by Ravinder Casley Gera

Well, this is turning into a great little saga for us journalists — although, it’s much less fun for those involved. Just before the holidays we told you how a court in the United Kingdom had ruled the government’s proposals to cut the feed-in tariff for solar power by less than half was “legally flawed.” The problem, the judge said, wasn’t the cut itself, but its timing — the government had said that the cut would apply to all solar installations registered after 12 December, even though they were still officially consulting on whether to make the reduction until 23 December.

Not surprisingly, the judge, Justice Mitting of the high court, ruled this out of line and ordered a full judicial enquiry. Now it’s emerged that the UK Government plans to appeal the ruling. Climate Minister Greg Barker made the announcement on Twitter, saying, “Will be talking on BBC Radio Sussex shortly re #solar #FITS, our decision to Appeal + danger of staying at 43p til April.” The government’s proposal is to cut the feed-in tariff from 43p to 21p.

“Budget means 4 every 1 new taker @ 43p, 2 homes won’t get it at 21p,” Barker continued. All well and good, perhaps, but the question is: what exactly is the rate now? Officially, it remains at 43p, but if the government were to win its appeal, homeowners and businesses registering their solar installations now would see their rates drop from under them.

Energy consultant Charles Perry told The Guardian that the situation meant damaging uncertainty for the UK solar industry. “In opposition the Conservatives promised the three Cs: confidence, clarity and continuity,” he said. “DECC must learn from the outcome of the judicial review and improve on all three.” (The Conservative party is the largest party in the UK Parliament, and the dominant one in the coalition. Greg Barker is a Conservative, though his boss Chris Huhne, the Secretary of State for Energy and Climate Change, is from the smaller Liberal Democrat party.)

The campaign Cut, Don’t Kill, which calls for a smaller cut in the feed-in tariff, estimates the government’s proposals will threaten 25,000 jobs. The government argues that the current high rate will rapidly use up funding for supporting solar while enriching a small number, while a lower rate will be more sustainable. In the long run, the rate is going down no matter what. The government’s initial consultation called for a rate cut from April 2012, and the bringing-forward of the date seems to have been in response to budget concerns. But until the precise date of the rate cut is fixed by the courts — which could come as soon as next week — it seems this strange saga is set to rumble on.

Source: The Guardian | Solar panels on home via shutterstock

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Tags: Electricity, Energy

About the Author

Ravinder Casley Gera is a London-based freelance journalist passionate about climate change, development and technology. He has written for the Daily Express, Excite.co.uk, and the Fly. He blogs at ravcasleygera.wordpress.com.