Feed-in Tariffs for Solar/PV Schemes

The Department of Energy and Climate Change opened itsconsultation on Feed-in Tariffs for Solar PV as part of thecomprehensive review on renewable energy subsidy on 31 October2011.

The intent expressed at the time was that the consultationperiod would last until 23 December 2011 and DECC proposed changesto the Feed-in Tariff for PV Scheme to 250 kilowattsgeneration.

The proposed reductions were proportionally greater forschemes of 10 kilowatts or less with the proposed tariffs beingreduced from 37.8p per kilowatt hour for schemes between 4 and 10kilowatts down to 16.8p per kilowatt hour, from 43.3p per kilowatthour for retro-fit PV panels less than or equal to 4 kilowattsgeneration down to 21p per kilowatt hour and from 37.8p perkilowatt hour for new build PVs of less than or equal to 4kilowatts down to 21p per kilowatt hour.

The DECC, prior to the end of the consultation periodimposed a deadline of 12 December for registration of PVinstallations to benefit from the current higher rate.

The Friends of the Earth and a number of solar companieschallenged the decision by DECC in the High Court as unlawful andjudgement was given in their favour on 21 December with the HighCourt ruling that the proposed modification to the Feed-in TariffScheme which would operate retrospectively wasunlawful.

The DECC indicated that it would be applying to the Court ofAppeal for leave to appeal the decision and the hearing was held onFriday 13 January. Sadly, notwithstanding the collective holding ofbreath by the renewables sector the Court of Appeal has not yetmade a decision.

They have indicated that they are aware of the need for aswift conclusion and hope to have a decision by 9 February butuntil then the status of feed-in tariffs for smaller PV schemesand, indeed, to a lesser extent for larger schemes, remainsuncertain.

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.