Camden Friends of the Earth: Feed-in tariff fears after Government U-turn, Jan 25th to March 23rd
Friday, March 23rd 2012
THE government has failed to overturn the High Court’s decision over its planned changes to feed in tariff rates.
The Supreme Court has today said it could not challenge a High Court ruling that blocked the halving of payments to households generating solar energy.
The ruling means the government has failed in its final bid to reduce solar payments for any scheme completed after 12 December last year.
In response Energy and Climate Change Secretary Edward Davey, said: “We are disappointed by the decision of the Supreme Court not to grant permission to hear this case. But the Court’s decision draws a line under the case.”
The government said it will now focus its efforts on ensuring the future stability and cost effectiveness of solar technologies.
Friends of the Earth Executive Director Andy Atkins said: "This is the third court that's ruled that botched government solar plans are illegal - a landmark decision which will prevent Ministers causing industry chaos with similar subsidy cuts in future.
"The Coalition must now get on with the urgent task of restoring confidence in UK solar power.
Caroline Flint MP, Labour's Shadow Energy and Climate Change Secretary, said the ruling exposed “chaos and incompetence” at the heart of the Department for Energy and Climate and “proves that the government’s cuts to solar power are not just bad for the public, bad for jobs and growth, and bad for the environment, but unlawful.”
Thursday, February 9th 2012
THE government has today confirmed it will slash payments to feed-in-tariff schemes by half.
From 1st April this year the new tariff of 21p/kWh will take effect for all domestic-size solar panels installed on or after 3rd March 2012.
It will also lower the level of energy efficiency required to qualify for subsidies and offer reduced rates for multiple installations.
Climate Change Minister Greg Barker said: “We are proposing a more predictable and transparent scheme as the costs of technologies fall.” He added, “This will ensure a long-term, predictable rate of return that will closely track changes in prices and deployment.”
Friends of the Earth have hailed the proposals as a “significant improvement” on their original plans.
But they’ve warned the government's unclear solar road map has left a “dark cloud” hanging over thousands of jobs.
Andy Atkins, Friends of the Earth’s Executive Director said: “Unless these plans are revised schools, estates and communities won't be able to save money by plugging into clean British power.”
Industry insiders have also voiced concerns about today’s announcement claiming it hints at further cuts in the future and threatens thousands of jobs.
Howard Johns, Chairman of Solar Trade Association said today’s announcement is a “huge step forward” but warned the sector’s short term picture remains “challenging.”
He claimed the government’s proposal will inflict real damage to businesses and said: “29,000 people are employed in the sector and many of these jobs are once more at risk.”
Earlier this month the Court of Appeal confirmed that government proposals to cut solar tariff payments for schemes completed after 12 December 2011, before official consultation into the move had closed, was unlawful.
The government has since taken leave to present its case to the Supreme Court.
Friends of the Earth have said the government's refusal to drop its legal challenge only adds to the “cloud of uncertainty hanging over the industry.”
Thursday, January 25th 2012
THE government’s abrupt changes to feed-in tariff rates risk thousands of local authorities’ plans to install solar panels on social housing, claim Friends of the Earth.
On 31 October 2011 the government announced plans to alter the cut-off date of feed-in tariffs for new solar PV installations to 12 December 2011.
According to Friends of the Earth, this proposal will put ‘tens of thousands out of work’ and increase fuel poverty for people living in social housing.
If implemented the new rates will drop from 43.3p to 21p per kilowatt hour – casting severe doubts on whether solar schemes are financially viable for local authorities in London.
Camden’s Cabinet Member for Sustainability, Cllr Sean Birch, said the government’s decision posed a ”significant challenge” to their renewable energy ambitions and was “bad news for homeowners, the low carbon economy and the planet.”
In response to the tariff turnaround, Havering Council pointed out that ‘many schemes will no longer be financially viable and contracts will not be able to be honoured.’
The Local Government Association has raised its concerns, estimating it will put councils at financial risk to the tune of ‘hundreds of millions of pounds.’
Solar installation companies have also hit out at the hastily slashed solar support.
Carillion, the construction company has warned 4,500 UK staff they could lose their jobs as a result of the government’s decision to halve subsidies on solar panel installations.
The feed-in tariff is seen as a cost effective scheme for people living in social housing.
It offers residents the chance to benefit from their own ‘green electricity’ by selling surplus energy back to the government - slashing their annual electricity bill by about £190.
In a bid to stave off the proposed cuts Friends of the Earth launched a legal challenge at the High Court.
In December the court ruled the government’s plans were illegal, saying ministers could only alter the payments after going through Parliamentary procedures - allowing industry time to plan for change.
The government subsequently appealed the decision - creating further uncertainty for the future of solar in the UK.
After much pressure ministers confirmed on 19 January they will fund the higher rate payments for any panels installed by 3 March, irrespective of the outcome of the appeal.
On 25 January the latest efforts by the government to reduce solar subsidies failed on appeal – but said it will seek leave to take the case to the Supreme Court.
The ruling means that, subject to any further appeal to the Supreme Court, solar tariff payments will remain at 43.3p (p/kWh) until 3 March 2012 when - following government moves last week - they will fall to 21 pence.
Friends of the Earth's Executive Director Andy Atkins said: “This landmark judgement confirms that devastating government plans to rush through cuts to solar payments are illegal.”
He also said the government must “help protect cash-strapped households from soaring fuel bills” and urged ministers to take steps to “safeguard the UK's solar industry and the 29,000 jobs still facing the chop.”
