Still in Turmoil after Latest Court Decision

Last week, the Court of Appeal ruled in favour of the High Court’s decision (made earlier in January 2012) that the UK Government’s attempt to cut the Feed-in Tarriff (FiTs) subsidy before the end of its consultation period was illegal.

Rather than accepting the decision as final, however, DECC is considering its options – including lodging an appeal with the Supreme Court.

Many in the UK Solar industry are worried it will lead to many more months of second-thoughts and tentativeness from home and business owners thinking of installing Solar.

In a report on www.businessgreen.com last week, Energy and Climate Change secretary Chris Huhne is quoted as saying:

“……we cannot rule out the possibility that lower tariffs could be applied to installations which became eligible for FiTs on or after the proposed reference date. It is important consumers are aware of this.”

A Government spokesperson stated that the Government is very clear that from the 1^st April 2012, all tariffs will be 21p/kWh.

Last November, DECC announced that as of the 12^th December 2011, the Feed-in Tariff would be reduced to 21p/kWh on all installations, thus throwing the UK Solar industry into chaos and resulting in cancelled contracts, redundancies and bankruptcies.

Legal action was announced when Friends of the Earth, Homesun and Solarcentaury got together to take the Government to court over its decision. In December, the High Court ruled against the Government’s decision. DECC then mounted an action with the Court of Appeal, which was also unsuccessful.

Riello is continuing to promote Solar energy as a viable and cost-effective option for the future of power generation. Riello UPS supplies AROS solar inverters from 1.5 to 500kW for residential and commercial applications. They are fully customisable and can be monitored via the equipment we supply. For more information, visit our website.

Majority of Renewable Energy Association’s members think tariff should be cut by 25%

So, there is still no clearer harmony over FiTs after the landmark legal victory in December 2011.

Since the Government’s announcement in December that it would slash the tariff for small-scale solar projects (up to 4kW in size) from 43.30/kWh to 21p/kWh, the industry has delivered a backlash of angry protest as installers have had contracts cancelled and companies have had to close or make serious redundancies.

But it would seem, from comments in the press by Gaynor Hartnell, the Chief Executive of the Renewable Energy Association, that there is disharmony in the industry. Hartnell responded to the high court decision by warning that the impact of the ruling could further increase instability.

The high court found that the proposed cut to the Feed-in Tariff Scheme for solar power by the UK Government in the middle of a consultation period was unlawful. The case had been brought by environmental organisation Friends of the Earth alongside solar groups. Following the ruling, DECC (Department for Energy and Climate Change) lodged with the Appeals Court and a hearing has been set for this Friday (13^th January).

I think it’s sad that it has come to this. It’s clear that the Feed-in Tariff scheme, which was meant to benefit individuals, small-scale energy users, schools and community projects has been exploited and often misdirected. In my view, there are faults on both sides (the Government and the industry). At the end of the day the ones who are suffering are individual energy consumers, who are missing out on the benefits of harnessing solar power and generating their own electricity, but the ones who are suffering the most are the honest, hardworking installers whose very livelihoods are being jeopardised.

I do believe, however, that the industry will bounce back. It has too much momentum behind it now to fade away and there are too many advantages solar power can offer (separate to the FiTs scheme), which is what the industry has to focus on now rather than relying solely on FiTs – irrespective of the Court of Appeal’s decision.

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But has the Government put the breaks on too soon?

I’m a great believer in the fact that there is so much potential for Solar technology in helping the UK reach its carbon targets and provide a huge boost to the economy but like many in the industry, I fear the coalition’s recent turnaround on the FiTs (Feed in Tariff Scheme) may have inadvertently put the breaks on and undermined investor confidence. I also think it could be damaging to the wider UK renewables market.

Ernst and Young recently published a report: The UK Solar PV Industry Outlook for 50kW+, which claims:

• Non-domestic solar could thrive in the UK without subsidy from 2017.
• UK solar projects are expected to be economic under 2 ROC support between 2012 and 2013.
• The UK solar industry has the potential to create 15,000 jobs by 2015.
• Solar can help large businesses to decarbonise.

The sun shines on the righteous

Meanwhile, I am gladdened (and amused) to read that Coventry Cathedral has become the first in the UK to install solar panels on its roof. The flagship project is part of the city’s efforts to get into good shape for the 2012 Olympics – and the many thousands of visitors expected at the football games scheduled to take part at the Ricoh Arena.

Coventry Cathedral’s solar installation consists of an array of 178, 50kW photovoltaic panels due to be installed anytime soon. Unlike many other cathedrals that have steep, pitched roofs and shady parapets, the Grade-1 listed St. Michael’s Cathedral (the third one in Coventry’s history) has a fairly flat roof, which means the panels can be fixed and tilted to maximise their solar energy generation potential.

This goes to show the true versatility of solar installations. Solar cells can be adapted to pretty much any situation, provided there is the space and direct sunlight – whether or not you have ‘friends in high places’.