Feed-in Tariff

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Miliband hits out at government ‘broken promises’

Labour leader Ed Miliband has heavily criticised the Conservative party for ‘messing up’ the renewables industry and reneging on promises made to pursue green policies whilst in opposition.

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Greg Barker defends FiT appeal

Energy Minister Greg Barker has defended the Government’s legal move to appeal to the Supreme Court over the Feed-in Tariff fiasco.

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Friends of the Earth condemn supreme court appeal

The Government is expected to appeal to the Supreme Court later today (Tuesday 21 February 2012) against a High Court ruling that its plans to cut solar subsidy payments are illegal.

More Feed-in Tariff

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Government submits final FiT appeal

Energy Ministers have submitted their final appeal in an attempt to overturn a High Court ruling that cuts to the Feed-in Tariff were unlawful.

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New energy secretary to publish consultation results

New Energy Secretary Ed Davey must announce steps to safeguard the 29,000 solar jobs currently threatened by disastrous Government proposals to reform the solar subsidy scheme when he publishes the results of a public consultation into the plans on Thursday (9 February), says Friends of the Earth.  

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FiT appeal unwelcome, says Envirolink

Nick Storer, ceo for business support organisation Envirolink, has hit out at the Department for Energy and Climate Change (DECC) over its plan to go to the Supreme Court following its recent legal defeat over the proposed timing of the reduction in the Feed-in Tariff (FiT). Speaking as a delegate at the Green Power Forum held at Salford University in January, Storer said that the solar PV industry would remain in a state of flux for as long as the prospect remained of an eventual government victory in the case. “We are now in a very strange situation which is causing an enormous amount of uncertainty in the industry and I’ve had a lot of phone calls from people asking ‘what’s going on?’,” said Storer. “If DECC do get leave to appeal in the Supreme Court, it could be in six months time which is not good. If they win, anyone who has taken the gamble of installing now will lose out. What we’ve got is a six month period of uncertainty.” He added: “People felt that the principle of proving that the government broke the law (by reducing FiT before the end of the official consultation period) was important but, what would have been better was to give them a wrap on the knuckles but then leave the 21p rate. I think it will be the uncertainty which is really damaging and the government should be held to account for that. “It’s doing no-one any good at the moment and we will have to see if DECC appeal. We are also getting closer to the 2015/16 period when the coal-fired power stations will be switched off and we will face power cuts and all they are doing is spreading uncertainty.”

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CBI respond to FiT decision

The Confederation of British Industry (CBI) today responded to the decision by the Court of Appeal to uphold an earlier ruling that the Government’s change in policy on Feed-In Tariff (FIT) payments was ‘legally flawed’.

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DECC set to appeal FiT ruling

Despite being refused leave to appeal to the Supreme Court by three appeal judges this morning, Energy Secretary Chris Huhne has confirmed the Government will still seek permission to go the Supreme Court. The Government wants to overturn a High Court ruling that planned cuts to the Feed-in Tariff were unlawful. In a statement, Cabinet Minister Huhne said: “The Court of Appeal has upheld the High Court ruling on FITs albeit on different grounds. We disagree and are seeking permission to appeal to the Supreme Court. “We have already put before Parliament changes to the regulations that will bring a 21p rate into effect from April for solar pv installations from 3 March to help reduce the pressure on the budget and provide as much certainty as we can for consumers and industry. “We want to maximise the number of installations that are possible within the available budget rather than use available money to pay a higher tariff to half the number of installations. Solar PV can have strong and vibrant future in UK and we want a lasting FITs scheme to support that future and jobs in the industry.” John Cridland, CBI Director-General, said the further appeal was wrong, adding: “The judgement should be used to draw a line under this saga, which saw the Government scoring a spectacular own goal and confidence in the renewables sector undermined. “We must bring certainty back to this high growth sector. Looking to the future, the Government should guarantee the rate applicants will receive earlier in the process, for all the technologies covered by the feed-in-tariff, to give buyers the confidence to proceed.” Earlier today, fellow DECC Minister Greg Barker wrote on his Twitter account: “Win, lose or draw today, important we move forward together, drive down costs + step up deployment”.

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Court rules against government

Industry leaders have called on the Government to now draw a line under the Feed-in Tariff fiasco after the Court of Appeal today unanimously ruled Secretary of State Chris Huhne had overstepped his powers with plans to rush through sudden cuts to solar tariff payments. Now campaign group Friends of the Earth, which helped bring the original successful court challenge, say any Government move to appeal again to the Supreme Court will create yet more uncertainty for solar firms. And the organisation has urged defeated Ministers to concentrate on safeguarding the industry rather than wasting more time and money on further appeals. 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 – and will prevent Ministers from causing industry chaos with similar cuts in future. “The Government must now take steps to safeguard the UK’s solar industry and the 29,000 jobs still facing the chop. “Ministers must abandon plans to tighten the screw on which homes qualify for solar payments – and use the massive tax revenues generated by solar to protect the industry. “Helping more people to plug into clean British energy will help protect cash-strapped households from soaring fuel bills.” John Cridland, CBI Director-General, said the Government should not take the case to the Supreme Court as now confirmed, and added: “The judgement should be used to draw a line under this saga, which saw the Government scoring a spectacular own goal and confidence in the renewables sector undermined. “We must bring certainty back to this high growth sector. Looking to the future, the Government should guarantee the rate applicants will receive earlier in the process, for all the technologies covered by the feed-in-tariff, to give buyers the confidence to proceed.” Juliet Davenport, CEO of Good Energy, added: “The credibility of the way the FIT budget is set has been seriously damaged, and the government must reform the tariff to prevent this boom-and-bust situation from happening again. “FIT is a great way to give people more control of their energy bills, so it’s no surprise that the scheme has been popular – it should not be a victim of its own success. “Now the government is looking at other ways of reducing uptake such as proposed minimum energy efficiency standard which will be unattainable for many households. The government’s decision to provide a replacement deadline on 3rd March at least means we know what tariff projects registered before 1st April will get – and will probably result in another mini-goldrush in the next few weeks. “But we still don’t know what support projects registered after April 1st will receive.” Solar Trade Association chairman Howard Johns is calling for a line to be drawn under the affair to allow the industry to get back to business. He said: “Hopefully today’s result will draw this episode to a close, and mean that one of the only growing sectors in the UK can get back to work. “The Government’s appeal against the original ruling has created huge uncertainty for the thousands of small businesses in the sector, and we sincerely hope that the Government chooses not to take this further by appealing against this result.” David Hunt, a director with leading renewable energy company Eco Environments, said: “This is an almighty kick in the teeth for the Government, but a fantastic result for consumers who have either gone ahead with an installation since December 12 or are keen to do so now. “The phones have already started ringing with homeowners keen to cash in on this mini gold rush. Given that the cost of Solar PV installations has dropped dramatically since December 12, consumers can now achieve breathtaking returns on investment.” The full consultation on the FIT rates for solar and other technologies is due for release on February 9 which should give a clear picture of the rates from April this year and beyond. David added: “We would also hope that the consultation will confirm whether or not homes considering an installation from April will need an Energy Performance Certificate of Grade C or above to claim the top FIT payment – or be subject to a much lower rate. “We trust that after the fiasco of recent months over the introduction of lower FIT rates, the Government will heed the warnings of the solar industry and remove the stringent EPC requirement for homes which would price the majority of the population out of even considering an investment in solar technology.” And Phil McVan, MD of Myriad CEG Power, added: “The stop, start nature of what has happened in the solar industry as a result of the Government’s actions is exactly what businesses don’t want at a time when they are trying to juggle limited resources and lack of credit from the banks with meeting green energy commitments. “It has meant people have been unable to plan effectively for the future because they don’t know when the sands are going to shift. “The Government should be working to minimise the damage to the industry, ensure that poor and disadvantaged communities don’t miss out on the real benefits of solar energy and that robust businesses have an environment in which they can prosper and help the UK meet its green energy targets.” Renewable Energy Association chief executive Gaynor Hartnell supported the calls for the Government to move on. “The Government’s action and the subsequent court case had together thrown the solar industry into a state of extreme uncertainty, which was most regrettable,” she said. “We now want to put this behind us as swiftly as possible, and work with Government and supporters to secure a larger budget for small scale renewable energy generation. “In reality, Government is well aware that it would be incredibly unwise to reduce payments to renewable energy producers after they had commissioned their projects, as it knows what immense damage that would do.”

Further Reading

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Government contingency plans announced

The government has provided much needed clarity on how it will respond to the imminent court decision on when proposed cuts to Feed-in Tariff incentives can come into effect. It proposes that, should the appeal be defeated, the December 12th 2011 deadline would move to March 3rd 2012 meaning that anyone installing and registering a system before March 3rd would be eligible for the 43 p/kWh tariff for 25 years (for installations less than 4 kW). After March 3rd these installations would be entitled to the tariff of 21 p/kWh (less than half), which would remain as initially indicated and would not be cut further as some had predicted. Large installations, with between 50 kW and 250 kW of capacity, will see feed-in tariff payments cut to 12.9 p/kWh. Mid-sized installations with 4-10 kW will see tariffs cut from 37.8 p to 16.8 p/kWh, while installations while 10-50 kW will see payments cut from 32.9 p to 15.2 p/kWh. However, if the government wins its appeal then December 12th as a cut-off date will remain. Graham Russell, managing director of Viessmann, said: “This holding statement is great news for those who had already planned solar PV but became uncertain about it last year. Despite all the confusion and very clouded messages coming from the government, home owners have a chance, if they react quickly, to enjoy higher tariffs of 43.3 p/kWh until March 3rd. Homeowners should still strongly consider installing solar PV as even the worst case scenario of 21 p for 4 kW installations is still a great return and if homeowners act before the March 3rd deadline, they can install without any requirement for their home to meet an EPC level, requiring remedial work for most homes in the UK.“