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Charity threatens government with legal action over cut to solar subsidies

Charity threatens government with legal action over cut to solar subsidies
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Charity threatens government with legal action over cut to solar subsidies5

Finance | Kirsty Weakley | 8 Nov 2011

Friends of the Earth is threatening legal action against the government over plans to cut solar panel subsidies.

The environmental campaign charity has written to the climate change minister, Greg Barker, to say that unless the government amends proposals to reduce the feed-in tariff payments made to buildings generating electricity through solar panels by 4pm on 11 November, it will start court proceedings.

Friends of the Earth believes the government’s actions are unlawful because it had previously said the payments would remain unchanged until April 2012. It fears that projects planned for between December and April could be abandoned.

In the letter Friends of the Earth calls on the government to maintain current tariff payments for existing projects until April 2012 and to extend the consultation period until February 2012.

Policy and campaigns director Craig Bennett said: “The government is breaking the law with its plans to fast-track a solar industry kill-off – as well as jeopardising thousands of jobs and countless clean energy projects across the country.”

Announcing the proposals at the end of October, which would affect installations completed after 12 December this year, Barker said it was necessary so that the solar industry “doesn’t fall victim to boom and bust”.

He added: “The plummeting costs of solar mean we’ve got no option but to act so that we stay within budget and not threaten the whole viability of the feed-in tariffs scheme.”

A statement from the Department of Energy and Climate Change said: “We’re consulting on proposed new tariffs for a reason – to protect consumers from footing the bill for excessive subsidies. This is a live consultation and it will be open for people to comment until 23 December.”

It confirmed that it had received two letters threatening legal action which it would respond to “in due course”.  It would not say who the scond letter was from.

Housing association solar programme in doubt

The Peabody housing association’s solar scheme is one project that has announced it will have to reduce its solar panel scheme.

It had developed a solar scheme as a key part of its strategy to help residents reduce fuel costs and stay out of fuel poverty but now thinks it will have to cut the number it installs by about 50 per cent.

Chief executive of Peabody, Stephen Howelett, said there were also wider implications: “If we cut short our scheme, contractor jobs will be lost and Peabody jobs will be lost. We had planned to place young apprentices within our scheme. These too will be lost.”

He added that investor confidence may be the “greatest cost” and that: “We are very concerned that investors will be reluctant to get behind green initiatives.”

 

Ben Mccabe
employe
build something beautiful
10 Nov 2011

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Jim Gillespie
Chief Executive
Institute of Domestic Energy Assessors
9 Nov 2011

I applaud FoE for taking a stand against this government.

Cameron's "greenest government ever" statement is now looking as ridiculous as Brown's "no more boom and bust". Speaking of which, that is exactly the phrase that Greg Barker used when he tried to justify this ill thought out, knee jerk revised feed in tariff reduction date. Little does he know that this is exactly what his annoucement has already caused. Consumers getting ripped off by unscrupulous solar companies inflating their prices for a "quick killing" whilst nationwide there are already shortages of inverters and roof mounting kits in particular. Solar companies are now working day and night to get installations completed and signed off before this ludicrous deadline and then what? By Xmas a large number of companies may well go into administration and tens of thousands of people joining the dole queue. Our country is tettering on the brink of a double dip recession and this "out of touch" government meddle with the only sector of our economy that was booming. Complete and utter madness.

The ramifications of this lunacy will be far reaching; in particular in relation to the much publicised "Green Deal". What right minded entreprenuer or business would want to commit any time, effort or money into Green Deal now when it is abundantly clear to everyone that we simply cannot rely or TRUST a single thing this government says or does anymore.

I was disappointed to read that the Solar Trade Association didn't hold out much hope of a successful legal challenge, but understand where they are coming from. The only way to successfully get a Judicial Review here is if we can prove that this action is in breach of primary legislation. I personally think the best hope we have of getting this decision reversed lies with the EU. When the previous Labour government signed the EU Directive for 20:20:20 they gave the EU a 10 year forecast of feed in tariff rates and predicted take up by both the domestic and commercial sector; to demonstrate their commitment to achieving our 15% target. I am led to believe that the Tories didn't consult with the EU either before springing this upon us and therefore the EU could argue that they have acted illegally too because they are altering the previous governments commitment to the EU directive without consulting the EU beforehand.

When Labour lost the last general election I thought then they would be in opposition for at least two terms of office; now I'm not so sure. I'm convinced that the Tories have now alienated themselves with the very people they have traditionally relied upon as voters. The elections next year will be very interesting indeed.

Malcolm Withers
Quantity Surveyor
The Dean & Chapter of Canterbury
9 Nov 2011

Canterbury Cathedral is proposing to install modest solar arrays, we are having to re think our policies.

Photon
9 Nov 2011

Last Monday's announcement has already led to:
1 some installers closing to new business last Friday and encouraging consumers with installations booked for New Year to bring their date foreward
2 a mad scramble for available UK stock
3 one distributer reportedly increased price by 10% on day of announcement
4 less efficient/reliable panel stocks are being sold to meet demand
5 no guarantee that an installation order placed now will meet the Dec 12 deadline
6 The govt have maintained the FiT to April and produced a 2 tier system
In effect the Apr 2011 FiT ends on 12 Dec

In the interests of 'transparency' I hope Greg Barker will publish the cost
of producing elec / KwH from
a. single wind turbine
b nuclear power station
c gas powered station
d domestic roof PV installation
and the % of elec national elec consumption provided by domestic PV

Fredfred
8 Nov 2011

Apparently there is a company who is a major importer of Solar PV panels, who has 40ft containers on their way from China right now worth something like £2.5M, at present uk prices. They left China before the announcement of the tariff cut and are expected to get here in the UK after the cut off date. They will be stuck with stock that they can't sell, as demand and the value of the panels will have plummeted, and will leave employers and creditors unpaid.
Some house builders, councils and larger organisations have committed to (contracts) installing solar PV systems to get the present FIT, which will now lose significant money.

This decision should not have been made so quickly, as processes take months to fulfill. The previous April deadline was announced about a year (I think) before the planned tariff change. 5 weeks is quite simply ridiculous...

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