Update on Solar PV Feed-in-Tariffs

 “I know this is a difficult time for the sector and I want to do as much as I can to end the uncertainty created by the legal challenge.” – Greg Barker Janurary 19^th 2012.

The above statement was followed by a court case challenging the timing and reduction of the feed-in-tariff. The Court of Appeal handed down a negative judgement on the Government’s appeal against an earlier decision by the High Court. Thus, technically, the old FITs were reinstated, 43.3p for domestic systems less than 4kWp.

DECC have announced that they will now appeal to the Supreme Court. Their statement of 26^th January 2012 follows:

"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.”

Systems installed today on the basis of the proposed 21p/kWh tariff represent an excellent return on investment for households, similarly commercial installations will deliver good returns owing to reductions in material costs passed down the supply chain. There remains a possibility that household tariffs could return to 43.3p for systems installed and FIT registered pre March 3^rd 2012.  Clearly a return of the old tariff for new systems would be a huge bonus but our recommend­ation to installers and consumers alike is to contract on the basis of the new proposed FITs.