Government will have 'solar industry destruction' on its hands if it pursues supreme court appeal

UK: The Government will be guilty of the “destruction of the solar industry” if it challenges today’s Court of Appeal ruling over feed-in-tariffs.

David Hunt, a director with leading renewable energy company Eco Environments said: “The Government had the chance today to restore consumer and industry confidence in the aftermath of the Court of Appeal ruling.

“However, by arrogantly pursuing an appeal, which could take many months to resolve, it is willing to jeopardise the future of hundreds of companies and tens of thousands of jobs.

“It is a callous and disgusting course of action which has the potential to wreck what should be one of the UK’s most dynamic and exciting industries.

“If the Government does not step back from the brink, it will have the destruction of the renewable energy industry on its hands and will ultimately pay a heavy price at the ballot box.”

Earlier in the day, homeowners were given a short-term window of opportunity to enjoy a solar power “gold rush”. A Court of Appeal ruling means that any solar PV installations installed, commissioned and registered between December 12 last year and March 3 this year will receive the higher feed-in-tariff rate of 43.3p for the next 25 years.

Customers who register on or after March 3 will qualify for the higher rate until April 1 when it will drop to 21p.

The only way this would change is if the Government were to be successful in any appeal to the Supreme Court withal installation post December 12 reverting to 21p rather than the higher rate of 43.3p.

Hunt added: “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. In year one the return is 18 per cent, while the average return over 25 years is a staggering 39 per cent if you include inflationary increases in FIT payments and electricity price increases. Customers will also be able to enjoy a payback period of just three years.

“The Government wants to prolong the legal process to maintain uncertainty and confusion among consumers and to try to keep the level of installations low. We believe it is highly unlikely any Government appeal will be successful, but the worst case scenario is that consumers will receive 21p and the most likely scenario that they will receive 43.3p.”