The government has been told by the High Court that its proposed cuts to the tax-free income, which it had hitherto guaranteed to householders who installed solar energy systems, were illegal.

Friends of the Earth, together with two solar energy companies Solarcentury and HomeSun, challenged the cuts in a case heard by the High Court on 21 December, on the basis that the cuts' implementation was unlawful. It seems it didn't help the government's case that its decision to make the cuts was apparently announced 11 days before the formal consultation period was due to expire.

It should be noted that the Tariffs paid to those who install solar energy systems (along with other categories of renewable energy installation) are not paid out of government funds but by the energy companies, so are effectively subsidised by their 'ordinary' customers who suffer higher bills when paying for electricity and gas.

It seems unlikely that the cuts to the Feed In Tariffs will not go ahead in the end, although presumably later than planned. Perhaps the people at the Department for Energy and Climate Change might have time to speak to their colleagues at the former HM Customs and Excise first, before trying again - 3-year cap, anyone?

Article Added Tuesday, 03 January 2012 | 864 Hits

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