The government has released a ministerial statement detailing the effects of proposed changes and legal challenges to solar PV tariffs. Feed-in tariffs were to be affected by a cut effective at the start of April this year, though a legal challenge was mounted over the government’s consultation period. The statement clarifies some of the confusion surrounding feed-in tariffs in the short-term.

In December, the High Court ruled that the government’s consultation timetable was ‘legally flawed’ and since that time there has been no clear position on the level of solar PV tariffs available, either following the December cut off date or after 1st April, when proposed changes would have taken effect.

The Department of Energy and Climate Change appealed against the High Court’s decision, but the Appeal Court failed to reach a decision on 13th January, merely "reserving judgement" and increasing the possibility of a legal stalemate lasting into February.

A coalition of Friends of the Earth and two solar installers secured the technical victory last year, however, since the ruling, solar installers have had no information on whether customers would receive lower feed-in tariffs or not. Solar companies have said their sales have dropped off as a result.

The government’s ministerial statement laid before parliament some draft modifications; the reduced tariffs will only apply from an ‘eligibility date’ of 3rd March, unless the government wins its appeal, which is ongoing. If this is the case, the eligibility date for the newly cut tariffs will be 12th December 2011, as originally planned.

The feed-in tariff review scheme was launched following the unanticipated popularity of the renewables. The review process and resultant cuts to feed in tariffs have been criticised for favouring large energy companies at the expense of households, communities and farmers turning to generating clean energy. The next phase of the review will look at tariffs for AD, hydro and wind and will be the subject of a consultation in February.

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