The Government has failed to overturn a High Court decision made in December which ruled that its plans to cut solar power subsidy payments were illegal.
The Court of Appeal has unanimously rejected the Government’s appeal, maintaining that its plans to reduce payments for any solar scheme completed after 12 December, 2011 were unlawful.

Friends of the Earth (FoE) and solar firms SolarCentury and HomeSun mounted a legal challenge against the Government decision last December.

According to FoE, the Government is now planning to renew its appeal through the Supreme Court.

Today’s decision means that solar tariff payments will remain at 43.3p (p/kWh) until 3 March when they will fall to 21p.

Andy Atkins, FoE’s executive director, said: “This landmark judgement confirms that devastating Government plans to rush through cuts to solar payments are illegal and will prevent Ministers from causing industry chaos with similar cuts in the future.”

He added: “The Government must now take steps to safeguard the UK’s solar industry and the 29,000 jobs still facing the chop.”

A spokesperson from the DECC said: “The Court of Appeal has upheld the High Court ruling on FITs and we are now considering our options.”

The Renewable Energy Association is calling on all parties to draw a line under the affair and allow the UK solar industry to get back to business. As long as DECC makes no further appeal, installers will at last be able to give customers prices with absolute certainty, and get back to business.

Chief executive Gaynor Hartnell said: “The Government’s action and the subsequent court case had together thrown the solar industry into a state of extreme uncertainty, which was most regrettable. We now want to put this behind us as swiftly as possible, and work with Government and supporters to secure a larger budget for small scale renewable energy generation.”