Tuesday, 24 January 2012

Court of Appeal to rule on FiTS Cut on 25th January

On Wednesday 25th, the UK Court of Appeal is due to decide whether or not the Government (DECC) has grounds for appeal against the December ruling that the rushed cuts to the feed-in-tariff, or not.

If the Court rules in favour of an appeal, then the reduced tariffs introduced on 12th December will stand and it is expected that the industry, lead by Solar Century and Friends of the Earth, will drop their legal challenge. However, should the court rule that the Government does not have sufficient grounds for appeal, then the FiTS will revert back to their pre-cut rates (up 41.3p / kW). Fearing that they would lose the right to appeal, the DECC has already introduced a contingency date of 3rd March, which would see all installations after this date subject to the lower tariffs.

The industry, however, remains split about whether or not a temporary reintroduction of the higher tariffs will be good for business. In the short term, we can expect a mad rush to install as many systems as possible at the higher rate of return, although this may also lead to the chaos and 'questionable' ethics of last November. Either way, we all have to accept and manage the new lower tariff rates from March, regardless of tomorrow's outcome.

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