Solar companies ready for legal action over FIT reduction

As the solar panel industry tries to figure out a course of action following the government’s announcement of Feed-in tariff reductions, some companies aren’t prepared to lie down.

A group of leading installers have confirmed they will also be taking legal action over the decision. They will attempt to block the government’s December 12 cut-off date for solar PV.

The group have applied to the courts in a bid to land an injunction which would prevent the Department of Energy and Climate Change reducing the FITs. Their argument is that the sudden change is illegal, causing damage to customers and the industry.

This group aren’t the first to speak of legal action, as Friends of the Earth are looking for a judicial review to block the deadline.

The solar companies say the December date is “illegal, irrational and unreasonable” and don’t think any changes should be implemented until a full review has been carried out.

They also say many large contracts have had to be cancelled because of the announcement, including many major Housing Association projects which would have been completed by March 31, 2012. The Housing Association has lost thousands of pounds preparing for the scheme too.

In a joint statement the solar companies said: “We expected a proper and fair consultation on the review of FITs. We expected to have the time to plan for the next stage of the development of the market. We were all expecting a new tariff from April 2012 or at worst at the very end of a proper “fast-track” process.

“Instead we get a ready-made decision which seriously harms the solar industry and everyone in it and gives us less than six weeks to save the businesses we have built up over multiple years.”