The government today lost its attempt to overturn the decision that its reduction, and more specifically the speed of the implementation of the revised Feed In Tariff (FIT) for solar schemes in December 2011, was ruled unlawful.

Back in April 2010 the government introduced the FIT scheme to encourage people to use low carbon technologies to produce electricity, and to reward them by paying a tariff for electricity put back into the grid.  These technologies included wind, biomass and solar PV (photovoltaic).

In December 2011, the government suddenly slashed the FIT for solar PV which had previously attracted a popular high tariff of 43p.  The short notice of this reduction of payment and lack of realistic consultation period left both consumers and solar installation companies feeling let down.  Jobs were lost, component prices artificially hiked and a scrabble to get installations completed before the deadline caused an uproar in the solar industry.

Installation of solar panels then crashed after the deadline of December 12^th leaving companies with a feast or famine situation and many disappointed customers who had failed to meet the deadline.  The adverse publicity and evident large decline in the FIT did little to encourage new takers for microgeneration, as the scheme had initially intended.

Several companies took the government to court, including Daniel Green who is CEO of HomeSun, recently said: “Almost everybody except DECC have appreciated the potential and importance of the solar industry – from the National Trust, the Church of England through to the CBI as well as the British people.

Chris Huhne has now said that he will take his appeal to the supreme court, however the judges at today’s appeal denied him the right to seek a hearing directly, however Huhne now has 28 days to lodge for permission directly.  It remains to be seen where this temporary ray of sunshine for the solar industry and its consumers, will continue to shine.