Ever since the Department of Energy and Climate Change (DECC) announced their proposals to cut the feed-in tariff (Fit) scheme for solar subsidies at the end of October, the solar industry has been in limbo, with renewable energy supporters and green enthusiasts watching from the sidelines as the Government and fractions of the solar industry bitterly battled each other over FiTS.

Although DECC is threatening to drag the sorry saga out even further by taking their fight to the Supreme Court, one would hope that some level of stability has been restored – at least for the time being – thanks to a unanimous decision by three judges that the way in which the Government acted to slash solar subsidies was indeed unlawful.

By losing the appeal, DECC must stick to its contingency plan, revealed for the first time last week. It means anyone installing a solar PV system of up to 4kW will be entitled to receive the higher FiT rate of 43.3p/kWh for the 25 year duration of the scheme.

In what is likely to mirror the previous rush to get systems installed and registered before the 12 December deadline last year, anyone interested in installing a small-scale solar PV system will have up until 3 March to benefit from the higher subsidy rate, before the tariff drops to 21p/kWh. Systems registered on or after 3 March will only be eligible for the higher rate until 1 April.

With a renewed optimism, the once booming UK solar market could be set to receive its second wind, with installers and solar companies bracing themselves – at least in the short term – as people scramble to install small-scale solar PV systems over the next five and a bit weeks. However there is one stumbling block.  If the Government is granted permission to appeal to the Supreme Court – which has the potential to cause even more delays – the solar industry will continue to remain in limbo, essentially in no better position than it was before the Court of Appeal announcement.

Commenting on the outcome, Jeremy Leggett, chairman of Solarcentury – one of the challengers who took the Government to court – said:

“A historic judgement has been made today, one that should be welcomed by the entire renewable energy industry. Today we have reminded Government that it will be held to account when it acts illegally and tries to push through unlawful policy changes. We would much prefer not to have taken this path but ministers gave us no choice.”

Mr Leggett added that the aim now was to work together to restore confidence and stability in a market that has been “badly undermined by Government actions since October.”

Speaking just prior to the ruling, Greg Barker – the minister for energy and climate change – agreed that win or lose, the Government and the solar industry has to move forward to drive down costs and step up deployment.

Ever since the Department of Energy and Climate Change (DECC) announced proposals to slash solar subsidies by more than half, the Government and certain fractions of the solar industry have been at loggerheads, with the battle eventually ending up in the High Court.

Tomorrow’s announcement – due around 10.30am according to a report published by Solar Power Portal – should hopefully go some way towards installing some much needed calm and stability to an industry that has been floundering in confusion and uncertainty since DECC’s proposals were announced almost three months ago.

Essentially tomorrow’s ruling will go either two ways. If the Government appeal ends up not being granted by the Court of Appeal – or even if the appeal is granted but DECC still ends up losing – solar PV systems installed on or after the original 12 December 2011 deadline will be entitled to receive a rate of 43.3p from the feed-in tariff (FiT) for the lifetime of the scheme. Should this scenario come to fruition, the Government has agreed to fund the higher payments. The lower rate – 21p – wouldn’t come into effect until 3 March 2012.

However, if an appeal is granted and won – overturning the initial ruling that cuts were “legally flawed”, then any solar systems that were installed on or after the December deadline will achieve the 43.3p rate until 1 April 2012, after which they will drop drastically, down by more than half to just 21p.

One way or another, all will be revealed tomorrow.

The Department of Energy and Climate Change (DECC) is still locked into a legal battle following the announcement last October to reduce the feed-in tariff (FiT) scheme for solar PV by more than 50% from 12 December.

In a much needed attempt to end rising confusion and bring about some long overdue clarity to the UK solar industry, it’s hoped their “Plan B” proposal will be a step forward in helping to restore faith in the once booming market.

If the Government ends up losing its current appeal, any solar PV installation that has been built and is eligible for FiTS before 3 March 2012 will receive the higher 43.3p rate for the 25 year duration of the FiT scheme, with the Government agreeing to fund the higher rate payments.

However, if the Government ends up winning their appeal it won’t pay the higher subsidy rate for any installations completed after the 12 December 2011 deadline, according to Climate Minister Greg Barker.

“Today we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3 March. However, we are still pressing ahead with our appeal and if successful, we retain the option of introducing a December reference date.

“In the circumstances we believe this gives the industry as much certainty as is possible.  And it puts us in a better position to protect the budget for everyone involved.”

The news has been well received by the industry, with Friends of the Earth – who were involved in bringing about the legal action against the Government – pleased the Government is at long last “taking steps to sort out some of the uncertainty that’s crippling a thriving UK industry”, allowing firms to finally plan for the future.

The Department of Energy And Climate Change is hoping to publish the outcome of its consultation by 9 February at the latest.

To read DECC’s official ministerial statement in full go to www.decc.gov.uk

The delay is bad news for an industry which is desperate to end the months and months of uncertainty that has followed since the Government announced its proposals to cut the feed-in tariff (FiT) scheme last October.

After last month’s decision, which saw a High Court judge rule that the Department of Energy and Climate Change (DECC) had acted unlawfully when it came to slashing solar subsidies, Friday 13th January saw the Government appeal the ruling. But after more than 7 hours of discussion, the day ended just as it began – with the solar industry left in a continued state of limbo.

Following the outcome, DECC’s official statement said:

“The Court of Appeal has not yet decided whether to give permission for an appeal or made a judgement on the FiTs case. The Court will wrap up the decision on permission for an appeal and a possible judgement if an appeal is allowed in the next few weeks. Once the outcome is known we will consider our options and make an announcement on the way forward to provide clarity to consumers and industry.”

It’s highly unlikely that a judgement will be made this week, however the Court of Appeal has said it hopes to reach a decision by 9 February.

By not even agreeing as to whether an appeal can actually be heard, the Court of Appeal is essentially just prolonging the uncertainty still hanging over the UK’s solar industry.

While the waiting game continues, the solar industry – once booming in the UK – and its supporters remain in limbo.

If you’re superstitious, the day is often connected with tragedy and misfortune and now it seems the most superstitious of days will signal the final showdown for solar subsidies in the UK.

On the 13 January the Court of Appeal is scheduled to hear the Government’s appeal following the ruling last month which ended with a judge concluding that the Department of Energy and Climate Change’s proposals to slash solar subsidies before the consultation period had ended was unlawful.

If their application for permission to appeal is granted, then the appeal will be heard on the same day, ending weeks and weeks of confusion, misery and more and more uncertainty that has thus far blighted the UK solar PV industry.

At the moment, solar installers are somewhat stuck in limbo when it comes to which feed-in tariff (Fit) rate their customers will be entitled to, since the Government announced plans at the end of October to cut tariff rates by more than half, taking them from their current of 43.3p per kWh down to 21p per kWh.

The legal action, instigated after DECC officially announced their plans to make the FiT changes, is being lead by Friends of the Earth, alongside Solarcentury and Homesun.

Creeping into eighth position with a 2% share of the global solar power market, it’s worth noting that the final figures for the rest of the world are still to be gathered.

Solar PV installation figures globally look set to reach a record 23.8GW. The analysis, compiled by independent research firm IHS has seen Italy nudge Germany into second place, which sees them taking a 28% share of the market compared to Germany’s 25%, according to IMS Research.

Witnessing a 20% decrease in 2011, 2010′s winners Germany had to endure reductions to their feed-in tariff (FiT) scheme, which no doubt accounted for their drop down the ladder.  Taking third place in the table compiled by IHS is the US, followed by China, Japan and France. Other countries to make it into the top ten are Australia, India and Canada.

In 2010, when the feed-in tariff was launched, the UK recorded a total installed capacity of 65MW. Last year saw 693MW capacity below 50kW added, with an extra 200MW accounting for systems in excess of 50kW.

Since a judge ruled on 21 December that the way in which the Government went about its proposals to cut the feed-in tariffs (FiTs) the Department of Energy and Climate Change (DECC) was adamant that they would appeal. Yesterday that appeal was lodged, with the Government continuing to claim that cuts to the solar PV subsidy scheme are essential to encourage more people to install the renewable energy technology and maintain security in the industry long term.

“We have lodged grounds of appeal with the Court of Appeal,” said a DECC spokesperson. “We hope that permission will be granted for an appeal and that we can secure a hearing as soon as possible so that we can provide clarity for consumers and industry on the way forward following the consultation.”

The Government believes that the judge’s ruling was premature, given that a final decision over the cuts had not been made and nothing was set in stone until DECC had undertaken a complete analysis of the feedback received during the consultation period. DECC argues that the 12 December deadline is necessary, and claims that reducing the tariff payments is the only way to ensure as many people as possible have the opportunity to benefit from small scale low carbon generation technologies and the income generated from the FiT scheme. Without the cuts, DECC claims the solar industry in the UK will not have longevity because the budget for the scheme would be considerably reduced, draining the funds for future solar PV generation.

Results of the first stage of the feed-in tariff consultation – which closed on 23 December – won’t be published until the end of the month at the earliest. It’s been reported that around 3,000 responses have been received.

According to the Department of Energy and Climate Change (DECC), in the week following the FiTs (12 to 18 December) solar PV installations were decidedly paltry.

With just 812 systems registered, the figure plummeted by a massive 97% on the previous week’s figures, fuelled by a rush of installers desperate to beat the 12 December deadline. Solar PV systems installed between these dates accounted for 125.93MW of the country’s solar capacity.

Previously released figures revealed that between 4 – 12 December the number of installations registered for solar subsidies reached a colossal figure – 29,937 to be precise.

It was announced at the end of October that changes were afoot for solar PV subsidies and in just six weeks, 384MW of solar capacity was installed. Of 2011′s total installed capacity, 43% was implemented after DECC made its shocking revelation to put in place the FiTs cuts. But following a solar industry challenge, a High Court has since ruled that the way the Government set about slashing solar subsidies from 43.3p kWh to 21p kWh was in fact “legally flawed.”

With the UK’s solar capacity standing at 759MW, the UK features on the list of the top ten solar markets worldwide.

In other news, during a radio interview on BBC Surrey breakfast show the Minister for Energy and Climate Change has today defended his decision to appeal the 21 December High Court ruling. Greg Barker said the cost of solar PV subsidies in comparison are five or six times those of onshore wind subsidies.

Commenting on the claim from Freetricity chairman Paul Williams, that the Government had “promised” the 43.3p rate would apply until April 2012, Barker defended his position, saying: “If we saw an unsustainable bubble, we would be obliged to act.”

The UK solar industry was left reeling when the Department of Energy and Climate Change (DECC) confirmed plans to slash solar subsidies by more than half. The ruling by Mr Justice Mitting has been welcomed by the solar industry, who regard the decision as a victory for green energy.

Two heavyweights in the industry – Solarcentury and Homesun – teamed up with environmental group Friends of the Earth, to challenge the Government’s handling over proposals to slash solar subsidies from the current rate of 43.3p per kilowatt hour of electricity generated, to just 21p. The new rate would come in to play from 12 December, and the solar industry has been working around the clock for the past six weeks to try and beat the deadline.

The challenge has ruled that the 12 December deadline – a mere two weeks before the consultation period into FiTs ends – is not only unlawful, but that it essentially makes a mockery out of the whole consultation process. By upholding the challenge, the High Court has ruled that anyone who registers for FiTs between now and the end of March 2012 is legally entitled to the current 43.3p rate for the full 25 years.

However, the Government has pledged to appeal the decision as soon as possible, and if their appeal is successful, the December deadline could be reinstated. That would mean anyone who registered after 12 December would be eligible for the higher rate until 31 March, before dropping down to the reduced rate.

Commenting on the ruling, Daniel Green, chief executive of Homesun said: “There are so many winners who will benefit from this decision. To have an ‘effective date’ in the middle of a consultation must never happen again because it makes a mockery of the very essence of a consultation. By finding this policy illegal, the Judicial Review has stopped a dangerous precedent being set.”

While the court ruling is a positive step forward, uncertainty continues to cloud the solar PV industry, with DECC determined to stick to its guns, arguing that the cuts are necessary to ensure the industry’s survival.

The battle may have been won, but the war between the solar industry and the Government still rages on.

Two solar companies – Homesun and Solarcentury – together with environmental group Friends of the Earth took the Government to court over its handling of the proposed cuts to the feed-in tariff (Fit) scheme.

After a court hearing lasting two days, the judgement – made by Mr Justice Mitting – will be welcomed by the solar industry, which has taken something of a battering since news of the cuts was announced at the end of October. Given the ruling, a judicial review could potentially mean that the Government will have to relaunch its consultation on FiTs.

The Department of Energy and Climate Change (DECC) has been refused permission to appeal against today’s decision.

More to follow…