Subsidies for solar power to be cut by Germany

Germany's government is planning to cut subsidies for solar installations by up to 30 percent due to higher-than-expected demand. The reductions, which could happen within one year, are also down to the scheme proving more costly than initially projected. Germany has been at the forefront of renewable installations in recent years, however the rise in solar projects has surpassed government expectations.

Owners of solar installations in Germany receive a guaranteed above-market price for the electricity they sell to the energy grid. Last year that amounted to a subsidy of around €6 billion (US$7.9 billion), which is financed through a levy on each household’s electricity bill. Concerns have been raised over how the subsidy cuts could affect domestic solar companies, as reductions could come into place as early as next month. Read more ...

FiT reforms causing conflicting opinions

The feed in tariff's (FiTs), are again causing problems for the Government after they announced that they will reform them this has raised conflicting opinions, with one company declaring the reforms favour solar power and ignore wind energy. The government last week announced plans to ensure the future of the Feed-in Tariffs scheme to make it more predictable, stating that transparency, longevity and certainty are at the heart of the new improved scheme.

The DECC announced that the reforms would provide greater confidence to consumers and industry investing in exciting renewable technologies such as solar power, anaerobic digestion, micro-CHP, wind and hydro power. "A proposal to develop a small hydro or wind project can take up to two years to achieve planning consent and a further year to complete. Anaerobic digesters can take just as long. Pre-registration would help smooth this process to guarantee a viable project." Read more ...

The British Government attempts appeal of lost case

Following the loss of the case brought against the British government over the solar tariff issue, the government is now in the court of appeal today attempting to overturn the decision by the High Court that its handling of the solar subsidies had been illegal. The original case was won by Friends of the Earth along with a number of companies involved in solar power installation.

If the Government wins its appeal, the prospects for households and community projects installing solar panels could see repayments change at any stage, making projects potentially unworkable. "This appeal prolongs uncertainty and further erodes industry and consumer confidence," said John Swinney, Director of Business Development, Carillion. The Government's appeal could potentially cost taxpayers tens of thousands of pounds. Read more ...

Solar issue to be challenged by UK government

The recent decision by the High courts that the government cuts to solar power feed in tariffs are illegal, are to be challenged by the government in an appeal confirmed by the Energy Minister Greg Barker. The Friends of the Earth believe that an appeal would be a waste of the tax-payers money and is urging the ministers to focus on helping the solar industry to get back on a stable footing.

The High Court also said that the government had no realistic prospect of winning an appeal. Friends of the Earth's Head of Campaigns Andrew Pendleton said: "Trying to appeal the High Court's ruling is an expensive waste of taxpayers' money. The government must expand the scheme with all the tax revenue the scheme generates, this can be done at no extra cost to bill payers". Read more ...

Government needs to act in solar case

The UK solar industry could face months of "paralysis" because the of the inadequate actions of the government in dealing with the industry. The government needs to act quickly according to a leading renewable energy company.

The double whammy of the High Court ruling that the reduction in Feed-in-Tariffs was “legally flawed” together with a Parliamentary report which labelled the process “clumsy” has further rocked one of the brightest sectors in the UK economy. The Government now faces having to go back to the drawing board in order to put in place a new consultation process to find a feed-in-tariff rate for domestic solar PV schemes more acceptable to the industry. Read more ...

High Court ruling on feed in tariff

Friends of the Earth along with two solar companies has won its legal challenge against the government over the decision to cut feed-in-tariff's for solar power. After only two days in court the Judge ruled that the governments plans were "legally flawed". "These botched and illegal plans have cast a huge shadow over the solar industry, jeopardising thousands of jobs." said Andy Atkins, Friends of the Earth's Executive Director. Read more ...

Court battle continues with Friends of the Earth

The UK government from October 31, 2011 started slashing the feed in tariff incentive payments for households and communities generating electricity through solar power by 50 percent. Friends of the Earth believe that the decision to reduce payments by 50 percent was premature, unfair and unlawful.

Since 2010 there has been about 100,000 new solar powered projects and a major increase in the number employed in this energy sector. But the decision of the UK government to slash the funding on the feed in tariff could cost 29,000 jobs in the solar industry. Read more ...

Legal challenge to stop cuts in feed in tariffs

Two solar companies and Friends of the Earth are presenting their case today at the High court seeking permission to challenge the government plans to cut the feed in tariff subsidies. The court had previously ruled that this challenge could not take place, according to Friends of the Earth. But now Friends of the Earth has been given the go ahead to seek the courts permission to reverse that decision.

The Government recently launched a consultation into feed-in tariffs. In it, it proposed halving payments from December 12 - two weeks before the consultation ends. "We strongly believe Government plans to abruptly slash solar subsidies are illegal. We hope the High Court agrees to allow our case to be heard as soon as possible." said Andy Atkins, Director, Friends of the Earth. Read more ...