Press release

High Court to hear solar legal challenge application

5 December 2011

The High Court has agreed to hear applications by Friends of the Earth and two solar companies - Solarcentury and HomeSun - for permission to challenge Government plans to slash financial incentives for solar electricity on Thursday 15 December 2011.

Confirmation of the hearing follows an earlier High Court ruling [Friday 25 November 2011] rejecting permission for a legal challenge. The organisations are now asking the High Court to reverse the decision and allow a hearing into the legal challenges as soon as possible.

Friends of the Earth is also asking the High Court to cap its potential legal costs for the case. International rules specify that costs should be limited in public interest cases on the environment.

The legal challenges centre around Government plans to slash feed-in tariff subsidies - payments made to households and communities that generate green electricity through solar panels - on any installations completed after 12 December this year. The Government is currently running a consultation into feed-in tariffs - but the 12 December cut-off point comes two weeks before the consultation ends. Friends of the Earth says this premature decision is unlawful and has already led to unfinished or planned projects being abandoned.

Solar is a growing, successful industry. The premature cuts could cost up to 29,000 jobs and lose the Treasury up to £230 million a year in tax income, a report commissioned by Friends of the Earth and Cut Don't Kill - an alliance of solar firms and consumer and environmental organisations - revealed last month. Last week construction firm Carillion warned 4,500 workers their jobs are at risk because of the Government's proposals.

Friends of the Earth's Executive Director Andy Atkins said:

"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. 

"We've also asked the High Court to cap our potential costs. International rules say this should be allowed in public interest cases on the environment - we can't afford to bring a challenge if we face unlimited liability for the other side's legal fees.

"In a time of economic gloom, the solar industry has been one of the UK's brightest success stories, enabling homes and communities across the country to free themselves from expensive fossil fuels. 

"It's short sighted for Ministers to move the goalposts and prematurely pull the subsidy - this will cost tens of thousands of jobs, bankrupt businesses and reduce Treasury income by up to £230m a year."

 Notes to editors:

1.    Friends of the Earth's legal challenge to cuts in solar incentives is part of its Final Demand campaign, which calls for energy we can all afford and a public inquiry into the power and influence of the Big Six energy companies. Find out more at www.foe.co.uk/finaldemand.

2.    More than 15,000 people have asked the Government to keep supporting clean British energy - join them now at www.foe.co.uk/finaldemand

3.    On Monday 31 October 2011 the Government launched a public consultation on plans to slash small-scale solar power subsidies by more than 50 per cent. http://www.decc.gov.uk/en/content/cms/news/pn11_091/pn11_091.aspx

4.    Friends of the Earth isn't opposed to solar tariff payments being cut in line with the falling costs of installing solar panels - and it was always envisaged that payments would be reduced over time when we first campaigned for the scheme. But the environmental campaigning charity says the scale and sudden, unplanned nature of this cut will devastate the industry

5.   The Government's decision to slash solar funding was described by the CBI as an 'own goal' last month (Thursday 10 November 2011) http://www.cbi.org.uk/media-centre/speeches/2011/11/john-cridlands-speech-to-cbi-east-midlands-annual-dinner/

6.   Solar cuts will cost Treasury millions and destroy up to 29,000 jobs: http://tiny.cc/tgv77

7.    Friends of the Earth says the Government's actions are unlawful because:

•         It will unfairly cause the abandonment of numerous planned solar schemes that would have been completed between 12 December and April 2012;

•         The wording used in the Government proposals indicates there is little prospect that Ministers will keep an open mind about representations made while the consultation period is ongoing - something they are legally obliged to do.

8.    Friends of the Earth is calling on the Government to:

•         Maintain existing tariff payments to all qualifying solar schemes completed by 1 April 2011

•         To extend the consultation period to Friday 17 February 2012, at the earliest.

9.    Examples of solar energy projects that have either been scrapped or are in jeopardy are available from Friends of the Earth's press office - please call 020 7566 1649/ 07712 843 209 for more information.

10.    Friends of the Earth believes the environment is for everyone. We want a healthy planet and a good quality of life for all those who live on it. We inspire people to act together for a thriving environment. More than 90 per cent of our income comes from individuals so we rely on donations to continue our vital work. For further information visit www.foe.co.uk

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust