The Government's Plan of Halving the Support for Solar Installations Might End Up in Court

Green organizations and the companies which operate on the market of solar energy announced that the government's intention of decreasing its financial support for the development of this industry might be challenged in court.

Government's representatives generated the anger of stakeholders in this field of activity after they have announced that a dramatic cut of the feed-in tariff subsidies for solar panels is expected.

Authorities say that the change will start being implemented next year, at the beginning of April. As a consequence, new feed-in tariffs will reach only half of their present value.

Players in the industry can still benefit from the good numbers offered by the government until December 12. The companies launching projects registered after the establish deadline won't know for sure the rates that they will receive.

Officials from enterprises affected by this future measure argue that this short-term strategy doesn't allow the solar industry to adapt to the new conditions available on the market.

"The whole industry has contracts, staff, purchase commitments, stock - all have now been massively compromised by this short-term knee jerk. There is not even any recognition that the industry will need some time to adjust to such a change," has affirmed Jeremy Leggett, chairman of Solarcentury.

Also, the green organizations involved in this matter will try to challenge this initiative in court, after questioning its lawfulness.

If the government goes along with its plan, officials say that major projects which have been designed 18 months ago will be affected by this strategy in the near future.

“We appreciate this will be difficult for companies affected, but what we want is an enduring future for the industry.

“If we left things as they are the feed-in tariff budget would be eaten up entirely, full stop, and that would be even worse for employees in this sector and those working on other technologies too,” declared a Department of Energy and Climate Change (DECC) spokeswoman.

Nevertheless, if the government insists to implement this measure which will certainly affect the profit margins of several major players in the industry of solar installations, the stakeholders will feel compelled to take this matter to court.