The UK government will clash with green energy companies at the Court of Appeal tomorrow about claims it acted unlawfully over the sudden, “cynical” ending of solar subsidies in 2014.
Solarcentury and Lark Energy are furious that the Department of Energy & Climate Change (DECC) withdrew the solar renewables obligation two years early.
The two companies are appealing, having lost a court case in conjunction with two other energy businesses, Orta Solar Farms and TGC Renewables, in late 2014.
The government launched its plans to end RO for big projects with a consultation in May 2014.
When the closure of the scheme was later confirmed, it was decided that solar companies which had not met certain criteria by the time the consultation started – such as having planning permission – would not qualify for the remaining subsidy, even though this was to run until April 2015.
The claimants allege this lack of grace period for firms that had spent money and built business plans based on the subsidy was retrospective and unfair.
These businesses, they argue, were not given sufficient warning to get their paperwork in order so they could still qualify.
However, the High Court ruled in late 2014 that the changes were fair and refused a judicial review.
Lark managing director Jonathan Selwyn said the government’s timing was a “calculated, cynical ploy [that was] designed to create the maximum disruption in the market and with immediate effect, which is why we pursued the case in the first place”.
Solarcentury head of public affairs Seb Berry said: “Without investor and stakeholder confidence in policy, risky projects will cost a lot more or not be built at all.”
A DECC spokesperson said: “We continue to support the low-carbon sector but this needs to be driven by competition and innovation, not subsidies.”
Image: sxc
Solar RO challenge goes to appeal
Court to listen again to companies' grievance on DECC decision
By EBS