After Solar Power Portal this morning reported confirmation of the new feed-in tariff rates, the Department of Energy and Climate Change (DECC) has published a ministerial statement confirming the new feed-in tariff rates for solar photovoltaics installations completed between December 12 and April 1, 2012. In a bid to provide certainty to the somewhat frustrated industry, Government has set out its ‘Plan B’ feed-in tariff proposal in the event that it loses its current court appeal.

On October 31 last year Government outlined its intention to cut feed-in tariff rates from April 1, 2012, but with a cut-off date of December 12, 2011. This reference date has since been challenged by a judicial review, to which the Government has responded with an appeal of the decision of the High Court, which has yet to be granted.  

The furore surrounding this court case has caused a lot of uncertainty in the UK solar market, with many pulling out in fear of what the future holds, with others are simply frozen until a decision is made either way.

Today, after calls from industry to bring some clarity to the situation, DECC is laying before Parliament some draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008,  make provision for a the new rates to go through from April 1, 2012 with an eligibility date on or after 3 March. 

"We continue to stand by our original proposal.  However,I now that the undertainty while we await the Court's decision is difficlt for the industry.  A retetion of the 43p triff could also create substantial risks to the FiT's budget if our appeal is unsuccessful.  For these reasons, we believe it is prudent to bring forward our dfecision on one aspect of the consulktation: the proposals for new solar PV tariffs", said Secretary of State, Chris Huhne.