Pictured: Nichola Jenkins
A recent controversial proposal could see the government cutting
FIT paymentsfrom up to 43.3p/kilowatt hour to just 21p/kWh for
solar PV installations completed after 12 December 2011 or 3 March
2012 if the Government loses its appeal against the High Court. The
Birmingham office of law firm, Cobbetts LLP, warns many
stakeholders will be impacted.
Solar installers will be particularly affected by the cuts, with
many investors cancelling plans they might have had to fund
retrofit installations or new developments. At Carillion Energy
Services, 4,500 jobs are at risk as a direct result of the
proposal.
However, RSLs will also face significant cuts. Those who can
fund their own solar installations will not receive the anticipated
43.3 p/kWh (for retrofit) or37.8 p/kWh (for new build
installations), but will instead be entitled to just 16.8p/kWh as
they are to be classed as aggregated schemes that will only receive
80 per cent of the FIT payment.
RSLs that had planned to partner with a solar installation
company under a rent-a-roof scheme may see their projects cancelled
or their financial return significantly reduced. Where projects are
cancelled in the light of the proposed cuts, tenants will feel a
real impact, as they were expecting their electricity bills to be
reduced by approximately a third.
Nichola Jenkins, associate at Cobbetts in Birmingham, commented:
"Very few people expected the tariff cuts to come so soon or cut so
deep. The government seems to have fast-tracked the proposals
without giving any real warning, time toinform tenants or
opportunity to put new plans in place, and there has been a real
outcry. Environmental group Friends of the Earth, and Solar
companies Solarcentury and HomeSun, have already successfully
argued in the High Court that the 12 December cut off date, which
was two weeks before the end of the consultation period on the
proposals, is unlawful. The Government intends to appeal the
ruling, but is yet to be allowed to do so."
She continued: "Even at this late stage in proceedings, the
future remains unclear. The government is facing real opposition
from major organisations both in the private and not-for-profit
sector. Until these challengeshave been seen through to their
conclusion, however, RSLs need to expect theworst and prepare for
the cuts."
Cobbetts LLP has a team of lawyers dedicated to solar PV and low
carbon matters with significant expertise and experience in
advising solar installers, RSLs and investors in respect of solar
PV projects. Their expert understanding of the emerging energy
policy framework means that they can structure energy projects in a
way that matches the needs of the energy market and maximises the
opportunities for public and private funding.
For more information about Cobbetts, please visit their website
here: www.cobbetts.com