SINCE the day it was elected Britain’s coalition Government has fallen over itself to be seen as pro-business – putting the private sector front and centre of its plan for economic recovery.
How odd then that the same Government has gone to extraordinary lengths to upset and disrupt the UK’s renewable energy sector – a sector which it had itself identified as key to future growth.
Last week saw the latest instalment in the feed-in tariffs farce in which the Government has, according to the director-general of the CBI, "scored a spectacular own goal".
Last week the Court of Appeal rejected a bid by Energy Secretary Chris Huhne to overturn a High Court ruling that its plans to cut subsidies for solar panels on homes were unlawful.
The court rejected Mr Huhne’s claim that he had the power to go ahead with the controversial scheme.
Opponents say, if allowed, the proposals would put 29,000 jobs in the solar industry at risk.
They say projects have already been abandoned and jobs lost because of the current uncertainty.
This has affected firms in Merseyside that have prospered thank to the introduction of feed-in tariffs (FITs), an initiative launched by the last Labour Government.
Mr Huhne wants to reduce FITs – payments made to households and communities that generate green electricity through solar panels – on any installations completed after December 12 last year.
When FITs were introduced in April 2010, the rate payable was a generous 43p per kilowatt-hour.
This proved so popular that the Government felt the need to reduce this to 21p per kilowatt-hour.
The solar industry accepted the need for the reduction but was taken by surprise by the December 12 cut-off.
It expected the change to be implemented in March this year, thereby giving it time to prepare.
Two installation firms successfully challenged the tariff change in the High Court, a decision upheld by the Court of Appeal last week.
Following that decision it was initially believed that the 43p rate would be reinstated for solar PV systems installed, commissioned and registered between December 12 and March 3.
However, Chris Huhne has now said that it intends to appeal the decision to the Supreme Court.
This has led to both the Government and the Solar Trade Association warning installers not to promote the higher tariff until the case has been settled.
Should the Government lose that final appeal then all installations between December 12 and March 3 will benefit from the 43p rate for 25 years.





