21 December 2011 The Guardian

The government's decision to slash feed-in tariff incentives for solar installations breached rules governing consultation exercises.

Government plans to slash incentive payments for householders who install solar panels were on Wednesday ruled "legally flawed" by a high court judge. The ruling opens the door for a judicial review that could force the government to delay its plans, potentially allowing thousands more people to claim the higher subsidy.

The judgment comes after a challenge by Friends of the Earth and two solar companies who argued that the government's decision to cut the feed-in tariff from 43.3p to 21p with only a few weeks' notice was premature and unlawful, and had led to unfinished or planned projects being abandoned.

The judgment, made by Mr Justice Mitting after a two-day court hearing, comes hours before two powerful committees of MPs are due to release their report on the government's handling of the solar subsidy. The environment audit committee and energy committee are expected to add to government's humiliation by saying it was "clumsy" and had threatened the survival of a nascent industry promising thousands of jobs.

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