10 November 2011 The Guardian

A coalition of UK solar companies has initiated legal action against the government in response to its plans to more than halve solar subsidies.

The action focuses on the recent announcement by the Department of Energy and Climate Change (Decc) to cut the rate paid to householders with solar panels under the feed-in tariff from 43p per kWh to 21p, significantly reducing the attractiveness of the technology to customers and investors.

Decc has said that the new rates will apply from 12 December, just six weeks after the announcement was made and before the consultation on the proposed changes closes on 23 December.

The lawyers acting for the solar companies will argue that the 12 December deadline is unlawful on the grounds that it prejudges the consultation process and is being implemented without adherence to the correct procedures. The lawyers will also argue that the deadline is "unreasonable" because of its impact on the industry and on groups which have spent time and money developing projects that will have to be cancelled if they can't be completed by 12 December. 

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