Solar firms seek over £2m FiT damages from DECC

Solar firms seek over £2m FiT damages from DECC

20 July 2012  Green Wise

Three solar firms are seeking over £2 million in damages from the Government because of losses they claim they have incurred as a result of unlawful cuts Ministers tried to impose to the Feed-in Tariff (FiT) last year.The companies, one of which is Burnley-based Solarlec PV Solutions and two of which are not being named, are requesting DECC compensate them for financial losses they say they have suffered as a result of attempts to rush through cuts to the FiT last December.

In a landmark case, the cuts were ruled 'unlawful and unfair’ by the High Court in December. The decision was subsequently upheld by the Court of Appeal and Supreme Court earlier this year.


Letter before claim
Lawyers acting on behalf of the three solar firms issued a 'letter before claim’ to DECC on Wednesday requesting it pay more than £2 million in damages or face legal action.
The solar firms are seeking damages on the grounds that they have seen among other things a reduction in orders, a drop in sales and profit margin and the loss of substantial contracts, including 'free solar schemes "virtually over night".

Last October, DECC Ministers announced they were going to slash the FiT for solar electricity by half ahead of a consultation on changes to the subsidy for small-scale renewable energy had run its course. The decision resulted in a massive drop in installations.
 
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