Solar firms take on UK government over subsidy cuts

Two of the UK‘s largest solar firms took on the government in court on Tuesday over early closure of the Renewables Obligation to large-scale solar projects.
Solar power plant
The government launched its plans to prematurely end RO for large-scale projects, with a consultation in May 2014

When the closure of the scheme was later confirmed, it was ruled that solar power companies that had not met certain criteria ” such as having planning permission ” by the time that consultation started would not qualify for the remaining subsidy, even though this was to run until April 2015.

SolarCentury and Lark Energy argue that the subsidies were cut in a “sudden retrospective nature”, introducing a level of political risk “for which no investor or company can adequately prepare”.

The companies argue that having this ‘grace period’ start when the consultation was launched ” rather than after the legislation is officially passed” counts as retrospective legislative change, which they claim is unfair.

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