Government Propose New FIT Cut Date

The government has moved to address the uncertainty surrounding the feed-in tariff by proposing a cut from 3 March if the government loses its legal battle. In a ministerial statement to parliament, Energy Secretary Chris Huhne said that the government stood by the proposals in its consultation that saw the FIT slashed from 43p/kWh to 21p/kWh from 12 December. However, Mr Huhne said that to provide certainty, in the event the government loses its legal appeal against a High Court ruling that the cut was unlawful, he would introduce a cut from 3 March to 21p/kWh. Admitting the government was unsure when the Court of Appeal decision would be made, Mr Huhne said: ‘I know that the uncertainty while we await the court’s decision is difficult for the industry.’ Read more on Inside Housing.

Huhne Hints at Rethink for Social Housing FIT Cuts

The energy secretary has suggested the government will consider putting in place special feed-in tariff rates for social housing providers, but that is not currently able to do so. Speaking in parliament, Chris Huhne said the government is considering what can be done ‘to enable genuine community projects to benefit fully from FITs’, but that this will be subject to a further consultation on the payments. Asked to clarify whether social housing counts as a ‘community’ project, Mr Huhne said: ‘On social housing, I have already said that we will consult on whether it is appropriate to have a separate tariff for genuine community projects.’ He claimed the design of the scheme, which was introduced by the Labour government, means it is currently not legally possible to introduce a special rate for not-for-profit organisations. Read more on Inside Housing.

Councils Urge Huhne to Rethink Solar Tariff Cut

The Local Government Association (LGA) has written to energy secretary Chris Huhne urging him to delay plans to halve to the rate of feed-in tariffs (FITs). The organisation warned that by reducing the subsidy earlier than planned, the government will force councils to pull the plug on thousands of solar panel installations, potentially costing them hundreds of millions of pounds. It is calling on the government to extend the deadline for the existing rate of subsidy until March 2012, the end of the financial year. At least four local authorities have already put solar power projects on hold, saying the funding cut renders them financially unviable. Read more on the LGA website.