UK court rejects government’s bid to cut solar subsidy for homes

25 March 2012 (Last Updated March 25th, 2012 18:30)

The UK's Supreme Court has rejected the government's appeal to cut subsidies for solar panels on homes.

The UK's Supreme Court has rejected the government's appeal to cut subsidies for solar panels on homes.

The Department of Energy and Climate Change, which claims subsidies cost too much, lost its third appeal on Friday after the court ruled that plans to halve solar payments were "legally flawed".

Homeowners and businesses who installed solar panels after a 12 December cut-off date and before 3 March will now be eligible for the previous, higher feed-in tariff (Fit) of 43p per kWh of energy generated, which was cut to 21p with just six weeks' notice, reports the Guardian.

UK Energy and Climate Change Secretary Edward Davey said he disappointed by the decision of the Supreme Court not to grant permission to hear the case.

"But the Court's decision draws a line under the case. We will now focus all our efforts on ensuring the future stability and cost effectiveness of solar and other microgeneration technologies for the many, not the few," Davey added.

An earlier High Court ruling was upheld by court of appeal judges in January saying that the energy secretary lacks the power to introduce the controversial "retrospective" scheme.

A tariff cut of 55% will be applicable from April on projects completed after 3 March 2012.