According to sources, the legal action against the government from solar firms claiming lost earnings caused by illegal changes to the solar electricity feed-in tariff could exceed £100m mark.
Solar firms claim they lost millions of pounds worth of business after the government announced in October 2011 that it would cut the feed-in tariff (FIT) for solar power by half, which is paid to people who install solar panels on their property for the power generated. The announcement provoked a downturn in the industry, with installations falling 97%.
The move was subsequently ruled illegal by the High Court because the 12 December cut-off date stipulated by the government was before the government’s consultation on the change had ended. Last week, three solar companies announced that they would escalate their claim for £2.2m in damages to the High Court after the Department of Energy and Climate Change (DECC) declined their original request for the money.
Prospect Law, the firm handling the claim, stated that it expected more firms to join the case before the end of October. Building understands several firms are eager to join the action, and sources close to the claim said it could grow to over £100m as more come on board. The boss of one solar company told Building that last year he had an offer from investors to buy his entire business for £120m but that this offer was then dropped in the light of the government’s announcement.
