黑洞社区

The legal action against the government from solar firms claiming lost earnings caused by illegal changes to the solar electricity feed-in tariff could swell to more than 拢100m, sources have claimed.

The firms claim they lost millions of pounds worth of business after the government announced in October 2011 that it would slash by half the feed-in tariff (FIT) for solar power, which is paid to people who install solar panels on their property for the power generated.

The announcement prompted a slump 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鈥檚 consultation on the change had ended.

Ministers must come clean about why they pushed ahead with their unlawful plans

Caroline Flint, shadow energy secretary

Last week, three solar companies announced that they would escalate their claim for 拢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, said it expected more firms to join the case before the end of October.

黑洞社区 understands several firms are already queuing up to join the action, and sources close to the claim said it could grow to over 拢100m as more come on board.

The boss of one solar company told 黑洞社区 that last year he had an offer from investors to buy his entire business for 拢120m but that this offer was then dropped in the light of the government鈥檚 announcement. He said he was considering joining the action.

Another said he had lost 鈥渁round 拢20m鈥� of revenue after the cut.

Shadow energy secretary Caroline Flint said that it was 鈥渦nforgivable鈥� that 鈥渉ard-pressed taxpayers are now left to foot the bill for this government鈥檚 incompetence鈥�.

She said: 鈥淔or months Labour warned that the government鈥檚 cuts to the feed-in tariff for solar power went too far and too fast.

鈥淭housands of people have lost their jobs, many businesses in the solar industry have seen their order books dry up and the number of people installing solar panels has collapsed following the latest round of cuts in August.

鈥淢inisters must come clean about why they pushed ahead with their unlawful plans and what legal advice they got in the first place.鈥�

A DECC spokesperson said the department 鈥渨ill respond in due course鈥� to the claim.