A group of solar firms has been given permission by the High Court to proceed with a judicial review against Energy Secretary Chris Huhne.
The group claims that millions of pounds invested in community-based solar projects have been put in jeopardy by cuts to subsidies announced by DECC yesterday.
The Feed in Tariffs scheme which began in April 2010 offered renewable projects money to produce their own energy, but it was so popular that DECC has decided to drop the subsidy level.
Mark Shorrock, CEO at Low Carbon Solar UK, one of the companies involved in the legal claim, said the group “strongly disagree” with DECC’s suggestion that cutting the FiTs will create a sustainable basis for smaller projects.
MO3 Power, The Green Company and Alectron Investments are among the companies that want to challenge the new tariff levels. They estimate that the new FiTs represent a 70% cut to subsidy.
Defending the decision, Energy Minister Greg Barker said he recognised it would be “unwelcome to some” but declared: “It is vital that we protect the integrity of the scheme and can continue to support the ambitious roll-out of new, green, decentralised energy technologies in homes, communities and small business.”
DECC has said that the change will only affect new entrants into the FITs scheme.