DECC today revealed a ‘contingency’ plan for the solar subsidy which is at the heart of a court dispute between the Government and solar campaigners.

Energy Minister Greg Barker said his department is today laying before Parliament a lower rate of 21p/kWh, which would kick in from April for solar panel installations made by 3rd March.

DECC is in the middle of a court case with two solar firms and campaign group Friends of the Earth after it announced plans to halve the Feed-in Tariff (FiT) in December last year – months earlier than expected and before a review of the FiT was complete.

The Energy Minister said he hoped today’s news would end the “current uncertainty created by the legal challenge.”

Mr Barker added: “Today we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3 March.

“We’re appealing against the court ruling that’s challenged our proposal for a December reference date. This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait.”

The new FiTs rate proposed in Parliament today are as follows:

Less than 4kW – 21p/kWh

More than 4-10kW – 16.8p/kWh

More than 10-50kW – 15.2p/kWh

More than 50-250kW – 12.9p/kWh

More than 250kW-5MW – stands at 8.5p/kWh