By Ed Gill, Head of External Affairs, Good Energy 

The Feed-in Tariff (FIT) has been in the news again this week and sadly for all the wrong reasons. First we had the early review of FIT support for large-scale solar projects. Then we had the 12th December deadline for domestic-scale solar projects. We also now have a proposed energy efficiency standard that has, we suspect, very little to do with energy efficiency. Finally, we have a court case that has ruled that the Government’s plans to hold back uptake of the scheme are unlawful.

So where are we now? Yesterday’s ruling hinged on the Government’s proposal that sub-4kw (i.e. domestic) solar FIT project registered after the 12th December would not be eligible for the current 43p/kwh rate after the 1st April. They suggested from that date generators would be able to claim the proposed new tariff level of 21p/kwh. The problem was, however, that the consultation on that deadline closed after the deadline itself – on the 23rd December. It’s fair to say that this particular model of consultation is unlikely to be used by civil servants as a shining example of best practice in future.

It’s worth remembering the context here; some 18 months ago, the Treasury decided that a cap needed to be placed on the amount of money handed out through the FIT scheme without any warning or apparent explanation. There is no taxpayer money in the FIT, with it instead being funded by energy suppliers via a small charge to customers’ bills. But the problem is that the cap was based on outdated modelling which underestimated the interest in the scheme. The Government argued that unless demand is curtailed then that budget will be used up very quickly; hence the early deadline and, arguably, a proposed energy efficiency standard that less than 10% of homes in the UK can currently meet.

So what happens next? Well, the Government’s plans to restrict demand for the scheme now lie in tatters. The judge even ruled yesterday that DECC can’t appeal immediately and that it has to prove why it should be allowed to do so. If DECC fails in that but still confirms that the 12th December deadline stands, as originally planned for the New Year, then it will almost certainly be taken to court again and would very likely lose given this week’s judgement.

There a number of possibilities. To quote one well-known U.S. politician, as the situation stands “there are known knowns... there are known unknowns….but there are also unknown unknowns”. What we do know is that the ball currently lies in the Government’s court. It has already said that it will ask to be allowed to appeal yesterday’s ruling, as it has nothing to lose by doing so. But what happens after that is up in the air.

What is absolutely paramount is that the Government moves on as soon as possible from its current short-term ‘fire-fighting’ approach on the FIT to one which sets out the long-term future for the scheme. That has to include a new structure that takes into account the popularity of a scheme that allows people, households and businesses to have greater control of their energy bills. It has to avoid the need to introduce emergency consultations and measures like the proposed energy efficiency standard, which have nothing to do with energy efficiency and everything to do with stopping new entrants to the scheme. In short, we need a scheme that does not risk becoming a victim of its own success.

As our CEO and founder, Juliet Davenport, said yesterday “The FIT is the best tool we have for delivering the kind of decentralised energy system we need in this country to tackle the energy challenges we face. It gives people control over their energy bills and helps them reduce their carbon emissions. Let’s see the Government commit to the scheme’s future by focussing on the issues that really matter.”

Good Energy is running a Facebook poll on what this week’s High Court ruling could mean for the future of the Feed-in Tariff.