The Government’s decision to implement a cut in the electricity feed-in tariff from 12 December, ahead of the end of a consultation period, was ruled illegal by a High Court judge on 21 December.

The Government instantly said it intends to appeal, which should keep some civil servants busy over Christmas as the judge gave it until 4 January to lodge the appeal.

Environment charity Friends of the Earth instigated the Judicial Review supported by firms that make solar panels (photovoltaic, or PV, cells).

The Government announced the cut in PV feed-in tariff rates from 43p to 21p/kWh in October. It said that although the reduced rate would not start to be paid until April, it would be backdated to 12 December.

The move followed a cut in the tariff for the largest units in August by as much as 70% to discourage farmers from turning over land from food production to electricity generation as so-called ‘solar farms’ started blackening acres of the countryside.

The cut in the feed-in tariff has been blamed for the loss of hundreds of jobs in the industry supplying solar panels as the take-up of installations has fallen dramatically following the October announcement. Some major players – notably Carillion – immediately pulled out of the sector.

The feed-in tariff was introduced to encourage the owners of domestic and commercial premises to install electricity generation systems on their premises.

The reason has always been expressed in environmental terms, as the UK seeks to reduce its output of greenhouse gasses, but it is also increasing electricity generation at a time when it has been predicted demand for electricity in the UK could outstrip the traditional generating industry’s ability to supply as early as 2020. Paying lots of small producers to feed the National Grid looked cheaper and less politically sensitive than building new coal-fired or nuclear generators.

But with a return on investment of 10-15% a year, far more than can currently be achieved by most investments, and, being guaranteed by the Government, a lot more secure than most investments, businesses and householders have been keen to get into electricity generation.

So many people planned to make the move that the Government funds to finance the plan were rapidly running out. Hence the reduction in the feed-in tariff announced in October.

But on 21 December, Justice Mitting said the decision by the government to reduce the tariff as of 12 December, 11 days before the consultation period was due to close, was unlawful.