Mr Shapps recapped on measures already unveiled and promised more incentives to help development.

He covered old ground by repeating his claim that the Communities and Local Government Department has identified enough Government land for 80,000 homes, and he flagged up the Get Britain Building Fund, which will offer Government loans and equity stakes to kick-start  stalled building projects.

Mr Shapps also talked about the Mortgage Indemnity Scheme (the Newbuy Guarantee Scheme) which will help UK citizens to buy newly built properties (up to the value of £500,000.00) allowing access to 95% mortgages so long as the property is to remain a home. This will help buyers who are either trying to get on the ladder either first time or move up it.

Mr Shapps said “The pattern of the past has been to produce endless policies and initiatives that simply gather dust on Whitehall shelves and lead to inaction and inertia.  But with the Prime Minister putting housing centre stage on the road to economic recovery, I am determined that we shall not repeat these mistakes of the past.”

Yesterday’s Court of Appeal ruling thwarted the Government’s plans last autumn to bring an early end to the 43.3p Feed in Tariff (FiT) – or did it?   With the likelihood of the government appealing to the Supreme Court, more uncertainty and time lies ahead for social housing providers – and, ultimately, the UK’s most vulnerable and disadvantaged people in fuel poverty may lose out on reduced energy costs.

“If the government appeals to the Supreme Court” comments Lucy Worrall, partner and social housing specialist at Croftons Solicitors LLP, “by the time any final decision is reached the likelihood of any photovoltaic solar panel schemes going ahead while the 43.3p Feed in Tariff still exists is pretty slim.”

Continuing, Lucy said “the Court of Appeal today ruled against the government without even hearing the appeal.  The government has said it is likely to appeal directly to the Supreme Court.    If the government is defeated again (and therefore the FiT goes back to 43.3p for installation schemes from 12 December 2011 to 3 March 2012), it is likely to be so close to 3 March 2012 that there won’t be any chance of planning and installing any　schemes of any significance by RPs.”

“As far as registered providers are concerned, it’s a gamble,” adds Lucy.  “As far as we can ascertain at this point, the only certainty is that the lower rate of 21p/16.8p is to come into effect on 3 March 2012.   Other than that, there is the risk that the government’s appeal to the Supreme Court will be upheld – in which case the FiT reduction which was due to take effect on 12 December 2011 will be in place.  On the other hand, if the government is defeated in the Supreme Court, then what little time remains from then until 3 March is probably not realistic for any scheme to go ahead unless it is already well advanced.”

For registered providers willing to take a risk and the 43.3p remaining for installs completed before 3 March, Lucy says “There may still be enough time for those prepared to take the gamble and install panels. For registered providers looking at a rent a roof scheme, any such scheme would realistically have to be on uncharged stock unless both the lenders and their lawyers can act very quickly to give consent. Either way, speed is of the essence!”

Looking beyond 3 March 2012, though, Lucy feels that registered providers have a number of other options for renewable and green energy initiatives.     “There are still a number of viable options for pv including rent a roof schemes (which many have now written off) even after the FiT is reduced.” says Lucy. “We know of providers who have devised a way to make rent a roof schemes work at no cost to RP’s but at great benefit to their tenants”.

A consultation into the proposed Green Deal, due to launch in October, has shown that whilst the idea behind the proposal would be welcomed, there are serious concerns over the practicalities.

The idea behind the Green Deal is simple – households will get energy efficiency improvements to their homes at no upfront cost, the cost of the improvements is then paid back over 25 years via a small increase on the (now much lower) energy bills. The ‘Golden Rule’ is that the savings must outweigh the repayments.

However, some like the British Property Federation suggested that the government should provide additional cash incentives to help make the scheme more attractive. Liz Peace, chief executive of the BPF described tackling energy performance as ‘a crucial, but so far neglected element of any credible strategy to reduce energy demand.’

Lucy Worrall, partner in Croftons’ Social Housing and Green Energy departments believes that  the cost of financing the Green Deal is currently prohibitive and borrowing rates will need to come down in order for the ‘Golden Rule’ to be met. Lucy also comments “From working with registered provider clients on their green energy initiatives, many are looking at the Green Deal to finance solar pv panel installations but due to the EPC ratings that are required social landlords may be better using the Green Deal to finance works such as  insulation and deal with pv installations seperately. I am aware of rent a roof pv models that still work for RPs at the lower FiT rates financially speaking, so RPs should still see them as a feasible option despite the lower FiT rates.”

The Federation of Master Builders also believes that greater incentives should be offered to ensure more households take part. This, they suggested, could be achieved by reducing VAT on green deal improvements or reducing stamp duty.

Others, like the Royal Institute of British Architects suggested the number of obstacles that must first be overcome before the Green Deal could work were too many.

October 2012 is now looking unworkable for the Green Deal in its current form and we expect that date to be pushed back until some of these issues can be ironed out.

The DECC released a statement explaining that once the outcome is known they will “consider their options and make an announcement on the way forward to provide clarity to consumers and industry.”

Meanwhile, David Hunt, a Director with Eco Environments, was critical of the DECC saying: “The Government has not covered itself in glory during this whole sorry saga, and this outcome further exacerbates the negative impact of their actions.”

Many however, including Friends of the Earth Policy and Campaigns Director Craig Bennett, believe that the DECC need to have a back-up plan to save the Solar industry should their appeal fail.

Bennett said, “By pushing through with this appeal Ministers have prolonged the uncertainty hanging over the solar industry – now they must urgently come up with a Plan B to safeguard the 30,000 jobs under threat.” He also suggested David Cameron put a proposal before Parliament to cut subsidy rates by the end of February. This, Bennett claims, would not only give the industry some much needed certainty but also avoid another ‘gold-rush’ as with the announcement of cuts last November.

It has also been suggested that the government increase the amount of money available to the feed-in-tariff scheme by using the multi-million pound tax revenues generated by solar firms.

The DECC responded to these calls for clarity late last week (19 January) by publishing a ministerial statement explaining its intentions should their appeal fail. The DECC is laying before Parliament some ‘draft licence modifications’ which make provisions for a new rate to apply for panels installed between 12 December 2011 and the 3 March 2012.

The move was welcomed by Friends of the Earth, with Andy Atkins, Executive Director, saying: ‘At last the government is taking steps to sort out some of the uncertainty that’s crippling a thriving UK industry – planned cuts will at last allow solar firms to start planning for the future.”

The Court of Appeal judges say it would be optimistic to expect a judgment this week but will do everything they could to get the judgment released on, if not before, February 9 – which is the same day the Government intend to publish the results of their consultation.

The whole essence of the awards is to celebrate the accomplishments and achievements of the legal profession and recognise and reward the wide range of skills and talents in the region.

As well as showing sector specific skills within the area of practice, nominees are required to display teamwork, innovation and service, particularly in the context of the current financial/business environment, client sensitivity, a commitment to quality and value and an awareness of the needs of and sensitivities of the sector.

We at Croftons are proud to be one of Manchester’s longest-standing social housing teams, known and valued by clients for a highly personal service, excellent value, outstanding sector knowledge and sensible costs.

We are pleased to have been short-listed in this category as it is great recognition of the strength and quality of work within our Property Team.

The results dinner will take place in March 2012. Other finalists for this category are Eversheds LLP, Pannone and Addleshaw Goddard. Full details of all categories and finalists for Manchester Legal Awards 2012 are now available.

The drop in feed-in tariff has been well documented and commented on by those in the sector, including by our own Lucy Worrall.

See our published comments in Housing magazine (Dec-Jan 2012 Issue) – Has the Sun Set on a Solar Future.

]]> http://croftons-solicitors.co.uk/2012/01/16/croftons-in-the-news/feed/ 0 http://croftons-solicitors.co.uk/2012/01/16/update-pv-judicial-review/ http://croftons-solicitors.co.uk/2012/01/16/update-pv-judicial-review/#comments Mon, 16 Jan 2012 10:57:22 +0000 Lucy http://central.croftonsinjuryclaims.co.uk/?p=3713 On 21 of December 2011, a High Court judge ruled that the Government’s proposed cut in Solar PV Panel Feed-in-Tariffs (FiTs) was illegal. On 4 January, the Department of Energy and Climate Change launched an appeal against the High Court’s ruling and it is thought that this morning (13 January) the Court of Appeal will grant the DECC consent to appeal.

The High Court found that the cut was “inconsistent with the FiT scheme’s statutory purpose” (according to a spokesperson from the DECC).

The High Court believed that the cut in FiTs went against their ‘statutory purpose,’ which was to encourage a small-scale low-carbon electricity generation. The appeal lodged by the Government, however, puts forward several arguments, including that the judge took his own view of what constituted ‘encouraging small-scale, low carbon electricity.’

The Government’s appeal suggests that the Court should not have accepted the application for judicial review because the issue was still in consultation – although  one of the main grounds for judicial review was that the consultation ended after the deadline day for the cut in FiTs. The full grounds for appeal can be read here.

The first stage of the consultation on feed-in tariffs closed on 23 December 2011, with results expected by the end of January. However, since Friends of the Earth and certain members of the UK solar industry won their case against Government’s actions, the publication date has been set back. Approximately 3,000 responses are thought to have been received to the consultation.

If the DECC are granted consent to appeal by the Court of Appeal, their case will be heard this afternoon – although a final judgement should not be expected immediately.

Lucy Worrall, Partner in Croftons’ social housing and green energy departments comments “Whatever the outcome, the practical situation facing registered providers is that the sudden government announcement on 31 October to reduce FiTs made all but the well progressed schemes dead in the water. I am however seeing from innovative and entrepreneurial panel suppliers and funders, a new wave of propsals based on the lower rates which may well stack up financially for RPs.”

Lucy Worrall, Partner

Twitter @lucyVworrall

Email lworrall@croftons.co.uk

LEAF, which will be administered by the Energy Saving Trust, is designed to support community action on energy efficiency and renewable energy and there are a wide range of projects that can qualify. These include; building energy surveys, demonstration projects, resident energy-saving workshops and public engagement events, amongst many others.

Applications for the first round of grants were submitted by 22 December 2011 and the second deadline is 20 January 2012. The application is to be made online at the Local Energy Assessment Fund’s website– which also contains a guide to applications.

The fund is open, as could be expected, to applications from registered providers, local authorities and development trusts but also to community groups such as Parish Councils.

Chris Huhne stated that “This is great news for the public sector. Not only do we need to encourage energy efficiency in our schools, hospitals and universities, we also need to get green energy generation and energy efficiency into our communities. That’s why we are also making £10million available for communities to help spur an energy revolution at a local level.”

It is thought that the fund will be run as a competition with over 200 community organisations applying for a cut of the £10m pot. Whilst the maximum amount for any one grant is £130,000 the average grant is expected to be closer to £50,000.

If successful, applicants will be notified by the end of January 2012 and must complete their projects by March 31 2012.

Lucy Worrall, Partner

Twitter @lucyVworrall

Email lworrall@croftons.co.uk

SANDS – 34.92%
Barnabus, Manchester – 19.05%
Children’s Liver Disease Foundation – 46.03%

Our donations will follow early in the New Year.

But for now – from all of us here at Croftons – may we wish you all a Merry Christmas and a Happy New Year!

Please note that our offices will be closed from 5:00pm today (Friday 23 December 2011) and will re-open at 9:00am on Tuesday 03 January 2012