This defeat was quickly followed by two influential select committee reports which were reported as saying:
The government's rush to cut a subsidy for people who generate solar electicity on their roofs was clumsily handled and may have fatally damaged a growing industry which had the potential to provide tens of thousands of jobs, says a new report by MPs on two influential select committees.
Joan Walley MP, the chair of the Environmental Audit Committee further said:
"It doesn't make economic sense to let the sun go down on the solar industry in the UK. As well as helping to cut carbon emissions, every panel that is installed brings in VAT for the government and every company that benefits from the support is keeping people in work. The government is right to encourage people to focus on saving energy before fitting solar panels, but these proposals will stop nine out of 10 installations from going ahead, which will have a devastating effect on hundreds of solar companies and small building firms installing these panels across the country."
The rationale behind the government's decision to reduce the feed in tariff was the fact that the cost of installing solar pv had fallen 30% and that the cost of the subsidies to household bills would be £26 for every household per annum in 3 years time or £950 million a year. The £950 million figure seems to be completely off the wall as the total cost of Feed in Tariff from the 1st April 2010 to 30th September 2011 is only £45 million or £1.80 per household. How DECC come up with a figure twenty fold more than the current cost of the Feed in Tariff is beyond me and it seems beyond Mr Mitting as well.
Congratulations to Friends of the Earth and the two solar companies who bought this action.