Solar VCTs handed ‘lifeline' as Court of Appeal blocks subsidy cut

Solar venture capital trusts (VCTs) have been handed a ‘lifeline' as the government lost its appeal against a High Court ruling on solar subsidies.

Energy secretary Chris Huhne had campaigned to impose a lower rate of subsidy for solar panel installations from 12 December, two weeks before the end of the consultation period. Last September the government announced it was planning to axe the ‘extension rule' that gave VCT providers an extra 12 months to benefit from big tax breaks, in a major U-turn to April's budget proposals. In April the government announced new larger-scale renewable energy sites that are between 0.5 and five megawatts, will have their feed-in-tariff payments cut by 70%. However, the government is now propo...