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Solar Energy companies 'must wait to see if they can claim compensation from DECC'

2 Feb 2012

Solar Energy companies 'must wait to see if they can claim compensation from DECC' - law firm

Last week's Appeal Court decision against DECC in the long-running dispute over solar subsidies has led to a surge in enquiries from companies asking whether they can pursue claims against DECC, according to law firm Osborne Clarke.

Renewable Energy lawyer Clare King said:

"Many companies in the solar sector are treading water while they wait for this saga to end. In the meantime, an increasing number are getting close to breaking point and some have already shut down.

"We've been approached by a number of companies wanting to know whether they can seek compensation for losses they’ve incurred as a result of DECC’s retrospective application of subsidy cuts.

"The answer is that much will depend on the particular circumstances of each claim. Assuming that the Supreme Court finds that DECC got it wrong, companies may have a claim for damages if they can show that they incurred losses as a direct result of DECC’s actions.

"The problem is that we won't know for certain until the Supreme Court has considered DECC's final appeal.

“In the meantime, we are working with a growing number of companies who are looking to share information and costs so they can take swift action once we have a final judicial decision.

“If they have any concerns about losses, solar companies are welcome to talk to us about their options ahead of the Supreme Court ruling.”

Osborne Clarke has set up a web page for companies concerned about solar subsidies at: www.osborneclarke.com/solarsubsidies2012