The UK government may have to pay compensation to three solar companies for losses they claim are caused by 2011 cuts to the incentive scheme for solar.
The claim has come following a legal challenge to the cuts, which the government lost.
A 90 per cent drop in solar installations resulted from the coalition’s decision to cut solar payments in the feed-in-tariff scheme by half last October.
The Guardian reports that the companies, who have sent a "letter before claim" to the Department of Energy and Climate Change (Decc), say the government should pay because they claim its action "caused major financial losses and materially harmed the confidence of both consumers and the industry".
Solarlec PV Solutions and two others who did not want to be named, have given Decc two weeks to respond, but their legal team hopes the matter will be settled out of court.
Nick Keighley, founding director of Solarlec said, "We're respectfully asking that the department acknowledges its unlawful behaviour and rectifies the damage caused to the industry. We can then put this behind us and get moving to create the solar future the public wants."
Decc says the letter has been received and they are considering a response.
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