A ‘fatal’ motion to repeal the changes was defeated on Tuesday evening by a margin of more than two to one.
The motion was tabled last month by Lib Dem peer and former coalition minister, Lynne Featherstone, following widespread criticism of the new rates, particularly those for solar PV.
The tariff for small solar installations of less than 10kW is due to be cut by 63%, from around 12p/kWh to 4.39p/kWh. The rate for larger installations of between 10 and 50kW is also set to fall from 11.3p/kWh to 4.59p/kWh.
Decc’s own impact assessment predicts the new tariffs will lead to job losses in the solar sector of between 9,700 and 18,700.
Opening yesterday’s debate Featherstone said the reduced rates would “have far-reaching and detrimental effects; effects which will not only put our renewables industries in serious jeopardy but impact on our ability to deliver our legally binding renewable energy targets.”
The Tory peer and under-secretary of state for energy and climate change, Lord Bourne, was among those putting forward the case for the government: “Without the changes that we are seeking to introduce today, we estimate that by 2020 would cost £1,740 million per year; with the changes, it will still cost £1,300 million per year.”
In the end the motion was defeated comfortably, with 91 peers voting to repeal the changes and 230 voting to keep them.
On Tuesday two of the UK’s largest solar companies renewed a court battle with the government over the over the early closure of the renewables obligation to large-scale solar projects in early 2014.