Solarcentury, TGC Renewables, Lark Energy and Orta Solar are challenging the decision to close the RO scheme to new assets greater than 5MW from 31 March 2015, two years ahead of the original 2017 deadline.
Large-scale solar schemes would still be able to apply for the new Contracts for Difference (CfD) scheme, which starts in April next year.
The UK’s solar trade association, although not involved in the case, said it is “not surprised” by the legal action against what it calls a “damaging interference”.
“Solar in Britain is so close to becoming subsidy free, cheaper than wind and potentially cheaper than gas. This would mean cheaper bills for consumers and real competition to the Big 6, but it can only happen if the Government gives solar stable, reliable support,” said STA’s head of external affairs Leonie Green.
Investment analysts at RBC Capital said the RO closure could trigger a flurry of projects coming forward before the scheme closes.
“We would expect solar developers to push as many assets forward in the balance of the current as they seek to earn ROC accreditation,” said an investor note Tuesday morning.
“Indeed, recent industry data suggests 1.5 GW of new capacity has been installed in the UK in 1H 2014, meaning that total installed capacity is now 4.8 GW. We would expect this rate of deployment to at least be matched in H2,” the analysts added.