The Government has defended challenging a High Court ruling that its cuts to solar subsidies were illegal – but admits "lessons will be learnt" over the affair.

Energy Secretary Chris Huhne and minister Greg Barker faced criticism from MPs during yesterday's Energy and Climate Change Questions in the House of Commons. It followed Wednesday's decision in the Appeal Court that the Government could not overturn the ruling that its plans to cut the Feed-in Tariff (FiT) were illegal.

The Department of Energy and Climate Change (DECC) is undecided over whether to take their legal bid to the Supreme Court, a move which will further add to the burgeoning legal bill passed on to the taxpayer.

Confusion surrounding the changing dates and rates of the tariff has flummoxed those in the renewables industry – particularly in the South West where enthusiasm for solar projects resulted in short-lived talk of a jobs boost.

Yesterday, Exeter MP Ben Bradshaw (Labour) said the Government's incompetence had been "staggering", and called on Mr Huhne and Mr Barker to abandon the legal case.

In response, Mr Huhne, who described the Westcountry MP as "uncharacteristically churlish", said: "This is the best way forward for the sustainable growth of the industry."

Asked whether businesses – which had missed out on orders as the tariff rates plummeted – would be compensated, Mr Huhne said: "The reality is that businesses take risks – sometimes they have high rewards, sometimes they don't."

Mr Huhne said the Government "would learn from the mistakes of the (FiT) system".