Job losses hit UK solar

Almost one-third of jobs in the UK solar power sector have been lost in the past year and a further 30% of businesses expect to cut staff in the next 12 months, according to a survey by the Solar Trade Association and PwC.

STA and PwC surveyed 238 companies in the solar industry that said they employ a total of 3665 people compared with 5362 a year ago, a fall of 32%.

The drop follows a year in which deployment in domestic solar has fallen 80% under the feed-in tariff (FiT) and business rates are also set to rise, STA said.

“Commercial solar roofs deployment under FiTs is capped at just 15MW per quarter and there is uncertainty about the extent to which corporate social responsibility concerns will sustain investment in the short term,” it said.

The Renewables Obligation was in effect closed to solar in July 2015 and no future auction rounds under contracts-for-difference for solar are anticipated, STA added.

The survey also revealed that four in 10 firms are being forced to either exit the solar market entirely or diversify into other sectors to survive.

STA said that extrapolating the survey findings across the UK solar industry as a whole, the figure for job losses over the past year could exceed 12,500.

Solar deployment this year is expected to fall from an average of 1GW over the last five years, to less than 300MW, a 75% drop, the association said.

STA said it has long been concerned by the lack of an industrial strategy for the UK solar industry, despite solar increasingly dominating global energy investments.

“The new Department of Business, Energy and Industrial Strategy therefore represents a very welcome opportunity to take a strategic approach to a winning and relatively cheap technology,” it added.

Almost 50% of respondents said they see new build as a key sub market this year, with moves by the Scottish government to improve new build standards creating opportunities.

Support for solar from the new London Mayor is also seen as positive for the industry.

STA head of external affairs Leonie Greene said: “The survey shows very regrettable damage to the fabric of the British solar industry and the need for prompt government action.

“Shockingly, since we undertook the survey, business investors in solar are set to be hit with a six-eight fold rise in business rates.

“We urge new ministers, rather than increase the tax burden of going solar, please reward investment with sensible solar tax breaks consistent with action on climate change.”

PwC head of renewables, assurance John Dashwood said: “These survey results show there will be a structural shift in the market and solar players need to consider alternative products, services and markets.

“The solar industry undoubtedly faces some serious challenges, but it has already proved resilient and adaptable.”

Image: Morgue File