Survey shows 40% of UK solar firms mulling solar exit

Four in 10 UK firms are considering exiting the solar market because of the changes in support, a survey by PWC and the Solar Trade Association (STA) shows.

Meanwhile, one in eight respondents are looking for opportunities overseas, especially in Africa and North America.

The number of solar jobs in the UK has contracted by a third in the past year. The 238 solar businesses surveyed employ 3,665 people now, as compared to 5,362 a year back. Extrapolating these findings across the UK solar industry, the number of lost jobs could top 12,500, says the STA.

In addition, about 30% of the solar firms surveyed expect to lay off staff in the next 12 months.

“The UK has entered a highly uncertain period following the vote for Brexit, but uncertainty was a defining characteristic of the outlook for the solar industry even before the EU referendum,” says the report.

UK solar deployment this year is expected to drop to below 300 MW, from an average of 1 GW over the past five years.

The survey showed that nearly 50% of the respondents see new build as a key sub market this year. New opportunities arise from the Scottish Government’s moves to improve new build standards and the new London Mayor is also expected to back solar deployment across the capital.

Supporting solar investment through the tax system is the policy change the sector would most like to see.

“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. International experience of tax breaks is solid, and the industry is clearly behind this,” said STA’s head of external affairs Leonie Greene.

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