Collapse of UK solar businesses sparks criticism of Government

Solar energy company Mark Group went into administration last Wednesday, resulting in almost 1,000 redundancies, with a further 200 jobs at risk if a buyer cannot be found.

The Leicester-based company were followed hours later by solar installation specialist Climate Energy, who announced the news on their website.

Mark Group, sold by worldwide clean technology firm SunEdison just months after purchasing it, blamed the government’s recent solar subsidy cuts for their closure.

Bill Rumble, Mark Group's chief commercial officer, speaking to the Leicester Mercury, said: “Recent changes to Government policy on energy efficiency put a lot of pressure on the business."

A statement from the company, founded in 1974, said: “This decision has not been taken lightly but the ongoing losses of the business meant it was our only option.

“The turnaround plan, which was already under way, focused on solar PV but the government’s recent policy announcements mean this is no longer viable.”

The government plans to cut subsidies for electricity generated from rooftop solar panels by almost 90 per cent from January in a new policy announced by Energy Secretary Amber Rudd in August.

SunEdison criticised the Department of Energy and Climate Change (DECC) for its u-turn on the ‘rooftop solar revolution’.

The US-based firm said: “We are extremely disappointed that the draconian policy proposals made by the government in August will essentially eliminate the solar PV market in the UK.”

Ed Matthews, a director at campaign group Energy Bill Revolution, believes the government must move fast to provide long-term investment support for energy efficiency.

He said: “The Mark Group should be thriving but its business model has been wrecked by years of damaging energy policy interventions.

“The government should be making infrastructure funds available for a far more ambitious and effective household energy efficiency programme.

“If they don’t, we are in danger of the entire industry collapsing.”