The UK has lost a third of solar jobs in the past year and a further 30 % of solar businesses expects to cut staff in the next 12 months, according to a detailed new analysis (link is external) published today by the Solar Trade Association (link is external) and PwC.
The 238 solar industry firms surveyed said they collectively employed 3,665 people now - compared to 5,362 a year ago. This is a fall of 32 %. 4 in 10 firms are being forced to either exit the solar market entirely or diversify into other markets to keep their heads above water.
Extrapolating these data across the UK solar industry, the figure for job losses over the past year could exceed 12,500 - around one third of previous total employment in the solar industry, the Solar Trade Association found. Due to a change in support policy of the UK government, solar deployment this year is expected to fall from an average of 1 GW of past 5 years, to less than 300 MW this year, a 75 % drop.
The solar industry has had a tumultuous year. Deployment in domestic solar has dropped 80% for domestic solar under the Feed-in Tariff compared to this time last year. 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. The Renewables Obligation was in effect closed to solar in July 2015. No future auction rounds under Contracts-for-Difference for Solar are anticipated.
The Solar Trade Association has long been concerned by the lack of an industrial strategy for the UK solar industry. The UK Government is today allocating only 1 % of new renewable energy project expenditure to solar power under the Feed-in Tariff. Leonie Greene, Head of External Affairs at the Solar Trade Association 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 6-8 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. International experience of tax breaks is solid, and the industry is clearly behind this.”
Nearly half of the respondents see new build as a key sub market this year. Moves by the Scottish Government to improve new build standards are creating opportunities and it appears that the new London Mayor will also move to support solar deployment across the capital. One in eight respondents are also looking to take their skills overseas to secure business opportunities, with Africa and North America the key markets they are looking to expand into.
Solar Trade Association / Volker Buddensiek