A leading UK solar panel manufacturer is reviewing its operations because of plans by the UK Government to slash the Feed-in Tariff (FiT) for solar installations within a matter of weeks.
Sharp Solar confirmed today that it had written to the
Prime Minister David Cameron to raise its concerns about the proposed changes to the
solar FiT, which if implemented could lead to jobs losses at its manufacturing plant in Wrexham, Wales. However, the company said it had no plans to close the plant entirely.
"We are genuinely concerned by the Government’s comprehensive review of the Feed-in Tariff," Andrew Lee, head of international sales, Sharp Solar, said. "This review time frame is unrealistic, and like any good business we have to review our position and our offering in line with market changes. We have written to the Prime Minister to communicate these points."
Sharp Solar employs 500 people at its Wrexham plant, and admitted there already have been "workdforce fluctuations" at the factory in response to "variable demand" within the European market. Before the launch of the FiT in the UK, the company exported 98 per cent of its panels to other countries in Europe. However, it estimated by 2011, its installed capacity in the UK would have increased from 28 megawatts (MW) to 250 MW on the back of the FiT. Over time, Sharp has invested £26 million at the Wrexham plant.
"Decisions made by the UK and other European governments do affect our industry and we will continue to monitor the current Feed-in-Tariff proposals and the potential impact it will have on the UK PV industry," Lee said.
Job losses
Sharp Solar’s action comes amidst warnings the Government’s proposals to slash FiTs for solar by more than 50 per cent by December 12 will lead to major job losses and business closures in the solar industry. According to a recent survey of more than 120 solar companies by the Solar Trade Association (STA) and the Renewable Energy Association (REA), 11,000 solar jobs now face the axe and 33 per cent of companies fear they may be forced to close.
Sharp Solar is one of six UK solar manufacturing and assembly plants. It has had a UK presence for over 50 years and, despite the turmoil in the market, said its Wrexham plant was not at risk of closure.
"There are no plans to shut our manufacturing plant in Wrexham," Lee said.
Mounting pressure
However, the company’s letter to the Prime Minister will add to the pressure mounting on the Government to rethink its position. Last week, a
group of solar companies and Friends of the Earth launched their own separate legal challenges against the Department of Energy and Climate Change over the FiT scheme and the timeline for the cuts and consultation period.
The Government says the speed and scale of the cuts are necessary to ensure the FiT keeps within its capped budget.
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