UK Solar Industry Under Threat
Since the Conservatives won the election, there have been a raft of changes to the UK energy policy which the government justified the on the grounds that the industry can now stand on their own feet without the past levels of subsidies.
The industry has been up in arms and there has been calls from many quarters for a serious rethink.
News that the Mark Group has called in the administrator is supporting concerns that the cutting change to the UK energy policy could seriously damage the industry.
Nearly 1,000 jobs were axed as one of Leicestershire's biggest employers fell into administration. Staff at the Mark Group were told the company had gone into administration and 939 staff would lose their jobs with immediate effect.
Mark Group's managers had tried to buy the company from its parent SunEdison, in a last-ditch attempt to save the business But, after taking advice, they decided they had no choice but to put the business into administration. They blamed deepening losses on the Government's about-turn on green energy policy.
Bill Rumble, Mark Group's chief commercial officer, said: "I've been in the business nine years and I am desperately sad.
"Our thoughts are with all our colleagues and their families and we are keen to do whatever we can to support them at this difficult time."
He added: "Recent changes to Government policy on energy efficiency put a lot of pressure on the business."
The solar industry has been hit by a series of policy about-turns relating to renewable energy subsidies.
In a statement, Mark Group 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 underway, focused on solar panels but the Government's recent policy announcements mean this is no longer viable.
"Mark Group's management team recognise the talent and expertise within the business, which has been developed over four decades, and believe there is an opportunity to refocus the business on other energy saving technologies.
"Mark Group is now in the hands of administrators who are working to secure an urgent sale of the ongoing business."
Deloitte, the accountancy giant, was appointed as joint administrator for Mark Group this afternoon.
Administrator Chris Farrington said: "We are working with remaining employees to secure an urgent sale of the ongoing business. Prospective purchasers are encouraged to contact the administrators as soon as possible."
Deloitte added that all employees' arrears of wages will be paid up to date by the former owners, and the administrators will be organising re-employment skills workshops for employees affected by redundancy during the coming days.
Only three months ago US energy firm SunEdison purchased Mark Group, for an undisclosed sum, to help it grow its residential and commercial sales within the UK.
SunEdison said at the time that there were no plans for business restructuring or job losses.
However this week SunEdision announced radical restructuring to its portfolio and a rationalization of resources.
Paul Barwell, CEO of the Solar Trade Association, said:
"This is terrible news for the UK solar industry. The consultation has not even closed, and businesses are already going under "“ despite the fact that the Government claim this is a "˜real' consultation. Mark Group going into administration will also cause serious knock on effects in the supply chain."
"Surely this will set alarm bells ringing for the Government? Jobs matter, and there are 27,000 at stake. We are preparing alternative solutions and will be working with decision makers to discuss our alternative proposal for more structured, steady and workable reductions to support."
