Jobs in solar have already reduced by 32 per cent in the last 12 months, with four in 10 firms either exiting the market entirely or diversifying into other markets.
A new study of the solar industry from the Solar Trade Association (STA) and PwC suggested tax breaks are needed to reboot the sector in the UK as the global market accelerates.
According to this study, solar deployment is expected to fall significantly (75 per cent) in the near future, from an average of 1GW in the past five years to less than 300MW this year.
STA head of external affairs Leonie Greene said: “The survey shows very regrettable damage to thefabric 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.”
The UK government is allocating one per cent of new renewable energy project expenditure to solar power under the Feed-in-Tariff scheme, which the STA says it has been “long been concerned” about.
Nearly half of respondents to STA’s research see new build as a key sub market this year and one in eight respondents are also looking to move overseas to secure business opportunities with Africa and North America as key markets.
PwC head of renewables John Dashwood said: “These survey results show there will be a structural shift in the market and solar players need to consider alternative products, services and markets. Our report highlights the kind of innovation that can secure a positive future for solar energy in the UK.”
Deployment in domestic solar has dropped 80 per cent under the Feed-in Tariff compared to this time last year but the STA says that the new Department of Business, Energy and Industrial Strategy could represent a “very welcome opportunity to take a strategic approach to a winning and relatively cheap technology”.